Side hustles are helping people keep their financial dreams alive – here’s how

From clearing debts to getting on the property ladder, can side gigs be beneficial?

Side hustles are helping some people to keep their dreams and goals alive in the cost-of-living crunch, new research indicates (Alamy/PA)

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 or paying off debts 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 a savings account 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.

He explains: “In my day job I’m a business analyst, but for over nine years I’ve taken on freelance graphic design and online services work as my side hustle.”

“While I love using the graphic design skills I developed at university, I don’t think I’d ever turn my side hustle into a full-time job. I like the benefits which come with the flexibility of taking on graphic design projects when and how I like,” Adeniran adds.

Some of the survey respondents also plan to use the money towards funding a property, while others are hoping it will help them to retire earlier.

I don't think I’d ever turn my side hustle into a full-time job. I like the benefits which come with the flexibility...

Aaron Adeniran, 32, London

The research indicates that people in midlife, aged 41-57, are particularly likely to be hoping a side hustle will help them retire sooner.

One in six (16%) meanwhile are using side hustle earnings to pay off debts.

Many people with a side project say it is helping them with their everyday living costs too, with 39% using some or all of the additional earnings to help pay their regular bills. Nearly a third (32%) use the extra income to fund non-essential goals, such as a holiday.

The research also indicates that side hustles are supporting savings goals across generations, right through to those who are using the extra money to supplement their pension.

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. A further one in four (25%) started their side hustle to be productive and make some extra money in their spare time.

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 home ownership or early retirement, but it may also help people reach their ambitions sooner than anticipated.”