Why Side Hustles Are Becoming The New Normal

Side hustles are thriving in today’s challenging economy. According to a new study conducted by One Poll on behalf of Herbalife, 40% of Americans are turning to side hustles. And of those with a side gig, 48% started it solely to make ends meet. With increased expenses, it’s not surprising that people want to be less reliant on a single source of income. “The rising cost of living is causing Americans to fall behind on their monthly bills,” said Humbi Calleja, Herbalife vice president and general manager for North America. “More people are turning to direct selling opportunities to ease the financial strain.”

But it’s not just the need to keep up with inflation that is spurring the side hustle boom. For some, it offers the ability to work on a passion project. For others, it provides networking opportunities or the chance to socialize and meet new people. Remote work and hybrid schedules also make it easier for people to start a potentially profitable side business.

In some cases, a side hustle could become so lucrative that it eventually becomes a full-time gig. But even if you keep your day job, a side project can help you pay down debt, save for a down payment on a home or even earn passive income. Here are five reasons the side hustle industry is flourishing without showing signs of slowing down.

Workers need extra income

In addition to keeping up with inflation, many workers are underpaid. For example, the median hourly rate in the service industry is $12.49, according to the Bureau of Labor Statistics. In fact, 44% of workers in North America believe they are underpaid based on the ADP 2023 People at Work survey. When you compare state minimum wages with the average living wage for one adult with zero dependents, according to MIT’s Living Wage Calculator, no state offers a minimum wage that a person can live on. As a result, to keep up with their expenses, a lot of people are turning to side hustles.

Non-linear careers are the future

With a rapidly evolving workplace and people working longer, lifetime employment at a single job is becoming a thing of the past. Automation and AI are ushering in a new world of work. That means that over the next decade, companies will be looking for competencies that don’t currently exist. In that case, a side gig is a great way to add to your skill set, making you more competitive in the job market. A side hustle can also help you hone your networking abilities and build confidence. Feeling self-assured makes it easier to remain resilient and navigate an ever-changing employment landscape.

AI makes side hustles more lucrative

When you engage in a side project, time is of the essence. That’s why many side hustlers are turning to generative AI tools like ChatGPT and Google Gemini to save time and money. They are free, simple to use and easy to access. Some ways you can use AI to benefit your side hustle include:

Social content: AI can help you generate social content based on your target audience.

Market research: To improve your decision-making, you can ask questions about market trends.

Course creation: AI can provide title recommendations, generate a lesson outline and craft a powerful course description.

Side hustles make career change possible

Have you considered making a career change but are reluctant to take the leap? A side project allows you to try out a new career without the risk of leaving your day job. It’s also a great way to test out that groundbreaking idea you’ve been dreaming about for years. If you’re pursuing an entrepreneurial career, a side gig allows you to build a client base. Plus, you can make a bit of extra money along the way, providing a financial cushion when you finally decide to make the transition.

Side hustles promote social interaction

While remote work has its benefits, one drawback is a feeling of isolation. In a report from U.S. Surgeon General Dr. Vivek H. Murthy, he warned of an “epidemic of loneliness and isolation” exacerbated by the pandemic. In Buffer’s 2023 State of Remote Work report surveying 3,000 global remote workers, 23% reported loneliness as an issue. A side hustle can help combat these feelings of disconnect by offering opportunities for social interaction. For example, if you sit in front of a computer all day, being an Uber or Lyft driver might be an appealing side hustle. Some other examples of side gigs that promote social connection include dog walkers, personal assistants and tutors.

Whether you’re trying to pursue a passion or save for your kid’s college fund, side hustles have many perks. In addition to earning extra money, they can help you learn new skills, try out a new career or network with people who share your interests. With a relatively low upfront investment and a potentially significant upside, the question isn’t whether to start a side hustle. Instead, the question is, why not?

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