30% of American Consumers Rely on Side Gigs to Cover Expenses

Inflation in the United States has seen a decrease from its peak in July 2022, dropping to 3.3%. However, despite this improvement, many consumers are still feeling the financial strain and are turning to side hustles to make ends meet. For a significant number of individuals, this additional income has become almost essential to their financial stability.

According to the latest PYMNTS Intelligence Paycheck-to-Paycheck Report, titled “High-Income Consumers Lead Surprising New Data on Side Hustles,” 30% of consumers who engage in side hustles stated that losing this extra income would have a very or extremely negative impact on their financial well-being. This percentage increased to 53% for consumers who live paycheck to paycheck and struggle to meet their financial obligations.

Interestingly, the report revealed that even high-income earners, those making over $100,000 annually, are turning to side hustles for additional income. 26% of high-income consumers have sought out extra income in recent months, with a significant portion of them engaging in active income sources such as reselling items, performing informal tasks, or creating artisan products. This indicates that even those with higher incomes are feeling the need to supplement their earnings through alternative means.

When it comes to passive income sources, profits from investments remain the top choice for high-income consumers. 14% of high-income earners received investment earnings, compared to only 3.4% of low-income consumers. However, the gap narrows when considering active income sources. While 11.4% of high-income earners earned money by selling used items, 8.2% of those earning between $50,000 and $100,000 annually, and 7.3% of low-income consumers did the same.

Regardless of income level, turning to friends and family for financial support is a common resource. Approximately 7% of high-income consumers sought assistance from friends and relatives, while 8.2% of individuals earning less than $100,000 annually did the same. This suggests that the need to rely on others for financial help may be a universal experience, regardless of income bracket.

In conclusion, the impact of inflation and economic challenges is still being felt by many consumers in the United States, leading them to explore alternative sources of income through side hustles. The data from the PYMNTS report highlights the diverse ways in which individuals are supplementing their earnings, with even high-income earners turning to active income sources for financial support. As the economy continues to fluctuate, the trend of side hustles as a means of financial stability may persist, emphasizing the importance of adaptability and resourcefulness in managing personal finances.