The Hustle is Back in Style: Why Americans are Working Extra Jobs
[Image: A photo of a person working on a laptop or computer]
The Rise of Side Hustles
In recent years, the trend of having a side hustle has become increasingly popular. According to a survey of 2,300 adults, more than one-third of respondents (36%) reported having a side hustle. This trend is expected to continue, with extra work aside from one’s primary income resulting in an extra $891 per month, up from $810 in 2023.
Who’s Doing the Hustle?
Not everyone is equally invested in the side hustle phenomenon. Men are more likely to have a side hustle than women, and younger workers are more likely to side hustle than older folks. In fact, nearly half (48%) of 18- to 27-year-old respondents told Bankrate they have a side hustle, compared to just a third of Gen Xers and fewer than 1 in 4 boomers.
Why the Hustle?
Despite tiny dips, high inflation is expected to remain stubborn this year, regardless of which presidential candidate is elected in November. This means that the price of basic cost-of-living essentials like rent, gas, and groceries will continue to shock, and respite for the roughly half of American workers living paycheck-to-paycheck may remain elusive.
How are People Using Their Side Hustle Earnings?
According to Bankrate, almost 40% of respondents with a side hustle said they use at least some of their extra earnings to fund their discretionary spending. Close behind was regular living expenses, and only 31% said they save at least some of their side-hustle money. Only 1 in 5 hustlers say they’re using their extra cash to pay down debt.
The Non-Essential Spending Conundrum
Perhaps the habit of spending right away is what’s keeping workers working so much. All told, about a third of side hustlers told Bankrate they expect they’ll "always" need to have a gig on the side in order to make ends meet. But they also seem to recognize the precarity of their position: Only 16% said they actually want their side hustle to become their primary source of income.
A Tenuous Situation
Bankrate senior analyst Ted Rossman notes that the economy has been good, but he worries about the future. "Even though, on the face of it, the economy has been good, I do worry a bit if this many people need a side hustle now. It makes me worried for the future."
Conclusion
The side hustle phenomenon is a complex issue, with both positive and negative implications. While it can provide a safety net for those living paycheck-to-paycheck, it can also perpetuate a culture of spending rather than saving and investing. As the article concludes, "Money saved early becomes a mountain of money later." It’s up to individuals to make the most of their side hustle earnings and prioritize their financial goals.
FAQs
Q: Why are people having side hustles?
A: People are having side hustles due to high inflation and the need for extra income to make ends meet.
Q: Who is most likely to have a side hustle?
A: Men are more likely to have a side hustle than women, and younger workers are more likely to side hustle than older folks.
Q: How are people using their side hustle earnings?
A: Almost 40% of respondents with a side hustle said they use at least some of their extra earnings to fund their discretionary spending.
Q: Is the side hustle phenomenon a good thing?
A: It depends on how people use their side hustle earnings. While it can provide a safety net, it can also perpetuate a culture of spending rather than saving and investing.
Q: What can people do to make the most of their side hustle earnings?
A: People can prioritize saving and investing, and avoid using their side hustle earnings for non-essential spending.
Author: fortune.com
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