A recent study from Dollar Sprout finds an astounding 77% of Americans turn to side hustles to supplement their income and cover day-to-day expenses. This trend is a stark indicator of the financial strain many face, as people are not taking on additional work by choice but out of necessity.
Inflation has had a significant impact on many Americans in the last few years. Many struggle to make ends meet. With the cost of groceries, housing, gas, and everything else at an all-time high, individuals search for ways to combat the need for more income.
Why Start a Side Hustle
Of course, money is usually the main reason someone starts a side hustle; 80% of people surveyed said that was true for them. A mere 8% started their side gig due to interest or passion for the project.
Across the board, economic uncertainty and rising living costs popularized side hustle ideas for most.
69% of Americans report having a side hustle. No age group is immune from taking on extra work. More than 18% of Baby Boomers report having a side hustle, but millennials make up the lion’s share, as more than half (55%) work a side gig.
Nearly three-quarters (72%) of American men have a side hustle. American women are close behind at 66%.
More than one-quarter (27%) of Americans’ side hustles supplement their income, but the amount they can make each month differs. Sixty-eight percent make less than $500 each month, and a mere 12% make $1,000 or more monthly.
How much time each person spends on their side hustles varies from individual to individual. 18% say they invest more than 15 hours per week, while 31% spend fewer than five hours weekly.
Popular Side Hustles
Some consumers struggle to decide which side hustle to pursue among countless available opportunities.
While online freelance work — writing, graphic design, or getting paid to text, among other tasks — comprises close to 30% of side hustles, it isn’t the most popular choice.
Survey administration gigs lead the way, with 72% opting for this work, followed by online sales or “flipping,” which 39% say is their preferred hustle.
Of other hustlers, 23% took a more hands-on approach, engaging in ride-sharing and delivery services. Investment and real estate make the cut, too, with 31% choosing this line of work.
Moving From Spending To Saving
Although 77% of people with side hustles depend on their income to cover their daily spending, it doesn’t have to stay that way.
Whether using apps that pay money as a side hustle or launching an online store selling handmade goods, some gigs boost income enough to grant consumers hefty savings contributions.
Knowing where income is going is an effective way to move from spending side hustle income to saving it. Consumers hoping to kickstart financial change need to familiarize themselves with their finances. A paycheck from a full-time job can cover expenses, provided consumers cut unnecessary expenses, create informed family budgets, and meticulously track money flow.
Once their finances are in order, it’s time to start paying off high-interest debts like credit cards. This is where the side hustle income comes in, and using the debt snowball method makes this an easier task.
Focus on paying off the debt with the smallest balance first, then repeat for the next smallest. Continue until you’ve paid off all debts. After eliminating high-interest debt, it’s time to begin investing. Putting all the income earned from a side gig into an investment account can compound it, giving way to substantial savings over time.
Another good idea when considering a side hustle is to choose something that could enhance a person’s career. By selecting side opportunities that allow them to gain new skills that make them more valuable to employers, working Americans could command a higher salary.
Likewise, choosing a side hustle for a career one wants to work in could be a great way to get some experience before making the change.
