February 19, 2025 • 12 mins
Could your side hustle be sabotaging your financial freedom instead of supporting it? Join me as we unravel the hidden traps that might be keeping your side gig from being the profitable venture you envisioned.
Tune in to discover how to turn your side hustle into a true asset, avoiding the errors that could be costing you more than you realize. Don't miss this game-changing episode that could redefine your financial strategy.
Connect with Kimberly
Join the waiting list for Positioned for Love - Ready to find the love you've prayed for and deserve? Join Kimberly's Positioned For Love program, tailored for single Christian women, and gain exclusive early access to our next enrollment.
Follow Kimberly on Facebook
Connect with Kimberly on Instagram
Visit her website
Download your copy now -> Should You Take Your Ex Back
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:01):
Hey, this is Kimberly Knight with the Position
Podcast, and today we are goingto talk about something that we
have not talked about before, sobe sure to like, share and
comment, because this could be agame changer for you and your
economic situation.
So today we're going to talkabout three reasons why your
(00:25):
side hustle is keeping you broke.
Sips tea, minds business.
No, I'm not going to mind mybusiness, I'm going to tell it
all.
Listen, some of you have a sidehustle because you are looking
to improve your economicsituation and, if ever we need
it to be sure that we can takegood care of ourselves, it is
(00:48):
now, right now o'clock.
The economic and politicalsituation in our country has
significantly changed, and thathas impacted other countries and
industries as well.
So let's just think about thisfor a minute, because I want you
to be able to take good care ofyourself and of your family and
(01:11):
your responsibilities, but thisside hustle of yours is keeping
you broke.
So the first thing is that youare co-mingling funds.
So co-mingling funds means thatyou are mixing your personal
money with your business money.
Now, why is that an issue?
Let's talk about it.
I'm so glad you asked.
(01:33):
Let's say you have a full-timejob and you bake cakes on the
side as your side hustle, right?
So your paycheck is depositedinto your bank account Fabulous
right, and you're paying bills.
You bought your friend a cup ofcoffee, you just gave your
daughter a birthday party fromthat account and also you baked
(01:57):
10 cupcakes and sold 10 cupcakes, and you put that money into
that account as well.
How do we know which is which?
How do we account for that?
You can't, because you'reco-mingling the funds.
You're mixing your personal andyour business, and they should
(02:18):
not mix.
So let's think about this aswell.
Why is that a big deal?
Besides the fact that you can'taccount for what is business
and what is personal?
I mean, after all, you're goingto use it, right.
I guarantee you and please letme know in the comments if I'm
telling the truth, because Iguarantee this is true when it
(02:38):
comes time for the baker youknow we've got that side hustle
baking those cupcakes to buymore supplies milk, eggs, butter
, and we know, eggs right now.
Right, it's time for you to buysupplies.
Now you're trying to hustle upmoney.
Because why?
You don't have the money?
You just spent it on yourdaughter's birthday party
(02:59):
because the funds werecommingled.
So not only are you comminglingfunds, so you cannot tell
what's business and what'spersonal, but you also will not
have clear money set aside foryour supplies.
Now, why is that an issue?
Because if you don't get flour,butter, salt water, whatever it
(03:23):
is that you need to make thosedarn cupcakes, you're out of
business.
Make those darn cupcakes,you're out of business.
Why else is commingling fundsan issue?
Commingling funds is also anissue because, guess what?
Here's the second thing that'skeeping you broke.
Even though you have a sidehustle, you haven't filed taxes
(03:44):
on that money, so you alsocannot file for the benefits or
the deductions that you'reentitled to as a business owner,
and they are hefty.
Everybody wants tax deductions.
No one wants to pay taxes.
Well, guess what?
If you're not registered as abusiness?
Guess what?
You can't take the taxdeductions that you're eligible
(04:07):
for.
Oh my gosh, yeah.
So it doesn't seem like a bigdeal on the surface, but it is.
Because now you've co-mingledfunds, you can't account for it.
You haven't paid taxes on it,which, by the way, technically
is a crime Technically.
(04:29):
And there's also scripture thattells us to obey the laws of the
land and to pay our taxes.
It's in there, read the book.
