Money determines our quality of life; sometimes, having just one job isn't sufficient to meet our needs in today's fast-paced economy. Although Gen Z and Millennials are often stereotyped as lazy, many of them choose to work a side hustle instead of relying solely on traditional employment for their income. But why do these “lazy” people start working a second job?
Why are side hustles are becoming the norm?
The primary motivation behind the surge is the rising cost of living and economic uncertainty exacerbated by the COVID-19 pandemic. Many young people struggle to cover their expenses with just their primary job, especially with many layoffs after the pandemic and the inflation. Additionally, they are often faced with the desire to invest in homeownership or starting a family amidst these financial challenges.
So it's not surprising that many individuals turn to side hustles to fill their spare time. You might wonder, how do these Gen Z and Millennials have extra time to work another job. Surprisingly, less than 3 in 5 (58%) of them are employed full-time, leaving them with ample additional time to pursue supplementary sources of income.
For many people, side hustle offers a platform to explore their passions and turn their hobbies into profitable ventures. For example, someone who loves photography might start a side business offering portrait sessions or selling prints online. Similarly, individuals with a knack for crafting might create handmade goods to sell on platforms like Etsy. These opportunities provide additional income and allow them to engage in activities they genuinely enjoy.
By diversifying their revenue streams through side hustles, people can broaden their professional network and gain essential skills that can lead to new job prospects. A freelance graphic designer, for example, may refine their design talents and create a portfolio that would appeal to potential clients or employers in the creative area via the online freelance platforms Upwork or Fiverr. 45% of young hustlers would consider turning their side hustle into a full-time job if it paid the same as their present full-time job.
But...What happened if their Side Hustles disappeared?
But what if they were requested to return to their previous lifestyle after launching their side hustle? It is easy to go from frugality to extravagant, but difficult to go from extravagance to frugality. To adjust to the loss of supplemental income, they would certainly have to make
significant lifestyle changes, such as cutting back on discretionary spending like dining out with friends, travel during long weekends, and entertainment.
While these endeavours provide prospects for financial freedom and personal fulfilment, relying on several cash streams to make ends meet may leave little money for unexpected expenses. This may not appear substantial in youth, but it gets more noticeable with age. Before starting a side hustle, consider the opportunity cost of the time put in it. However, it is always a good idea to explore new things while you are young!
Comments