The majority of Americans have some form of side hustle — and it’s not only because they want to put a little extra spending money in their pockets. A recent survey of 1,000 U.S. adults conducted by SideHustles.com found the No. 1 reason people get a side gig is to afford groceries and household essentials.
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Nearly two-thirds of respondents (62%) spend at least half of their side hustle income on basic needs, while about one-third have skipped paying for essentials in the past 12 months despite working multiple jobs.
Inflation Impact
Roughly two-thirds of side hustlers juggle multiple gigs, according to SideHustles.com — and nearly half of them plan to take on more gigs this year. That’s the case even though more than one-third feel “overwhelmed or burned out” from having to juggle multiple income streams.
The main reason so many Americans are working side hustles is to keep up with rising prices. Nearly six in 10 (59%) respondents in the survey said they began working side gigs due to “financial stress or cost-of-living increases.”
Although inflation has slowed from previous years, prices on many essentials are still pushing higher.
Overall inflation rose 2.9% in August, according to the U.S. Bureau of Labor Statistics. The core consumer price index — which excludes energy and food costs — climbed 3.1%.
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What Else Is the Money Used For?
More than one-third of respondents said they need the money to cover rent or mortgage payments. About 10% need it to cover healthcare or insurance costs.
Here are some other highlights from the survey:
- Among side hustlers earning $40,000 or less, 75% rely on side gigs for groceries and other essentials. That compares to 60% or less among higher earners.
- Gen X side hustlers are the most financially strapped, with 45% saying most of their gig work income goes toward basic needs.
- About two-thirds of side hustlers spend 15 hours or less per week on their hustles. Side hustlers with three or more gigs spend upwards of 30 hours per week, while those with four or more gigs were most likely to work 40 hours or more a week.
- Nearly half of those earning less than $40,000 a year have skipped paying for essentials over the past year.
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This article originally appeared on GOBankingRates.com: Troubling Trend: 62% of Side Hustlers Rely on the Income for Essentials Alone