I'm serious, I am not kiddingyou.
It is in there.
So we want to consider thatbecause there are so many
deductions that you are losingout on that, if you really
understood it you would becompletely upset.
(04:54):
I'll just leave it there.
You would be upset.
So you're not paying the taxeson it.
So you can't get the deductionsand for most of you I would say
, especially those of youstarting out and you haven't had
a lot of clientele Most of you,I would say especially those of
you starting out and youhaven't had a lot of clientele
(05:14):
those deductions are significant.
The return that you wouldreceive, the refund that you
would receive, would besignificant to you and could
possibly set you up to help youscale right, using that refund
to build your business.
So you want to consider thatyou're not getting the tax
benefits and technically youdidn't hear from me you're
committing a crime.
Please don't put that in thecomments.
Okay, just make it right, butdon't put it in the comments.
(05:39):
You know that's how they got AlCapone right.
They couldn't get him on all ofthe things he was doing killing
people, selling illegal goodsbut he didn't pay his taxes.
They put him away.
I'll wait, all right.
Here's another reason that youreally are not seeing the kind
(06:02):
of money you should, even thoughyou have a side hustle, because
you're commingling funds,because you're not filing tax
returns.
You cannot file for things likethere are all kinds of economic
advantages or loans, very lowinterest loans or no interest
loans, grants and programs youdon't qualify for because, guess
(06:26):
what?
You're not a business.
You're just somebody bakingcupcakes, which there's nothing
wrong, by the way.
You're a really good cupcakebaker.
See you, girl, all right.
However, because you don't haveany of the paperwork needed, you
don't have any of the proof,you don't have any of the
documentation.
You're co-mingling funds, soyou do not have a business bank
(06:48):
account.
We cannot get your statementsbecause when you go to file for
these things grants, programs Iwill tell you I even won a grant
and a business competition.
But guess what?
I had to supply them with myregistration with my state as a
(07:09):
business, my last year of taxreturns yeah, you guessed it as
a business and three monthsworth of bank deposit statements
.
Guess what, as a business.
They wanted that in my EINnumber and we'll talk about that
in some other episodes, but itis very, very important because
a lot of us would be eligiblefor a lot of different things
(07:30):
that we can't take advantage ofright now Because, guess what,
we're not officially a business.
So if you have a side hustle andyou are co-mingling funds and
you're not filing your taxreturns and you don't have the
appropriate paperwork that filedwith your state, you are
missing out on all theseopportunities and it's costing
(07:53):
you and keeping you broke.
Now, I know I said that I wasgoing to give you three, but I
think let me just check if Ithink I may throw in another one
.
Oh, okay, so another reason Iam going to throw in this extra
one.
Another reason that you are notseeing the kind of money that
(08:16):
you should see, even though youhave a side hustle, beyond
commingling your funds, beyondlosing out on humongous tax
benefits oh, by the way, you doknow that the current, as of
this recording the current taxcode, probably 90% of the
deductions are for businesses,not individuals.
(08:36):
C'est la Think calmly, quietlyand long on that.
And also because you cannottake advantage of different
programs and different thingsyou'd be eligible for because
you don't have the appropriatepaperwork.
In addition to that, if youdon't have all of these things
(08:56):
in place, you're actually justmaking yourself exhausted.
So you're expending energy inkeeping this business going, but
you're not progressing.
You can't scale it because it'snot a business.
So when we talk about scaling,scaling means you make your
business bigger, right?
So you grow.
(09:18):
You can't grow because you'renot a business.
And even if you areexperiencing growth, it is
stunted because, guess what,you're not a business.
Your paperwork is not in order.
Let all things be done decentlyand in order.
So here's the thing.
Here's the thing.
(09:38):
Let's go back to our baker.
So we bake those 10 cupcakes.
Our money is commingled Becauseour money is commingled.
Now I am hustling to get themoney together because I got an
order for three cakes thisweekend, but guess what, I don't
get paid until Tuesday.
I need that money by Fridaybecause they're going to pick up
(09:58):
those cakes on Saturday.
So I took a deposit, but guesswhat?
Eggs cost much more than Ithought.
They did.
So and I didn't.
