Latest news with #sidegigs
Yahoo
2 days ago
- Business
- Yahoo
38% of Americans have taken on jobs to cover debts — how the rise of the reluctant hustler is rewiring careers
With consumer household debt hitting record highs, more Americans are picking up extra work to cover bills and becoming reluctant hustlers. A new survey from AI-powered career platform Zety found that 38% of respondents have taken on side gigs or second jobs to make extra money and keep up with their debt. The online poll of 1,005 U.S. employees was conducted by Pollfish. Don't miss Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast) Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Not one respondent reported being debt-free. In fact, 43% said they're carrying more than $25,000 in debt, and one in five said they owe at least $100,000. That's why some Americans are 'taking on side jobs for extra cash, accepting roles they don't want, and making urgent trade-offs to manage their financial obligations in an increasingly volatile economy,' according to the report. The rise of the reluctant hustler This trend lines up with other data about the labour market. The number of Americans holding multiple jobs steadily increased from 2010 to 2020, according to the Federal Reserve Bank of St. Louis. After a dip during the pandemic, those numbers have bounced back to record levels. And this rise in side hustles isn't slowing down. A Harris Poll for the American Staffing Association (ASA) found that more than six in 10 employed U.S. adults say they're likely to pick up extra work in the next year.' 'For growing numbers of Americans, a side hustle can be a good way to build savings, pay off debt, find a new job, or change careers. However, for others, a side hustle means having enough money to make ends meet,' said Richard Wahlquist, CEO of ASA, in a release. 'With economic uncertainty dominating the headlines, it's not surprising to see Americans looking for ways to create some breathing room in their budgets.' Zety's survey also found that most respondents are shifting their financial habits to manage debt and prepare for potential fallout from U.S. policy changes. Nearly four in five (78%) believe tariffs will make it harder to repay or avoid debt. To cope, 38% said they've cut back on non-essential spending and 25% have increased their minimum payments. Others reported transferring balances (13%), delaying repayment (14%), consolidating debt (8%), refinancing (5%), seeking financial counseling (5%) or negotiating with lenders (4%). Meanwhile, U.S. consumer confidence continues to deteriorate across most age and income groups, according to The Conference Board's Consumer Confidence Index. And despite inflation cooling, real wages haven't seen much growth over the past decade. From May to June, real average hourly earnings dipped 0.1%, according to the Bureau of Labor Statistics. Stagnating wages and fears of rising costs from tariffs and trade disputes are putting added strain on American households. Read more: Americans are 'revenge saving' to survive — but millions only get a measly 1% on their savings. Debt is carving new career paths Student loans, medical bills and credit card debt are forcing many workers to take jobs outside their skill set, accept precarious roles or put their career ambitions on hold. Debt isn't just pushing Americans toward side hustles; it's also influencing work and career choices. A Harris Poll conducted for ASA in August 2024 found that 73% of American workers are in debt, and 40% of them said their debt is influencing their career choices. Roughly a third of Zety's respondents said they've taken jobs they didn't want or were outside of their industry to manage debt. Another 17% said they would start a business, return to school or freelance if they weren't carrying debt. 'Debt is a growing force behind why people take certain jobs, stay in roles longer than they'd like, or hesitate to make a career pivot,' Priya Rathod, a career trends expert at job site Indeed, told CNBC. And the pressure isn't likely to ease any time soon. Household debt remains at record highs, and debt service payments as a percent of disposable income are creeping back up from historic lows. But before jumping into a side hustle, it's worth taking a hard look at the math. According to the Federal Reserve, workers with multiple jobs put in 174 more hours a year than single-job workers, yet earn $1.01 less per hour on average. That adds up to just $900 more annually. 'People really need to understand that working more hours is a short-term solution, and growing your main income is a long-term strategy,' Rathod told CNBC. If your side hustle brings in good money, it might be worth the extra effort. But if it's low-paying or unstable, you may be better off focusing on your current job, asking for a raise, pursuing a promotion or even changing careers altogether. What to read next Robert Kiyosaki warns of 'massive unemployment' in the US due to the 'biggest change' in history — and says this 1 group of 'smart' Americans will get hit extra hard. Are you one of them? How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you'll need a substantial stash of savings in retirement Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Forbes
10-07-2025
- Business
- Forbes
Avoid Unexpected Tax Bills: Essential Tips for Side Hustlers in 2025
