The term “side-hustle” gained popularity in the 1950’s, and was officially added to the dictionary in 2022. Since then, we’ve only seen an increase in the usage of this term, which reflects the growing number of people who have a side-hustle. But realistically, how common is it to have a second job or business, and are these side-hustles here to stay, or simply a capitalistic trend?
You might be surprised to find out that over a whopping 40% of Americans have some kind of spare-time job, with everything from driving for delivery services to making content being ways to earn extra cash. This is also exemplified with trends like “my 5-9 before my 9-5”, where social media creators showcase how they maximize their morning (or evening) hours and how they’re spending the time outside their normal workday. These types of videos have garnered millions of views, and point to the ideal that people are taking back their time and power by intentionally choosing how to spend time outside their day job—and cashing in on it, too.
Related: 30 easy side-hustle ideas to start from home
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While nearly half of people do partake in some kind of side-hustle, the reasons for doing it are varied. Perhaps one of the most common and obvious motives is to make more money. With inflation and credit card debt holding at a steady high, while savings accounts are down, it’s no wonder that people are reaching towards alternate means of funding their lifestyles. The usual 9-5 paycheck that once had the potential to cover all your living expenses while still leaving room for a vacation budget and debt repayment now isn’t going as far. Rather than give up in defeat, people are increasingly taking matters into their own hands when it comes to their financial well-being.
Passing phase, or lasting change?
Despite the economy having some rough turns, the number of people filing for a new business last year hit an all time high, which is opposite of the expected and historical pattern: when the economy is down, so are new and emerging businesses. Interestingly, 44% of people who started a new business last year did so while having another job already—in other words, almost half of this entrepreneurial cohort are doing so as a side-hustle. Perhaps a main reason why so many people are deciding to take the leap and start a new business, even with the current state of the economy, is that they’re driven by gains that aren’t just monetary.
During 2020 when the world was launched into the realms of Zoom and virtual engagement, it became starkly obvious how important social interactions are to overall health and well-being. For some though, a return from work-from-home to the previous more social workplaces didn’t happen. Side-hustles are a way for some folks to have these meaningful interactions and to socialize without depending on their day job for it.
Another prominent reason that people are turning to side-hustles is as a way to express creativity and share their interests or gifts with others. Passions and hobbies turned to courses, coaching, and paid artistry can check multiple boxes for extra cash flow and creative fulfillment.
The reasons why are plentiful, and and so are the opportunities that come with having a side-hustle, especially when you consider the possibility of a side-hustle turning into a full time job and business. (And many are making it big from doing that, too.) Platforms like Teachable make it easier than ever to share what you know with an audience, and to make extra money while doing it, without needing to figure out all the technical details around it.
The shift in data over the last four years shows more people than ever leaning towards entrepreneurship, (especially millennials and Gen Z) coupled with the financial, creative, and social opportunities that it brings, indicates that side-hustles are here to stay. Consider the relative safety of starting a side hustle: many of these can be established with low overhead and without needing to quit your day job (and forgo the financial security that comes with it), resulting in a low-risk, potentially very high-reward situation. With this in mind, it’s no wonder that an increasing number of people are opting for this route, and it’s likely we’re only in the beginning stages of the side-hustle era.
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