According to Bankrate.com, 45% of working Americans (roughly 70 million people) had a side hustle as of the end of 2020. This number is as high as 50% for millennials (those born between 1980 – 1995). Online productivity app firm Zapier.com estimates this number rose by another 15 million in 2021.
The biggest reason people choose to start a side hustle is for the extra money. Roughly 60% of side hustlers report that the extra money they earn goes toward savings or additional disposable income. Another 30% report needing the money for bills or to reduce debt.
It might be tempting to believe people who start a side hustle are dissatisfied with their “day job,” yet 76% report that they love their primary job. There is also strong evidence that a side hustle can actually boost your full-time job performance The reasons for starting a side hustle are (as reported in order):
- More personal freedom
- More income to save, spend, or invest
- More money to make ends meet
- Pay off debt faster
- A creative outlet or “a calling”
The average side hustle brings in over $1,000 a month. While your mileage may vary, there are many ways to bring in extra income, and each avenue presents different levels of income opportunity. Some of the more popular side hustles inlcude:
- Online businesses (blogging, podcasting, offering online courses, affiliate marketing)
- Freelancing and consulting
- E-commerce, including drop-shipping (Amazon, eBay, Etsy, or your own online store)
- Investing (real estate, cryptocurrency, stocks, etc.)
- Self-publishing (ebooks, articles, Kindle books, etc.)
- Local services (residential or vacation rental cleaning, knife sharpening, pet sitting, lawn maintenance, etc.)
- YouTube
- Software/App development
- Gig Economy jobs (Uber, DoorDash, etc.)
55% of people surveyed said they’d like to turn a hobby into a business, and 27% of full-time workers have already started making money from a hobby. (Of course, once you turn a hobby into a business, you’ll need to find a new hobby!)
Even though the Omicron variant of COVID-19 is rampaging around the world, there is much evidence that it’s a less severe variant, and economists are predicting that 2022 could be the year the world moves past lockdowns and restrictions as more therapeutics and over-the-counter treatments become available. This signals that 2022 may present a variety of opportunities to earn additional income.
Because of the numerous possibilities for creating a profitable side hustle, we’re declaring 2022 the “Year of the Side Hustle.” We’ll be posting articles and other content loaded with ideas and inspiration for starting a side hustle that works with your skills, budget, available time, and other resources. As always, Sequoyah Fund stands ready to help you with funding, counseling, training, referrals, and other resources you’ll need to be successful.
Happy Hustling!