Young people in particular, such as high school and college students, like to earn a little extra. Especially during college, money is often tight, which is not unusual for student life. That's why many students work a job on the side. Waiting tables, working in a warehouse, working in a kitchen or delivering newspapers, for example, are just a few of the options available. However, the wish to make money on the side applies to far more than just young people. Depending on your financial situation, the wish to earn extra on the side can affect anyone, regardless of age. When starting a family, too, it's often the case that when only the husband or the wife goes to work, the other partner takes an interest in making money on the side, simply to improve the overall financial situation a bit. In this article we want to go over a few basics you need to keep in mind when it comes to making money on the side.

Making money on the side - up to what income does it stay tax-free?

An important point with a side income is that you naturally have to consider beforehand whether it even makes sense to take a side job earning 600 euros if the taxes on that income are relatively high. This applies in particular with regard to the upper limit for a tax-free side income, known in Germany as a minijob. That limit is 450 euros. Until a few years ago you could only earn 400 euros a month tax-free, but the amount was raised a few years back. You don't have to pay tax on this side income of up to 450 euros, which makes extra earnings up to that amount very appealing to many people. It gets more problematic if you earn 600 euros a month, for example. The taxes that then apply are relatively high, so it's often worth simply staying within the 450 euro limit. As an example, if you take a minijob where you earn about 600 euros, only 400 euros would be left after taxes. So you might as well take a 450 euro job right away. In certain cases, though, the side job on offer brings a higher income, and if you're convinced that the working time is in proportion to the actual earnings left after taxes, you can certainly take that side job. Incidentally, it should be said here that the option of earning an extra 450 euros a month tax-free also applies to recipients of Arbeitslosengeld II (unemployment benefit II in Germany).

Making money on the side

What job options (minijobs) are there for making money on the side?

To close out this article, we'd like to present a short list of possible minijobs that could be an option for you for extra income. Of course, it has to be added that there are far more ways to earn a little extra each month. But we'd like to briefly introduce the most popular minijobs.

Possible minijobs:

  • Waiting tables (helping out in bars and restaurants)
  • Delivering newspapers or magazines
  • Working in company warehouses
  • Working at mail-order companies
  • Working from home