Editor's Note: This story originally appeared on The Penny Hoarder.
Sometimes, your primary income just doesn’t cut it. Maybe your rent went up, or you’re trying to save for an expensive vacation. Whatever the reason, you may be relying on a secondary income.
If you’re currently — or considering — taking on a second job or side hustle, you’re in good company. Almost three-quarters of Americans rely on a secondary income for various reasons.
We’ll explore why, the pros and cons of a secondary income and how you can make a side hustle work for you.
Majority of Americans Are Relying on a Secondary Income
MyPerfectResume, a platform that helps workers create compelling resumes, surveyed 1,065 American workers and found a whopping 71% are relying on a secondary income.
Of that number, 39% ran side businesses or did freelance work, 32% had second jobs and 24% relied on earnings from their investments to supplement their primary income.
A staggering number of people don’t make enough at their primary job to support their financial goals. Survey respondents were motivated by the following:
- 42% wanted to pay off debt
- 37% wanted to save for a significant life goal
- 35% needed extra income to cover essential expenses like housing or food
- 29% wanted to build a financial safety net
- 23% wanted to pay for nonessential items
- 20% needed extra money to pay for childcare or school
This heavy reliance on secondary income is largely due to increased inflation rates that began in 2020.
According to data from Statista, the price of food increased 25.2% from February 2020 to July 2024, while housing costs went up 23.7% in that same period. Transportation costs also increased significantly, up 27.1% in that time frame.
These rising costs mean Americans spend more of their primary income on necessities and have less money to save or spend on nonessentials like vacations or entertainment. That makes them rely more on a secondary income, whether a second job or a side hustle.
The Pros and Cons of a Secondary Income
The biggest pro of a secondary income is the additional money. It can help you pay off debt faster, increase your savings and afford luxuries like a vacation.
And if you find a side gig you enjoy, you’ll essentially be monetizing your free time while doing work that doesn’t feel like work.
However, there are some downsides to relying on a secondary income.
The MyPerfectResume survey found 49% of respondents said their secondary income hurt their focus at work — and 21% said that they noticed a decline in their physical health caused by being overworked. Others reported the following cons:
- 16% sacrificed their hobbies or interests
- 16% sacrificed spending time with family and friends
- 13% reported feeling burned out and stressed
Only 11% of survey respondents said their secondary income did not affect their personal life at all.
Make Relying on a Secondary Income Work for You
Luckily, you can work a secondary income into your life without sacrificing your physical and mental health. Here’s how you can make a secondary income work for you.
Lean On Your Strengths
Consider where your strengths lie if you’re thinking about starting a side hustle.
Do you enjoy writing? Look for freelance writing or editing work.
Are you artistic? You could moonlight as a graphic designer or photographer.
Do you like to drive? Learn how to make money using your car by signing up to drive for DoorDash or setting up a carpool with your coworkers for a small fee.
Embrace Passive Income
Passive income is money you earn without taking on a second job or a side hustle. This income often comes from investments like stocks, bonds or real estate. If you’re already investing money, now could be the time to supplement your income with your investment earnings.
Other ways to earn passive income include renting out your home or car, getting a roommate, advertising on your car or renting out a parking space.
Monetize Your Hobbies
What do you do for fun in your spare time? Think about how you can make money from your hobbies.
If you enjoy crafting, you could set up an Etsy store to sell your crafts online. Love animals? Start offering dog-walking or pet-sitting services. And if cooking is your jam, you could do recipe testing or offer a meal-prep service.
Sell Your Stuff
Everyone has items lying around their home that they no longer need. But, as the saying goes, one person’s trash is another person’s treasure.
Are your bookshelves overflowing with novels you’ll never read? You can sell your used books online through a platform like Amazon, AbeBooks or BookScouter.
Did you inherit your great aunt’s collection of ugly vases? Get those puppies appraised and sell them for cold, hard cash.
And if your wardrobe is packed to the brim with clothes you no longer wear, consider selling them on Poshmark or ThredUp to give them a new life and fund your financial goals.
Set achievable goals
When you’ve decided how to make money, research the market to see how much you can expect to make, then set achievable goals.
If you’ve only recently started relying on a secondary income, you might not know how much money you can make. In this case, set time-related goals, such as spending a certain number of hours per week on your side hustle.
After a few weeks or months, you’ll have a better idea of your earning potential and can make goals around that if you prefer.
Avoid Burnout
When you’re chasing a secondary income, burnout is a genuine concern. Seek ways to simplify your life, such as the following:
- Make lists and use a calendar or day planner to keep track of your schedule
- Consider batch-cooking and freezing meals for easy dinners at the end of a long day
- Eat healthy foods and exercise as your time allows
- Take at least one day a week off to relax and recharge
- Schedule time with friends and loved ones regularly
- Prioritize sleep as much as possible, aiming for at least seven hours each night
- Prioritize your primary job to avoid affecting your performance and work relationships
Whether you rely on a secondary income to cover your everyday expenses or to save up for a large purchase, there are plenty of ways to make it work for you.
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