Yahoo Finance 6 Key Signs You Need a Side Gig Just To Catch Up
Side gigs provide a financial lifeline to tens of millions of Americans. While most people need a full-time job to pay the bills, side hustlers now make up more than half of the U.S. workforce.
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About two-thirds (66%) of Americans reported living paycheck to paycheck. So, it’s no surprise that side gigs have become the “new normal.” MarketWatch reported that 54% of Americans reported taking on side gigs in the last 12 months to supplement their primary source of income.
Side gigs can serve not only as an outlet to make extra income to catch up on your bills, stay out of debt, or build your savings — but can also be a way to tap into your personal and professional passions.
If you’re wondering whether you should join the side gig revolution, several key signs can indicate that you need a side gig to catch up.
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6 Obvious Signs You Need a Side Gig to Get Ahead
Here are six key signs you need a side gig just to catch up, according to GOBankingRates and Invoice Home:
You need (or want) extra income: If you’re looking for extra income other than the take-home pay from your 9-to-5 job, taking on a side gig is a smart idea. You can use the extra cash to catch up on necessary bills, stay out of debt, or simply allocate more funds toward saving and investing.
You have spare time on your hands: If you find yourself with too much spare time, or maybe you’re bored at your day job, picking up a side gig could help you tap into your creative side all while bringing in extra income at the same time.
You don’t have an emergency fund: Building and maintaining an emergency fund is crucial. As a rule of thumb, you should have 6 to 9 months’ worth of monthly expenses in cash saved in a high-yield savings account — more if you can. Starting a side gig to start or grow your emergency savings is important, especially if you don’t have enough take-home pay from your 9-to-5 job.
You’re struggling to pay your monthly bills: The cost of just about everything is higher these days. If you have trouble making ends meet and your take-home pay isn’t cutting it, looking for a side gig is probably the right move. If the extra income means avoiding late fees and delinquencies, be sure to get started as soon as you can.
You’re motivated to work hard: If you are a hard worker and you want to put that extra ambition toward a side gig, it’ll likely translate into reaching more personal and professional goals as well as extra money in your pocket.
You’re too dependent on credit cards: Using credit cards to pay for everything is easy. At the same time, it can also be financially dangerous if you’re not careful. Credit cards typically carry some of the highest interest rates, which can quickly bury you in debt if you’re not paying your full statement balance each month. If you find yourself maxing out your credit cards every month, this probably means that you don’t have enough cash in the bank to pay your expenses. This is probably the best scenario to take on one or more side gigs.
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This article originally appeared on GOBankingRates.com: 6 Key Signs You Need a Side Gig Just To Catch Up
