A new survey by Quicken reveals new information about Americans who work side hustles – defined as any extra income someone earns on the side of their main source of income, such as their primary job or source of income.
The survey’s findings show that nearly half (43%) of Americans with a side hustle are working fewer hours and making more money than if they were in a single salaried position. Younger generations are even more likely to report this surprising outcome, with 50% of Gen Z and 48% of millennial respondents saying they work side hustles for fewer hours while making more money, compared to 34% of Gen X and Boomers.
Of those working less and making more, 82% said having multiple sources of income has helped prevent them from living paycheck to paycheck each month, with more than half (57%) having enough savings to live on for more than four months in an emergency. This increased level of financial stability is especially important as the majority (66%) of Americans are currently living paycheck to paycheck, according to another recent survey.
With more than 1 in 3 Americans now earning money through side hustles, this new data sheds light on how these additional income streams may be changing the way America works, especially for younger generations.
Within the group of respondents that report working fewer hours and making more money, the most popular side hustles include personal assistance (20%), cooking and baking (16%), and caregiving (16%). One-fifth of this group (21%) report being business owners (e.g. selling products online, catering business, photography, etc.) In addition to bolstering their current financial picture, many are looking ahead, with 25% of this group building skills they hope to apply to their future career, and 24% continuing to invest in their secondary income source with the goal of eventually working for themselves.
“At Quicken, we’re passionate about helping people achieve their financial goals and lead healthy financial lives,” said Eric Dunn, CEO. “This new data highlights a group of Americans who are turning to contract work and side hustles to creatively supplement their income. This is allowing them to address other elements of their financial situation, including paying down debts, saving for major purchases, and more.”
Across all respondents with more than one source of income, 72% say they feel more financially secure thanks to their side hustle. Additionally, two-thirds (67%) feel less stressed financially.
For many, side hustles empower them to pay off existing debts. 84% of all side hustle respondents reported having been in debt at some point, and nearly a third (31%) are prioritizing paying down their overall current debt with the extra income they’re making.
With a weak jobs report indicating a slowing U.S. economy, many Americans may be considering taking on a side hustle to prepare for the road ahead. Here’s a closer look at how Americans are tapping into their additional income:
- 25% percent of Gen Z and 22% of millennials are using their secondary income to pay down student loans.
- Americans with side hustles are saving for vacations (41%), cars (35%), retirement (33%), homes (29%), and more.
- Two thirds (66%) of multi-job Americans say that having a side hustle has helped them become more aware of their own finances and how to track them.
For more information, please visit Quicken’s blog here.
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Tags: Payroll
