From delivering takeout orders and walking dogs to launching small businesses and consulting, Americans are putting in long hours outside their primary jobs. According to a recent Bankrate survey, nearly two in five U.S. adults (39%) currently have a side hustle.
A side hustle, by definition, is work done in addition to one’s main source of income — whether that’s a full-time job, a business, a pension, or other earnings. And for many people, this isn’t about earning “fun money.” Amid inflation and fears of a potential economic downturn, side hustle income often covers essential living costs rather than discretionary spending. In fact, 33% of side hustlers say they need the extra money to pay regular bills, far outpacing the 27% who use it for leisure purchases.
Key Takeaways from Bankrate’s Research
- Average monthly income from a side hustle: $810
- Primary use of side hustle income: 33% for living expenses, 27% for discretionary spending, 25% for savings, 12% for debt repayment
- Most impacted group: 42% of side hustlers earning under $50,000 annually say they rely on the income for basic needs
- Long-term expectation: 28% believe they’ll always need a side hustle to cover expenses
Who’s Side Hustling in 2023?
Bankrate’s data shows that younger Americans are the most active in the side hustle economy:
- Gen Z (ages 18–26): 53% have a side hustle
- Millennials (ages 27–42): 50%
- Gen X (ages 43–58): 40%
- Baby boomers (ages 59–77): 24%
Men are also more likely to have extra income streams, with 43% reporting a side hustle compared to 35% of women.
When broken down by household income, the difference between brackets is smaller than expected:
- $100,000+: 45%
- $80,000–$99,999: 35%
- $50,000–$79,999: 39%
- Under $50,000: 40%
How Much Do Side Hustlers Earn?
While it’s possible to make a significant amount from a side gig, most people earn far less than $1,000 per month. The average is $810, but:
- 28% make only $1–$50 monthly
- 14% earn $51–$100
- 15% bring in over $1,000
Men tend to make more than women from their side hustles — $989 per month on average versus $603 for women.
By generation, the breakdown looks like this:
- Millennials: $1,022/month
- Gen Z: $753/month
- Gen X: $670/month
- Baby boomers: $646/month
Why Americans Are Side Hustling
For 33% of side hustlers, the extra work is essential for covering basic living expenses. Other motivations include:
- 27%: Discretionary spending
- 25%: Building savings
- 12%: Paying down debt
Women are more likely than men to use this income for essentials (37% vs. 29%). Men, however, are more likely to direct it toward savings (29% vs. 21% for women).
Income level plays a big role in how side hustle money is spent:
- Under $50,000/year: 42% use it for living expenses
- $100,000+/year: Only 22% use it for essentials, while 38% use it for discretionary spending
According to Bankrate Senior Industry Analyst Ted Rossman, the trend is a sign of how inflation continues to pressure household budgets:
“I’m a big fan of using a side hustle to pay off expensive credit card debt or to boost your savings or investments. A side hustle can also be a great way to pursue an activity or potential career path that you’re interested in. Unfortunately, our research shows that people are much more likely to be pursuing a secondary source of income just to keep their head above water.”
Will Side Hustles Ever Go Away?
For many Americans, the answer is no.
- 28% believe they’ll always need a side hustle to make ends meet
- 26% expect they’ll always want one for extra spending money
- 19% hope to eventually turn their side hustle into their main income source
Inflation has shifted how people view their extra work:
- 23% are dedicating more time to side hustles because of rising prices
- 10% are cutting back on side hustle hours due to inflation
- 20% say they don’t want to work a side hustle at all, but they have no choice
Three Ways to Make the Most of Extra Income
Not everyone uses their side hustle earnings for bills. In fact, 67% say they put the money toward other goals. Here are three smart uses for extra funds:
- Build an Emergency Fund
Aim for three to six months of expenses in a high-yield savings account for better interest and quick access. - Pay Off Debt
Free yourself from high-interest obligations using either the debt avalanche (highest interest first) or debt snowball (smallest balance first) method. - Reward Yourself
Whether it’s a short trip, a night out, or a hobby you’ve wanted to try, using part of your side hustle income for enjoyment can make the hard work feel worthwhile.
The Takeaway
Side hustles have moved far beyond being a temporary way to make extra cash — for millions of Americans, they’re now a permanent part of financial survival. As inflation, debt, and economic uncertainty persist, multiple income streams are becoming less of a luxury and more of a necessity.