In today’s economy, many Americans are turning to side hustles to supplement their main source of income. A recent survey conducted by Quicken, the maker of America’s best-selling personal finance software, revealed some interesting findings about the financial security and stability that multiple income streams can provide.
According to the survey, nearly half of Americans with a side hustle are working fewer hours and making more money than they would in a single salaried position. This trend is particularly pronounced among younger generations, with 50% of Gen Z and 48% of millennials reporting that they work side hustles for fewer hours while earning more money. This shift in the traditional work model is allowing individuals to build up their savings and avoid living paycheck to paycheck.
The survey also found that having multiple sources of income has helped 82% of respondents prevent living paycheck to paycheck each month. In fact, more than half of those with side hustles have enough savings to cover emergency expenses for more than four months. This increased level of financial stability is crucial, especially considering that the majority of Americans are currently living paycheck to paycheck, according to another recent survey.
One of the most significant benefits of having a side hustle is the feeling of financial security it provides. 72% of respondents with more than one source of income reported feeling more financially secure thanks to their side hustle, while two-thirds felt less stressed financially. This added income stream also empowers individuals to pay off existing debts, with 31% of respondents prioritizing paying down their overall debt with the extra income they’re making.
The survey also shed light on the most popular side hustles among respondents who are working fewer hours and making more money. Personal assistance, cooking and baking, caregiving, and owning a business were among the top choices. Additionally, many individuals are using their secondary income to pay down student loans, save for vacations, cars, retirement, homes, and more.
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. Side hustles not only provide additional income but also help individuals become more aware of their finances and how to track them effectively.
Overall, the data from Quicken’s survey highlights the growing trend of Americans turning to side hustles to supplement their income and achieve financial stability. With the right approach and dedication, a side hustle can not only provide financial security but also open up opportunities for personal and professional growth.
