Side hustles help savers keep their finances on track
The cost-of-living crisis has forced many people to put their longer-term financial goals on hold – as increased pressure on day-to-day budgets means things like buying a house have been put on the back-burner.
But for some, it seems side hustles are helping them keep their dreams and goals alive.
New research for F&C Investment Trust found that nearly a quarter (24%) of people with side hustles are putting some, or all, of the extra cash into a “rainy-day” fund for emergencies, while 27% plan to put the money in savings to help with long-term goals.
Aaron Adeniran, 32, from London, has been using graphic design skills he developed at university to help him build a deposit for a house.
“In my day job I’m a business analyst, but I’ve taken on freelance graphic design and online services work as my side hustle.
“I like the benefits which come with the flexibility of taking on graphic design projects when and how I like,” Adeniran says.
Some of the survey respondents also plan to use the money towards funding a
Many are using property, while others hoped it will help them to retire earlier.
One in six (16%) are using extra earnings to pay off debts. The research also indicates side hustles are supporting savings goals across generations, including those looking to supplement their pension pot.
Gen-zs aged 18-23 were found to be reaping the biggest financial rewards from side hustles typically, earning £434 per month. Those aged 55-77 with a side hustle were found to be banking an extra £272 per month on average.
The research – which polled 1,500 people – found more than half (58%) started their venture to combat rising living costs.
Beatrice Hollond, chair of F&C Investment Trust says it is encouraging to see some people putting the money towards long-term goals, adding: “Not only will this keep some financial goals alive, like early retirement, but it may also help people reach their ambitions sooner than anticipated.”