Nearly Half of Americans with Side Hustles Work Less, Earn More Than Salaried Position, Survey Finds

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According to a 2024 survey by Quicken, 72% said they feel more financially secure with more than one source of income. The same study found that 43% of Americans with a side hustle work fewer hours and make more money than in a single salaried position. 

For many people, side hustles help them pay off their debts. Eighty-four percent of those with side jobs said they've been in debt before, and almost a third are using their extra income to pay off their current debt.

This growing trend highlights the increasing appeal of diversifying income streams to gain financial stability and freedom.

"This new data highlights a group of Americans turning to contract work and side hustles to creatively supplement their income. This is allowing them to address other elements of their financial situation, including paying down debts, saving for major purchases, and more," said Eric Dunn, Quicken CEO.

The survey showed that younger people, especially Gen Z (50%) and millennials (48%), are more likely to say they work fewer hours but make more money with side jobs, compared to only 34% of older generations like Gen X and baby boomers. In short, younger generations are finding ways to earn more money in less time through side hustles compared to older generations.

Among those working fewer hours and earning more, 82% said having more than one income source keeps them from struggling with money every month. Over half (57%) even have enough savings to cover over four months of living expenses in case of an emergency. This is important because most Americans (66%) are living paycheck to paycheck, according to another survey by MarketWatch.

According to the survey, 20% of respondents were in personal assistance. It involves supporting individuals or businesses by handling tasks like scheduling, managing emails, booking appointments, running errands, organizing events, or performing administrative duties.

Depending on the client's needs, this side job can be done virtually (as a virtual assistant) or in person. It’s flexible and often remote, making it a popular option for those looking to earn extra income while managing their own schedule.

Sixteen percent of Americans who participated in the study have a side hustle that involves cooking and baking. This can include having a home bakery or seasonally selling baked goods for festivals or celebrations.

Another 16% of people in the study have caregiving side hustles. This job involves helping others with tasks like child care, elder care, or supporting individuals with special needs, often in addition to their regular job. It can also include pet care and sitting services.

About 21% of this group say they run their own businesses, such as selling products online, running a catering service, or offering photography services. A significant portion of people with side hustles are entrepreneurs, using their skills to build small businesses in various fields.

Many people with multiple income streams feel more financially secure and experience less stress, thanks to their side hustles. As the economy faces challenges, more Americans may consider side hustles as a way to strengthen their finances.

Younger generations use their extra income to pay off student loans, while others save for goals like vacations, cars, retirement, or buying a home. Having a side hustle also helps people become more aware of their spending and saving habits.

Side hustles offer a valuable opportunity for anyone to take charge of their financial future. They provide a path to independence and stability, whether to pay off debt, save for future plans, or simply gain financial peace of mind.