Key Points:
– More than a third of Americans rely on income from a side gig to cover their expenses.
– Depending solely on side gig income can lead to burnout or financial instability.
– Broadening your skills and exploring new work opportunities can help you meet your financial needs.
– A suitable cash back credit card can provide significant rewards annually with perks such as up to 5% cash back, a $200 bonus, and no annual fee. Click here to apply now (Sponsor).
In the past, taking on a side job was often a way to earn extra money for specific goals like buying gifts or saving for a dream purchase. However, the landscape has shifted significantly. According to Bankrate’s 2019 Side Hustle Survey, a surprising 37% of individuals with side gigs are now using that income to cover everyday living expenses. This change has transformed side gigs from optional ventures to vital sources of income that can last for years, causing stress and time constraints for many.
The trend of relying on side gigs to cover bills raises concerns about sustainability. While this approach may seem like a solution to financial challenges, it comes with significant drawbacks. Side gigs typically offer unpredictable income, lower wages, and lack benefits like paid leave or workers’ compensation. Additionally, the extended commitment to side work may lead to burnout, impacting overall well-being and quality of life.
Despite the risks associated with side gig reliance, many people are turning to this option due to stagnant wage growth, outdated minimum wage standards, disappearing jobs in the middle class, and demanding job requirements with minimal compensation. Economic factors like post-pandemic inflation and soaring college costs further limit opportunities for financial advancement.
While the causes of these economic challenges can be debated, the reality is that many individuals are facing financial struggles and turning to side gigs as a coping mechanism.
If you’re depending on a side hustle for extra income, it’s important to diversify your sources of income to safeguard against instability. Instead of relying solely on one type of side job that may not always be available, consider exploring different ways to boost your earnings. Developing a broader skill set can also enhance your chances of securing a higher-paying job that meets your financial needs. Additionally, reducing expenses, such as downsizing to a more affordable living arrangement, can create more financial flexibility. Consulting a financial advisor can provide valuable insights on managing your regular job income and maximizing your earnings from side gigs to enhance your financial security in the long run.
