More and More People Are Resorting to Side Jobs and We Know The Real Reason Why

People are often thought to take on ‘side hustles’ as a means to pursue a hobby outside of their regular job. However, the grim reality is that they’re resorting to do multiple jobs out of need.

The Gig Economy

People often take on app development or graphic design projects to earn supplemental income and meet financial goals

According to statistics from Betterment, an online investing platform, an estimated 70% of people who work more than one job do so because of financial reasons like a shortage in retirement funds, for example. The number was derived from a survey of 1,000 people working in the ‘gig economy’.

Meanwhile, Kate Bronfenbrenner a labor education research director at Cornell University, went as far as to say that working side jobs is something that’s being forced on individuals. Around 25% of people who take on side jobs while also working a full-time job say that they don’t even have $1,000 set aside for their retirement.

This decision to work multiple jobs only becomes even more common and crucial as a person ages. In fact, three-quarters of people over the age of 55 who work ‘gigs’ to help them save up for their nearing retirement. Unfortunately, a majority of the same group of people say they’re still unprepared and would still need to work more for the future.

The Debt Factor

Working multiple jobs is a way for people to pay off the expensive cost of their student loan debts

Aside from saving up for the future, people with side jobs also cite debt as an important factor in their decision to take on additional work. A lot of people are seeking to deal with various kinds of debts from student loans to credit card debts to mortgages.

There are also those who need more than one job to even afford paying their bills. Financial planner Nick Holeman observed that picking up another job may be easier for some people than changing their spending habits or downsizing their lifestyle.

Worrying Statistics

Credit card interest rates have risen continuously within the past two years

However, the problem of debt seems to affect more than just people who work multiple jobs as the American population further goes deeper into the red. The Federal Reserve reports that for the first time, outstanding consumer debt alone has surpassed the $4 trillion mark.

Contributing to this number are the rising cost of automobile financing as well as the increase in student loan balances. It was also found that people are paying 10% of their income towards debts like personal loans, auto loans, credit cards and student loans.

There’s also the fact that interest rates for credit rates current stand at 17.41% compared to last year’s 16.15% and the year before that’s 15.22% which might only make it more difficult for people to pay off their credit debt.