5 holiday side hustles to boost your end-of-year budget

The holiday season is a time for having fun, spending quality time with loved ones — and spending money.

The average person plans to spend $890 on holiday gifts, food, decorations, and other seasonal items this year, according to the National Retail Federation’s annual consumer survey. That can put a big dent in your budget, and may even lead to a holiday debt hangover in January if you aren’t financially prepared.

Fortunately, the season of giving is also the season of opportunity. From wrapping gifts and walking dogs to selling handmade crafts online, a holiday side hustle can help you bring in extra cash when you need it most — and maybe even kick off a new, year-round stream of income.

Earning extra money with a side gig is one way to ensure you can afford added expenses around the holidays. Here are a few options to consider.

Are you someone who revels in crafting a neatly wrapped present with the perfect wrapping paper and ribbon combination? Well, you can get paid for this special set of skills. According to Zip Recruiter, professional gift wrappers in the U.S. make an average of $18 per hour.

There are many options for providing this service — you can work out of your own home, provide gift-wrapping services by appointment at clients’ homes, or even partner with local retailers to offer gift-wrapping services on-site.

The holiday season is a busy time for many people, and some prefer to outsource their everyday tasks — like grocery shopping for holiday meals or parties.

If you enjoy combing grocery store aisles with a shopping list in hand — and have your own transportation — consider signing up to work for a grocery delivery service such as Instacart, Amazon Fresh, or Shipt. The typical pay is $15 to $25 per hour after tips, depending on your location and efficiency.

You may need to pass a background check to become a shopper on these apps and/or provide proof of car insurance that covers commercial delivery work. So, if you decide to take on this side hustle, be sure to read the fine print and ensure you can comply with the app’s rules for joining.

Many pet parents travel abroad for the holiday season and rely on pet sitters to care for their animals during the holidays. If you’re an animal lover, you can use apps such as Rover and Wag! to connect with people in need of pet sitters. But if staying overnight in a stranger’s house isn’t your thing, you can also opt to provide dog walking services or home drop-ins for clients who are busy during the day.

Alternatively, if you have a network of friends and family who can refer you to clients, you can provide pet care services directly. This is the most lucrative option because there’s no middleman to take a cut of your earnings.

Many retail stores hire seasonal workers to meet the increased demand during the holiday season. If you’re looking for part-time work (and potentially, an employee discount), check out the dedicated “seasonal jobs” webpages for Target, Walmart, Kohl’s, Macy’s, Bath & Body Works, Best Buy, and other retailers. Common positions include cashiers, stock associates, sales floor associates, and greeters.

Keep in mind that seasonal retail roles often require you to work evenings, weekends, and holidays; being open to those shifts makes you much more hirable. You should also be willing to start right away and stay through early January. And if you perform well, there’s a chance you may be offered a full-time position once the holidays are over.

Holiday shoppers are often looking for creative gifts and decor. So if you’re particularly crafty, you could set up an online store on a site like Etsy and sell your handmade goods (Think: candles, ornaments, greeting cards, or custom tote bags).

Or maybe you’re an expert thirfter. If you have an eye for standout pieces, consider flipping your finds on eBay, Poshmark, or Facebook Marketplace.

Before taking on a side gig, it’s important to understand how it will impact your finances and lifestyle.

For instance, earning money on the side comes with tax implications. Whether you’re working an extra part-time job or earning side income doing gig work, the money you earn is considered taxable income. And if taxes aren’t automatically deducted from your paycheck, you’ll need to set aside 25% to 30% of your earnings for estimated quarterly taxes.

Read more: Filing independent contractor taxes: A step-by-step guide

It’s also important to find out whether your primary employer has any rules against having a side hustle before you get started. For example, you may have signed a noncompete clause that prevents you from working with competitors. Even if you didn’t, if your side gig and your main job are similar in nature and target the same customers, it could be considered a conflict of interest and put your main job at risk.

Finally, consider whether taking on a side gig will truly help or hurt your overall situation. Having extra money in the bank ahead of the holidays is great, but adding too much to your plate during an already busy time could lead to burnout in the new year. Plus, certain jobs may require an upfront investment for things like crafting supplies or gas for your car, which can eat into your profits.

So, be realistic about how much time and money you can dedicate to a holiday side hustle, and be sure you factor in some downtime to actually enjoy the holidays, too.

Read more: 6 creative holiday savings tips to keep your budget in check this year