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. As inflation drives up the cost of almost everything, more Americans are turning to second jobs or weekend side gigs —whether driving for Uber after work or selling handmade crochet dolls online. While the extra income helps cover rising expenses, many people don't realize the tax responsibilities that come with side gigs. If you're unprepared, you could face a surprise bill from the IRS . According to Bankrate's latest Side Hustle Survey, 27% of U.S. adults currently juggle a side job alongside their primary employment, down from 36% in 2024. But even with that slight dip, a LendingTree survey shows that nearly 40% of Americans rely on side hustles, and 61% say life would be unaffordable without the extra income. Now, some good news could be coming for gig workers: Starting in 2026, the One Big Beautiful Bill will bump the qualified business income (QBI) deduction from 20% to 23% for pass-through entities like sole proprietors and partnerships. That means a bigger tax break is on the horizon, but staying sharp about your 2025 taxes is still essential for now. Here are some ways to avoid future tax trouble. Track all your income. Whether you're freelance writing, driving for Uber, selling items online or tutoring, log every dollar you make. Use apps or simple bookkeeping tools to stay organized and make tax time way less painful. Whether you're freelance writing, driving for Uber, selling items online or tutoring, log every dollar you make. or simple bookkeeping tools to stay organized and make tax time way less painful. Understand your side gigs. Freelance work can cover many hustles, from dog walking to delivering food. Each type has its own tax details, so keep your income streams separate and know the specific rules for your hustle. Freelance work can cover many hustles, from dog walking to delivering food. Each type has its own tax details, so keep your income streams separate and know the specific rules for your hustle. Save receipts and track expenses. One of the perks of side gigs is deducting business costs, like your home office, software, supplies and mileage. One of the perks of side gigs is deducting business costs, like your home office, software, supplies and mileage. Set money aside for taxes. A good rule of thumb is to save about 25 to 30% of your earnings for taxes. Putting aside cash as you go makes it way easier to pay quarterly or file your taxes without stress. A good rule of thumb is to save about 25 to 30% of your earnings for taxes. Putting aside cash as you go makes it way easier to pay quarterly or file your taxes without stress. Pay quarterly estimated taxes. If you make over $400 from side gigs, you'll likely need to make estimated payments four times a year. This helps you avoid a large tax bill in April. When it comes to side gigs, income isn't just what you get from a big client or weekly Uber payout. The IRS wants to know about all the money you make—even if it feels small or casual. That includes income from: Freelance jobs. Whether you tutor, write, take photos or work as a virtual assistant, this is income you must report. Whether you tutor, write, take photos or work as a virtual assistant, this is income you must report. Cash payments. Yes, cash payments can be taxable, even if you're paid under the table. Yes, cash payments can be taxable, even if you're paid under the table. Peer-to-peer apps. If you're paid for services through Venmo, Zelle, Cash App or PayPal, you still need to report it. If you're paid for services through Venmo, Zelle, Cash App or PayPal, you still need to report it. Online sales. Selling on different platforms like Etsy, Depop and Poshmark all count, especially if you're doing it regularly. Selling on different platforms like Etsy, Depop and Poshmark all count, especially if you're doing it regularly. Barter work. If you trade a service (e.g., website design) for something else (e.g., free yoga classes), the fair market value of what you received is taxable. If you trade a service (e.g., website design) for something else (e.g., free yoga classes), the fair market value of what you received is taxable. Platform payouts. Uber, DoorDash, Instacart, Airbnb and other platforms often issue 1099s. Even if they don't, you must report what you earned. New IRS rules for 2026 mean even small transactions might trigger a 1099-K form from apps like PayPal or Etsy if you hit the $600 threshold. But even if you don't receive a form, you still have a legal obligation to report that income. The good news about side gigs is that you can lower your taxable income by writing off legitimate business expenses. But you need to stay organized and be honest about what qualifies. Here's what you can usually deduct: home office phone and internet bills mileage and car expenses software and subscriptions supplies and equipment And here's what you can't deduct: commuting costs personal expenses clothing personal meals or entertainment Side gigs offer a great way to boost your income—especially with rising costs—but taxes can catch you off guard if you're not prepared. Keep detailed records, understand what counts as income and save money for taxes. When in doubt, talk to a tax pro who knows side hustles; it can save you headaches (and even dollars). Stay organized, stay informed and keep your side hustle working for you, not the IRS. Was this article helpful?
