What Are Side Hustles and Why Are They So Popular?

Side hustles are a great way to make some extra income

• Side hustles are taken up to supplement an individual’s income. Primarily, side hustles taken up to help an individual make ends meet, accelerate growth in their savings or just for the fun of it!
• A lot of the most popular side hustles today didn't exist in pre-internet times. Technology has removed a lot of the barriers to entry for part-time work.
• It’s important to evaluate your lifestyle to decide if a side hustle is for you, as they are not for everyone for various reasons.

Nowadays, many people are working more than just their 9-5 jobs. They’re also taking up side hustles, defined as an additional job taken on the side of the main occupation. It presents a way of earning extra income. In this article, we’ll share the different motivations for setting up a side hustle and also why you maybe shouldn’t pursue a side hustle.

Why the Rising Popularity of Side Hustles? 

• The most popular reason is to increase personal wealth. Unfortunately, requiring more than one source of income is a necessity for an increasing number of people. The COVID-19 pandemic has changed people’s lives dramatically, leading to a sharp increase in the necessity of side hustles for many. During the pandemic, many people have assessed how vulnerable they are to financial disaster if their sole source of income were to disappear. As a result, many are trying to diversify their income with a side hustle. 

• Raising income to pay off high-interest debt. We recommend paying off high-interest debt as soon as possible! 

• Financing an emergency fund. A great use of additional income! Everybody must have an emergency fund of some sort. 

• Improve savings rate. This could be for retirement or other long-term financial goals, such as a child’s tuition fund. Those who improve their savings rate early on, before other family commitments kick in, will benefit more from compound interest. As a result, they can retire earlier and hit their retirement fund target with fewer savings compared to saving more but starting later. 

• Increase the amount of money going into investments. Getting extra income from a side hustle can allow you to start investing and grow your assets. 

• Monetizing an existing hobby of yours. What’s better than being paid to do something you love? If the sourdough bread you’ve been baking throughout the pandemic has been getting stellar reviews from your friends, then why not earn a bit of dough from selling it? 

• Save up for travel. Unfortunately, vacations do not fall into the ‘essential needs’ category of your budget, so using side hustle income to fund travel is a sensible approach as you can focus your main source of income on essential needs.

• Becoming a better citizen. Working part-time for a socially good cause, such as at a care home, allows you to not only increase your income but also give back to your local community.

The Time Is Now

Arguably, it has never been easier to set up a side hustle. The rise in social media and digital platforms has presented a wave of new side hustle opportunities, such as content creators, DIY crafters or bloggers. 

The free-market gig economy has exploded in recent years, presenting unprecedented opportunities for individuals to work as independent workers. Gig economy workers can enjoy levels of flexibility not seen before in certain sectors, such as drivers for ride-hailing apps like Uber and Grab in the taxi industry.  Gig economy companies have utilised technology to remove a lot of the traditional barriers to entry for part-time work, which has allowed the side hustle community to thrive!

There are lots of reasons to have a side hustle and lots of ways to go about it. Opportunities are out there, but you’ll need to put in the work to find out the types of side hustle that you could take on – not everybody can manage a side hustle. 

WHAT ARE SIDE HUSTLES? COMPLETED. ✅

Sources:

1. https://www.cnbc.com/2018/09/28/people-start-a-second-business-for-a-lot-of-reasons-but-mostly-its-this-one.html 
2. https://mms.businesswire.com/media/20180925005605/en/680213/1/TheHartford_Side_Business_Survey_InfographicFINAL.pdf 
3. https://www.usatoday.com/story/sponsor-story/godaddy/2017/12/12/how-people-side-hustling-around-globe/108532604/