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Why are so many Americans starting side hustles? What are the pros and cons of having a side hustle?
Nearly 40% of Americans rely on side hustles to supplement their incomes as inflation has outstripped wages. While extra earnings provide a financial cushion, side hustles can negatively impact work-life balance and health.
Continue reading for more insights into the downsides and benefits of a side hustle.
Americans Are Hustlin’
A record 39% of Americans now have a side hustle to supplement their income. For many, the trend is fueled by necessity, not choice.
We’ll go over why side hustles are suddenly so popular and the downsides and benefits of side hustles.
What Is a Side Hustle?
A side hustle is additional work beyond one’s primary job to earn extra income, covering a broad range of activities such as rideshare driving, grocery shopping, dog walking, freelance writing, consulting, and selling handmade crafts.
Side hustles’ popularity has surged in recent years, driven in large part by stagnant wages and a high cost of living stemming from high inflation.
Roughly 33% of Americans now rely on a side hustle to cover basic living expenses, with the average American dedicating 13 additional hours a week to them.
Who’s Side Hustling
Experts say that both younger and older Americans have turned to side hustles in recent years. Younger Americans have taken on additional work to afford larger purchases they’ve made or want to make, such as homes and financed items like cars, where prices have jumped significantly. Individuals over 60 who believed that savings or pensions would carry them through retirement have been forced into gig work in the face of soaring costs.
Side Hustle Benefits
Experts say the main benefit of a side hustle is increased income. The average side hustler earns $810 a month—nearly $10,000 a year in extra cash flow that can go toward daily necessities, achieving financial goals more quickly, or building savings as a cushion against emergencies. Some individuals manage to transform their side passion into a lucrative, full-time business.
Although some employers worry that engaging in a side job will negatively impact employees’ performance in their primary role, studies suggest that side hustles can empower workers by fostering new routines and skills that improve their performance.
Side Hustle Downsides
Others contend that side hustles are no panacea, but instead a necessary response to the reality that many Americans’ primary jobs don’t cover basic living expenses. Some argue that modern society’s celebration of hustle culture—emphasizing relentless productivity and ambition while undervaluing rest—can lead to burnout, chronic stress, and health issues. The unpredictable and unstable nature of side hustle work and fluctuating income can exacerbate these problems and the feeling of a lack of control in one’s life.
Many Americans view side hustles as a lifelong ball and chain:
- 28% believe they’ll always need the additional income source to make ends meet.
- 26% expect to continuously use it to cover discretionary spending.
- 20% don’t want to work a side hustle but feel they have no choice.
Why Entrepreneurs Suffer From Burnout
In his book Clockwork, Michalowicz argues that entrepreneurs suffer from burnout because they run their businesses using a hands-on approach. Hands-on entrepreneurs involve themselves in most aspects of their company’s daily operations. This includes everyday tasks (such as corresponding with customers) and related decisions (such as when to proactively contact customers). Even entrepreneurs who delegate daily tasks to their employees are hands-on, since these entrepreneurs still make most of the decisions behind those tasks.
Here’s some suggested reading content for preventing burnout:
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