The Rise of Side Hustles in America
The traditional nine-to-five job is no longer sufficient for many Americans as the cost of living continues to climb. Even individuals with full-time careers in high-paying fields like real estate and technology are turning to side hustles to manage their expenses and maintain financial stability.
According to Kira Caban, a flexible work expert and head of communications for Instawork, there has been a noticeable increase in people seeking side hustles to build financial security during uncertain economic times. Instawork connects businesses with temporary and full-time workers, and Caban highlights that younger generations are leading this trend.
Two years ago, only 20% of new signups on Instawork were between the ages of 18 and 24. This number has now risen to 40%, showing a significant shift in how younger individuals approach their financial future. Flexible work options are helping people cover rising costs of daily essentials while still allowing them to enjoy life without depleting their savings.
A March survey by LendingTree found that 40% of Americans have a side hustle, with 61% of those who do stating that their life would be unaffordable without it. Matt Schultz, chief credit analyst at LendingTree, emphasized that life has become increasingly expensive in 2025, making a single job insufficient for many.
Approximately a third of side hustlers started their additional income streams due to cost-of-living expenses, while 29% say they need the money for bills and 28% use it for discretionary spending. Almost half of those surveyed cited the current economy as the main reason for starting a side hustle.
Despite the challenges, side hustles offer several benefits. They can help individuals build emergency savings, pay down debt, and work toward long-term financial goals. Additionally, they serve as a safety net if the primary source of income is lost.
Jenny Turley, a real estate agent from Chattanooga, Tennessee, experienced a period where she had to work three jobs. She found solace in quilting, which helped her manage stress during chaotic times. After her husband had a stroke, Turley used her quilting skills to generate extra income.
“I went from everything being perfect to the weight of the world on my shoulders,” Turley said. “I was worried about how we would make it through this event financially.” Through quilting, she managed to keep her mind focused and eventually started selling her creations. Her business grew through word of mouth on Nextdoor, a local social networking platform.
Dani Maczynski, a tech worker in New Jersey, also turned to a side hustle to cover life expenses and save for the future. She walks dogs, pet sits, and offers overnight boarding services. For Maczynski, every dollar earned is a step toward long-term growth.
“Shifting my mindset to see every dollar as a tool for long-term growth has been empowering,” she said. “What started as a short-term side hustle has become part of a bigger financial strategy.”
While side hustles offer valuable opportunities, Schultz cautions that they are not a guaranteed solution. They often require an initial financial investment and success is not guaranteed. However, he emphasizes that people should not shy away from them but instead approach them with a clear understanding of what is involved.
Overall, the rise of side hustles reflects a broader shift in how Americans are managing their finances in an increasingly unpredictable economy. Whether for survival or growth, these additional income streams are becoming essential for many.