I don't have any of thefinancial paperwork that I need
to know how much I should reallycharge.
Okay, we'll do that in anotherepisode, because pricing is a
whole other ball game, right?
So I don't.
And and and, and on top of, ontop of all of that, right,
(10:23):
because the economic climate haschanged, the employment climate
has changed in the US.
I'm not even sure if I'mgetting a paycheck on Tuesday,
but I need to get these cupcakesout on Friday.
So here is the thing I am nowstressed on top of everything
(10:45):
else I'm expending energy, butI'm not moving forward.
I'm not expending that energyand growing.
I'm not expending that energyin participating in things that
are going to make me even moreprofitable.
I'm expending energy now intrying to rob Peter to pay Paul
so I can get what I need to bakethe next set of cakes, rather
than have a business accountthat's set aside and we'll talk
(11:06):
about this, too, in anotherepisode a business account
that's set aside so that I havethe money I need when I need it,
for the raw materials to makewhat I need to make.
So it's like I'm expendingenergy, but I'm not getting any.
I'm not moving forward.
I'm kind of running in place.
So I'm tired, I'm stressed andI'm having to use my creative
ability to figure out how I'mgoing to get enough money to
(11:30):
make sure that I have my rawmaterials, rather than to create
these beautiful cakes ratherthan to create these beautiful
cakes.
So, for that reason, doingbusiness as a side hustle rather
than a legitimate business ohLord, have mercy is keeping you
broke, broke and stressed, andthe last thing you need is some
(11:52):
extra stress.
So I promised you three, but Igave you four.
I always want to give you alittle bit more for your
troubles.
I am telling you, it is time,it is the season where you
should consider making this sidehustle a legitimate business,
and we're going to talk moreabout that in coming episodes.
In the meantime, be sure toshare this with your friends who
(12:14):
also have a side hustle andcome back for more.
Be sure to like and share.
Be sure to save this with yourfriends who also have a side
hustle and come back for more.
Be sure to like and share.
Be sure to save this episode,because you're going to need to
refer to it.
I love you lots and I'll seeyou soon.
Bye, bye for now.
Hey, this is Kimberly Knight with the Position
Podcast, and today we are goingto talk about something that we
have not talked about before, sobe sure to like, share and
comment, because this could be agame changer for you and your
economic situation.
So today we're going to talkabout three reasons why your
(00:25):
side hustle is keeping you broke.
Sips tea, minds business.
No, I'm not going to mind mybusiness, I'm going to tell it
all.
Listen, some of you have a sidehustle because you are looking
to improve your economicsituation and, if ever we need
it to be sure that we can takegood care of ourselves, it is
(00:48):
now, right now o'clock.
The economic and politicalsituation in our country has
significantly changed, and thathas impacted other countries and
industries as well.
So let's just think about thisfor a minute, because I want you
to be able to take good care ofyourself and of your family and
(01:11):
your responsibilities, but thisside hustle of yours is keeping
you broke.
So the first thing is that youare co-mingling funds.
So co-mingling funds means thatyou are mixing your personal
money with your business money.
Now, why is that an issue?
Let's talk about it.
I'm so glad you asked.
(01:33):
Let's say you have a full-timejob and you bake cakes on the
side as your side hustle, right?
So your paycheck is depositedinto your bank account Fabulous
right, and you're paying bills.
You bought your friend a cup ofcoffee, you just gave your
daughter a birthday party fromthat account and also you baked
(01:57):
10 cupcakes and sold 10 cupcakes, and you put that money into
that account as well.
How do we know which is which?
How do we account for that?
You can't, because you'reco-mingling the funds.
You're mixing your personal andyour business, and they should
(02:18):
not mix.
So let's think about this aswell.
Why is that a big deal?
Besides the fact that you can'taccount for what is business
and what is personal?
I mean, after all, you're goingto use it, right.
I guarantee you and please letme know in the comments if I'm
telling the truth, because Iguarantee this is true when it
(02:38):
comes time for the baker youknow we've got that side hustle
baking those cupcakes to buymore supplies milk, eggs, butter
, and we know, eggs right now.
Right, it's time for you to buysupplies.
Now you're trying to hustle upmoney.
Because why?
You don't have the money?