Forbes
22-05-2025
- Business
- Forbes
20 Side Gigs That Rival Full-Time Wages, Earning Up To $4K Monthly
Experts are advising that side gigs are not a luxury anymore. American workers worry daily about losing their jobs as the economy tightens and technological advances cause massive layoffs. If you're a full-time employee, side gigs are becoming a necessity for extra income to make ends meet and as an insurance policy in case your job ends unexpectedly. The American workforce has learned they can call their own shots, have more flexibility and make more money working online with quick cash side gigs. Side gigs are becoming the new normal because workers are tired of the stress and uncertainty of their jobs. They're seeking the autonomy of being in charge of their own fate, instead of leaving that to corporate America that they can no longer trust to have their interests at heart. There are all types of side gigs that you can choose from. You can work from home online for some that do not require experience. Others take you into the community. Some are supplements for full-time workers, while other side gigs can be full-time pursuits that rival full-time wages like some of the ones listed below. Many gig jobs are those that AI can't handle like spotting bias, checking content or giving feedback. One platform behind this trend, Sapien, has 800,000 users across 100+ countries. They've completed over 75 million tasks for clients like Lenovo, Alibaba, MidJourney, and the UN. According to Rowan Stone, Sapien's CEO, 'If we can find a way to tap into that knowledge and reward people fairly for it, gig work won't just improve; it'll fundamentally change how we think about work, technology and value creation.' Stone explains that Sapiens is not your typical gig working platform. They do things differently; we use token-ized incentives and an on-chain reputation system to enure the highest possible data quality,' Stone explains. 'Contributors stake both tokens and reputation as collateral against the quality of their work, which means everyone is incentive aligned to deliver great data. More rep = more responsibility, and importantly, higher income potential via both advanced tasks and peer-QC (users validating the work of other users). Ensuring everyone has real skin in the game has been the single biggest unlock for Sapien since we launched 1.5 years ago.' The researchers at Topture calculated the hourly rate and estimated monthly income of 22 of the most popular side gigs. They researched the typical lowest and highest hourly rates using publicly available sources such as job boards, freelancer platforms and market rate reports. These values were used to establish a realistic earning range for each job. They assumed a consistent workload of 20 hours per week to reflect part-time engagement alongside full-time employment. Using this rate and workload, they projected monthly income estimates by multiplying the average hourly rate by 20 hours per week and then by 4.33 (average weeks per month). Average hourly rate was calculated as the midpoint between the high and low estimates. They used Google Trends and Google Keyword Planner to analyze public interest in each side hustle. Each data point is divided by the total number of searches within the US to measure relative popularity. This ensures that more populous states don't automatically rank higher due to higher total search volume. The resulting values are then scaled from 0 to 100, based on the keyword's proportion to all searches in the US. Note: identical interest scores across states do not indicate equal search volume, but rather similar relative interest. They used this normalized state-level data to identify the top three states with the highest interest in each side hustle. The same approach was used to calculate the overall Side Hustle Popularity Ranking. Most of these gig jobs rival full-time incomes, bring in thousands of dollars monthly, require little to no formal education--just a practical skill and a few focused hours each week--and have the flexibility to be done remotely at home. Here are 20 of the most popular side hustles with average monthly/yearly salaries and brief job descriptions. 1. Voiceover work ($4,500/$54,000). A voiceover side hustler provides voice recordings for a variety of media. 2. Selling Digital Products ($3,100/$37,200). This side gig involves creating and selling items like templates or e-books online. 3. E-Commerce Seller ($2,050/$24,600). E-commerce side jobs include selling handmade or vintage items online through platforms like Etsy. 4. Handyman Services ($1,750/$21,000). This side gig allows you to perform minor repairs and maintenance tasks. 5. Photography ($1,400/$16,800). In this gig job, you're paid to capture images for events, portraits or commercial use. 6. Freelance Copyrighting ($1,270/$15,240). Copyright freelancers write marketing materials, articles or website content for customers on the side. 7. Graphic Design ($1,000/$12,000). In a graphic designer side hustle, you would create visual content for businesses like logos and marketing materials. 8. Lawn Care ($950/$11,400). Side hustles of this type would involve you mowing lawns and maintaining gardens. 9. Online Tutoring ($690/$8,280). Online tutors who side hustle help students with subjects like reading or math, some online and some face-to-face. 10. Social Media Management ($650/$7,800). In a social media manager side hustle, you would manage and grow social media presence for clients. Work ($650/$7,800). This gig job involves completing various tasks such as furniture assembly or moving help. 12. Proofreading ($610/$7,320). Proofreader side hustlers are in the business of reviewing and correcting written content for errors. 13. Car Sharing ($540/$6,480). As a gig job car sharer, you must have a valid driver's license which allows you to rent out your personal vehicle. 14. Bookkeeping ($460/$5,500). Bookkeeper side hustlers must have accounting knowledge to manage financial records usually for small businesses. 15. Virtual Assistant ($450/$5,400). Virtual assistant side hustlers provide administrative support remotely, which can include technological aid such as email management. 16. Rideshare Driver ($450/$5,400). Ridesharers have a side gig that uses their personal vehicles to provide transportation services to clients. 17. Delivery Driver ($400/$4,800). Delivery drivers have side gigs in which they make deliveries to customers such as restaurant food or groceries. 18. Notary Public ($400/$4,800). To side hustle as a notary public, you must have a state certification that allows you to witness and authenticate legal documents. 19. Pet Sitting/Dog Walking ($350/$4,200). This side hustle requires a love for animals and involves taking care of pets while the owners are away. 20. Online Surveys ($160/$1,920). As a side job responding to online surveys, you need no experience, just the willingness to participate in online market research surveys. 'Some of these side hustles can rival full-time wages," Benny Rehwald, founder of Topture, points out. 'Voiceover work or digital product sales can bring in thousands a month once the skills are in place. What stands out is how many of them require little to no formal education, just a practical skill and a few focused hours each week.' Rehwald says the fact that many can be done entirely from home makes them even more accessible, especially for people balancing full-time work, family or health. 'Income from side gigs has become more than just a backup plan,' he concludes. "For many, it's a key part of long-term financial strategy.
