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Insight of the Day: 25% of High-Income Consumers Work Side Hustles

Key Insights:

  • High-Income Side Hustlers: 26% of Americans earning over $100,000 annually have side hustles.

  • Paycheck-to-Paycheck Participation: 23% of those struggling to pay bills also have side gigs.

  • Motivation for Side Hustles: High-income earners use side hustles for extra financial cushion, while lower-income earners need it to meet basic needs.

  • Passive Income: 20% of high-income earners also have passive income sources, primarily from investments.

  • Selling Used Goods: The most popular side hustle is selling used goods, with Gen Z being the most active participants.

Key Takeaway:

Side hustles are not exclusive to those struggling financially; a significant portion of high-income earners also participate for various reasons, including extra financial security and supplemental income.

Trend:

The gig economy continues to grow, with people from all income brackets turning to side hustles for financial gain. The popularity of reselling used goods is a notable trend, especially among younger generations.

Consumers Addressed:

The report addresses a broad range of consumers, including those living paycheck to paycheck, those with comfortable incomes, and different age groups, highlighting the diverse motivations and demographics involved in side hustles.

Conclusions:

  • Side hustles are becoming increasingly common across all income levels.

  • Financial security is a primary motivator for high-income earners to pursue side gigs.

  • Younger generations are more active in the reselling market, using it as a way to earn extra income.

Implications for Brands:

  • Brands should recognize the diverse motivations behind side hustles and tailor their marketing and products accordingly.

  • Offering platforms or services that facilitate side hustles (e.g., online marketplaces, gig economy tools) could be lucrative.

  • Targeting younger generations with products and services related to reselling or the gig economy could be a successful strategy.

Implications for Society:

  • The rise of side hustles reflects a changing economic landscape where multiple income streams are becoming more common.

  • It highlights the need for financial education and resources to help people navigate the gig economy and achieve financial goals.

  • The popularity of reselling could contribute to a more sustainable and circular economy.

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