You just spent it on yourdaughter's birthday party
(02:59):
because the funds werecommingled.
So not only are you comminglingfunds, so you cannot tell
what's business and what'spersonal, but you also will not
have clear money set aside foryour supplies.
Now, why is that an issue?
Because if you don't get flour,butter, salt water, whatever it
(03:23):
is that you need to make thosedarn cupcakes, you're out of
business.
Make those darn cupcakes,you're out of business.
Why else is commingling fundsan issue?
Commingling funds is also anissue because, guess what?
Here's the second thing that'skeeping you broke.
Even though you have a sidehustle, you haven't filed taxes
(03:44):
on that money, so you alsocannot file for the benefits or
the deductions that you'reentitled to as a business owner,
and they are hefty.
Everybody wants tax deductions.
No one wants to pay taxes.
Well, guess what?
If you're not registered as abusiness?
Guess what?
You can't take the taxdeductions that you're eligible
(04:07):
for.
Oh my gosh, yeah.
So it doesn't seem like a bigdeal on the surface, but it is.
Because now you've co-mingledfunds, you can't account for it.
You haven't paid taxes on it,which, by the way, technically
is a crime Technically.
(04:29):
And there's also scripture thattells us to obey the laws of the
land and to pay our taxes.
It's in there, read the book.
I'm serious, I am not kiddingyou.
It is in there.
So we want to consider thatbecause there are so many
deductions that you are losingout on that, if you really
understood it you would becompletely upset.
(04:54):
I'll just leave it there.
You would be upset.
So you're not paying the taxeson it.
So you can't get the deductionsand for most of you I would say
, especially those of youstarting out and you haven't had
a lot of clientele Most of you,I would say especially those of
you starting out and youhaven't had a lot of clientele
(05:14):
those deductions are significant.
The return that you wouldreceive, the refund that you
would receive, would besignificant to you and could
possibly set you up to help youscale right, using that refund
to build your business.
So you want to consider thatyou're not getting the tax
benefits and technically youdidn't hear from me you're
committing a crime.
Please don't put that in thecomments.
Okay, just make it right, butdon't put it in the comments.
(05:39):
You know that's how they got AlCapone right.
They couldn't get him on all ofthe things he was doing killing
people, selling illegal goodsbut he didn't pay his taxes.
They put him away.
I'll wait, all right.
Here's another reason that youreally are not seeing the kind
(06:02):
of money you should, even thoughyou have a side hustle, because
you're commingling funds,because you're not filing tax
returns.
You cannot file for things likethere are all kinds of economic
advantages or loans, very lowinterest loans or no interest
loans, grants and programs youdon't qualify for because, guess
(06:26):
what?
You're not a business.
You're just somebody bakingcupcakes, which there's nothing
wrong, by the way.
You're a really good cupcakebaker.
See you, girl, all right.
However, because you don't haveany of the paperwork needed, you
don't have any of the proof,you don't have any of the
documentation.
You're co-mingling funds, soyou do not have a business bank
(06:48):
account.
We cannot get your statementsbecause when you go to file for
these things grants, programs Iwill tell you I even won a grant
and a business competition.
But guess what?
I had to supply them with myregistration with my state as a
(07:09):
business, my last year of taxreturns yeah, you guessed it as
a business and three monthsworth of bank deposit statements
.
Guess what, as a business.
They wanted that in my EINnumber and we'll talk about that
in some other episodes, but itis very, very important because
a lot of us would be eligiblefor a lot of different things
(07:30):
that we can't take advantage ofright now Because, guess what,
we're not officially a business.
So if you have a side hustle andyou are co-mingling funds and
you're not filing your taxreturns and you don't have the
appropriate paperwork that filedwith your state, you are
missing out on all theseopportunities and it's costing
(07:53):
you and keeping you broke.
Now, I know I said that I wasgoing to give you three, but I
think let me just check if Ithink I may throw in another one
.
Oh, okay, so another reason Iam going to throw in this extra
one.
Another reason that you are notseeing the kind of money that
(08:16):
you should see, even though youhave a side hustle, beyond
commingling your funds, beyondlosing out on humongous tax
benefits oh, by the way, you doknow that the current, as of
this recording the current taxcode, probably 90% of the
deductions are for businesses,not individuals.
