In recent surveys, it has been found that over 70% of households are looking for ways to make extra income. A second income is not always a luxury anymore - it is often a lifeline to make ends meet. Yet, not every opportunity is worth the cost of your time and money.
It used to be that success meant focusing on your full-time job, climbing the corporate ladder, and then retiring with a pension. For many, that is no longer the path to an enjoyable retirement. With costs soaring and wages not keeping up with inflation, people are finding that adding another income stream is essential.
Many refer to this extra work as a "side hustle." You know, you hustle hard, receive little in return, and can get "hustled" yourself by bad actors, empty promises, or outright scams.
The Gig Economy Can Cost You.
Jobs like rideshare driving or selling have become popular, and for some it can help pay the bills. I'm sure you have heard about national brands like Uber, Lyft and Etsy. But for most, these platforms have proven to not be viable options. When it comes to rideshare platforms, drivers must pay their own gas, car repairs, insurance, and platform fees. A recent MIT study found that after expenses, the median pretax profit for Uber and Lyft drivers range from $8.55 to $10.00 and hour, which is often below local minimum wage requirements. When you add in a minimum tax burden of at least 25% or more, you usually end up doing all of that work for next to nothing.
Sellers on Etsy face a similar challenge. There is the $0.20 listing fee, 6.5% transaction fee, payment processing fee of 3% plus $0.25 per order, shipping lables fee starting at $0.93 and the optional advertising fees of up to 12%. This means that the $20-per-hours side hustle can radpidly shrink to $6-$8, depending on your scale and pricing strategy.
But here is the biggest problem with practically all side hustles: You only earn while you are working. No rides? No income. No orders? No income. The minute you stop, the money stops also. Quickly, your side hustle can move from something enjoyable to a treadmill.
Many younger workers have realized this and are looking for income streams that fit their lifestyles, not just their bank accounts. In one survey, 67% of side hustlers reports burnout, with nearly 20% saying that their side job actually causes more stress than their primary job.
Millennials and Gen Z especially are seeking income sources that align with their values, protect their well-being and reduce stress instead of adding to it.
So What is a Better Kind of Backup Plan?
The last few years have demonstrated that extra income is greater than ever. Earning opportunities are under more serious scrutiny and more families are askingL Does this fit my life? Does it reflect my values? Can it offer steady income instead of something stressful? The answer is yes, but you have to look for a few things:
- Does it build over time? The best side work creates momentum - not just a onetime payout. Look for income that repeats, not just rewards you once.
- Does it work with your schedule? Flexibility should mean less stress, not more. Your side work should complement your life, not complete with it.
- Is it affordable to start - and sustainable to keep going? High startup and inventory risks are red flags. Options that require a substantial investment or going into debt are almost always a dead-end trap.
- Do you believe in what you are offering? Whether it is products or services - trust matters. When you believe in what you are offering, others will also.
- Probably the most important is whether you are helping others - not just yourself. The most rewarding opportunities improve someone else's life too. This is not just good business practices, it is a good life.
We are now living in a world where every dollar counts and the best supplemental income streams don't just help you get by - they help you move forward.
During the last fifteen years, Seagull Technologies has only found one viable option that has proven to be a long-term solution for helping people gain financial control their lives. And we are very proud to offer that solution to those tired of the treadmill.
All you have to do is ask.