If you're living paycheck to paycheck, earning more can be one of the fastest ways to create breathing room in your budget. A side hustle or small business can help you generate extra income, build financial stability and reduce your reliance on debt when unexpected expenses come up.

Below are the best products and tools to help you start a side hustle, plus the smartest money move to make once that extra income starts rolling in.

There are countless ways to start a side hustle, and many of them require little more than skills or assets you already have. Freelancers often turn to platforms like Fiverr to offer services such as graphic design, writing, programming or social media management, while people with tools, equipment or other valuable items can earn passive income by renting them out on platforms like Hygglo.

If you love animals, pet sitting and dog walking can also be a flexible and profitable way to earn extra money. Many people get their start on Rover, which connects pet owners with sitters and walkers. As your client base grows, you can even eventually transition away from the platform so that you keep more of your earnings.

  • Fees- As a Seller, each Order you sell and successfully complete, credits your account with Earnings equal to 80% of the purchase amount.

  • Availability- The app is available in both the App Store (for iOS) and on Google Play (for Android); there's also a web version, but the app is more functional.

  • How do you get paid?- Earnings from your sales are all paid into your Fiverr account. You then have multiple withdrawal options, including your PayPal Account, Fiverr Revenue Card™, local bank transfer, or direct deposit. Only the PayPal option offers $0 in fees.

  • Fees- Collects a 20% commission from rental fee

  • Availability- The app is available in both the App Store (for iOS) and on Google Play (for Android); there's also a web version

If your side hustle starts gaining traction and you have a plan for how you'll generate more revenue, registering it as a small business can provide legal protections, help separate your personal and business finances and make it all look more professional.

We cover the process in detail in our guide to starting a business, but the short version is this: affordable business formation services like LegalZoom and Bizee can walk you through choosing the right business structure, such as an LLC or sole proprietorship, and handle the paperwork to register your business online. That way, you can spend less time navigating legal forms and more time growing your side hustle into something more.

  • Cost- $0 + state filing fees for Basic plan; $249 + state filing fees for Pro plan; $299 + state filing fees for Premium plan

  • App available?- Yes

  • Standout features- LegalZoom offers all sorts of services to help you register your business, fulfill annual reporting and licensing requirements and protect your business with trademarking, copyrighting and assistance from attorneys.

  • Cost- $0 + state filing fee for Basic plan; $199 + state filing fee for Standard plan; $299 + state filing fee for Premium plan

  • App available?- No

  • Standout features- Bizee offers several valuable features, including one year free for a Registered Agent service. The platform also offers compliance alerts, business banking, business tax consulting and more.

Starting a side hustle can be a powerful way to break the paycheck-to-paycheck cycle, but it's important to keep a few things in mind:

  • Start small and avoid taking on debt in the beginning
  • Focus on low-cost business ideas that let you test the waters before going all in
  • Be patient, as most side hustles take time to generate consistent income
  • Have a plan for the extra money you earn (more on this below)

If you decide to start a side hustle, have a plan for how the extra money you earn will be used, suggests Regina McCann Hess, CFP, founder and president of Forge Wealth Management.

"Without a plan, additional income can easily become part of everyday spending," Hess says. "Instead, assign the income to a specific purpose." That could mean paying down a credit card balance or simply keeping the cash set aside in a savings account so you have a financial cushion instead of relying entirely on your next paycheck.

To do this well, it may make sense to open a savings account dedicated only to the side hustle income you earn. This should be a high-yield savings account where you earn an above-average return and have your money accessible when you need it.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every small business article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of small business products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

At CNBC Select, we work with experts who have specialized knowledge and authority based on relevant training and/or experience. For this story, we interviewed Regina McCann Hess, CFP, founder and president of Forge Wealth Management.

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Editorial Note:Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.