(08:36):
C'est la Think calmly, quietlyand long on that.
And also because you cannottake advantage of different
programs and different thingsyou'd be eligible for because
you don't have the appropriatepaperwork.
In addition to that, if youdon't have all of these things
(08:56):
in place, you're actually justmaking yourself exhausted.
So you're expending energy inkeeping this business going, but
you're not progressing.
You can't scale it because it'snot a business.
So when we talk about scaling,scaling means you make your
business bigger, right?
So you grow.
(09:18):
You can't grow because you'renot a business.
And even if you areexperiencing growth, it is
stunted because, guess what,you're not a business.
Your paperwork is not in order.
Let all things be done decentlyand in order.
So here's the thing.
Here's the thing.
(09:38):
Let's go back to our baker.
So we bake those 10 cupcakes.
Our money is commingled Becauseour money is commingled.
Now I am hustling to get themoney together because I got an
order for three cakes thisweekend, but guess what, I don't
get paid until Tuesday.
I need that money by Fridaybecause they're going to pick up
(09:58):
those cakes on Saturday.
So I took a deposit, but guesswhat?
Eggs cost much more than Ithought.
They did.
So and I didn't.
I don't have any of thefinancial paperwork that I need
to know how much I should reallycharge.
Okay, we'll do that in anotherepisode, because pricing is a
whole other ball game, right?
So I don't.
And and and, and on top of, ontop of all of that, right,
(10:23):
because the economic climate haschanged, the employment climate
has changed in the US.
I'm not even sure if I'mgetting a paycheck on Tuesday,
but I need to get these cupcakesout on Friday.
So here is the thing I am nowstressed on top of everything
(10:45):
else I'm expending energy, butI'm not moving forward.
I'm not expending that energyand growing.
I'm not expending that energyin participating in things that
are going to make me even moreprofitable.
I'm expending energy now intrying to rob Peter to pay Paul
so I can get what I need to bakethe next set of cakes, rather
than have a business accountthat's set aside and we'll talk
(11:06):
about this, too, in anotherepisode a business account
that's set aside so that I havethe money I need when I need it,
for the raw materials to makewhat I need to make.
So it's like I'm expendingenergy, but I'm not getting any.
I'm not moving forward.
I'm kind of running in place.
So I'm tired, I'm stressed andI'm having to use my creative
ability to figure out how I'mgoing to get enough money to
(11:30):
make sure that I have my rawmaterials, rather than to create
these beautiful cakes ratherthan to create these beautiful
cakes.
So, for that reason, doingbusiness as a side hustle rather
than a legitimate business ohLord, have mercy is keeping you
broke, broke and stressed, andthe last thing you need is some
(11:52):
extra stress.
So I promised you three, but Igave you four.
I always want to give you alittle bit more for your
troubles.
I am telling you, it is time,it is the season where you
should consider making this sidehustle a legitimate business,
and we're going to talk moreabout that in coming episodes.
In the meantime, be sure toshare this with your friends who
(12:14):
also have a side hustle andcome back for more.
Be sure to like and share.
Be sure to save this with yourfriends who also have a side
hustle and come back for more.
Be sure to like and share.
Be sure to save this episode,because you're going to need to
refer to it.
I love you lots and I'll seeyou soon.
Bye, bye for now.
Popular Podcasts
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
24/7 News: The Latest
The latest news in 4 minutes updated every hour, every day.
Crime Junkie
Does hearing about a true crime case always leave you scouring the internet for the truth behind the story? Dive into your next mystery with Crime Junkie. Every Monday, join your host Ashley Flowers as she unravels all the details of infamous and underreported true crime cases with her best friend Brit Prawat. From cold cases to missing persons and heroes in our community who seek justice, Crime Junkie is your destination for theories and stories you won’t hear anywhere else. Whether you're a seasoned true crime enthusiast or new to the genre, you'll find yourself on the edge of your seat awaiting a new episode every Monday. If you can never get enough true crime... Congratulations, you’ve found your people. Follow to join a community of Crime Junkies! Crime Junkie is presented by audiochuck Media Company.