Side hustles pay more than ever — but fewer Americans are taking them on

Americans are earning more than ever from side hustles, but fewer are taking them on — a shift that underscores growing financial strain and a rising preference for steady income, according to a new LendingTree survey.

The survey of nearly 2,050 U.S. consumers found today’s side hustlers are earning a record $1,242 a month and often depend on that income to keep up with rising costs, though most say they’d still prefer the stability of a single, reliable paycheck.

Methodology:

LendingTree commissioned QuestionPro to conduct an online survey of 2,049 U.S. consumers ages 18 to 80 from March 3-6, 2026. The survey used a nonprobability-based sample with quotas to reflect the broader population, and responses were reviewed for quality control.

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Generations were defined by age in 2026 as follows:

• Generation Z: 18 to 29
• Millennials: 30 to 45
• Generation X: 46 to 61
• Baby boomers: 62 to 80

Fewer Americans have a side hustle

By the numbers:

Side hustling is becoming less common. In 2026, 33% of Americans report having a side hustle, down from 38% last year and 44% in 2022.

The decline is especially pronounced among younger generations. Among millennials ages 30 to 45, 45% say they have a side hustle, compared with 50% in 2025 and 55% in 2022. Gen Zers ages 18 to 29 saw an even steeper drop, with participation falling to 43% in 2026 from 57% last year and 62% in 2022.

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Gig and on-demand work remains the most common type of side hustle (29%). Here’s the full breakdown, based on examples provided by respondents:

• Gig economy and on-demand work such as food or grocery delivery, ride sharing, babysitting and pet sitting (29%)
• Freelance and professional services such as online freelancing, consulting, tutoring or teaching, and fitness instructing (26%)
• Creative, content and media activities such as e-commerce resale, direct sales and multilevel marketing (23%)
• Home improvement and skilled trades such as painting and moving services (21%)
• Home and property services such as house cleaning and landscaping (17%)
• Investing and financial activities such as day trading and rental property management (16%)
• Event-based work like DJing, photography and event planning (12%)
• Adult content such as OnlyFans (9%)
• Illicit activities such as substance sales (8%)

Even as participation declines, earnings are rising. Side hustlers report making an average of $1,242 a month, up slightly from $1,215 last year and far above $473 in 2022.

For many Americans, side hustles require a moderate time commitment. About 32% of side hustlers spend five to 10 hours per week on their extra work, while 24% devote 11 to 15 hours. More than a third (37%) have kept their side hustle going for one to two years. Looking ahead, 32% say they expect to always have a side hustle, while 25% — including 35% of Gen Z — plan to stick with it until their primary job pays more.

Despite the decline in participation, interest remains high. More than half of Americans (55%) say they’re likely to start a side hustle within the next year.

What they're saying:

Matt Schulz, LendingTree’s chief consumer finance analyst and author of "Ask Questions, Save Money, Make More: How to Take Control of Your Financial Life," said the decline in participation despite rising incomes may seem surprising but is understandable.

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"Yes, it has never been easier or cheaper to start a side hustle, but it still typically costs money to start one," he said. "Inflation has squeezed budgets, leaving people with less income to devote to starting that small business. High interest rates and tight lending standards have perhaps caused people to think twice about borrowing to fund a business. Also, in this K-shaped economy, while many Americans are struggling and desperately need as much income as they can find, many others are thriving and have less need to have that extra income on the side."

Side hustles cover cost-of-living increases

Dig deeper:

As the cost of living rises, many Americans are turning to side hustles to boost their income. Among those with a side hustle, 32% say they do it to keep up with everyday expenses, while another 32% use the money for discretionary spending or to save. About 25% rely on the extra income to help cover essential bills.

Economic pressures are a driving force. Among side hustlers, 36% cite the current economic environment as a key reason for starting one, while 31% point to inflation. Another 26% say rising housing costs pushed them to seek additional income. Other reasons include:

• Job insecurity or layoffs (20%)
• Rising interest rates (16%)
• Medical debt (15%)
• The COVID-19 pandemic (13%)
• Marriage (12%)
• Birth of a child (10%)
• Stock market dips (9%)
• Divorce (6%)

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Top expert tips

What you can do:

Side hustles can boost income, but how that money is managed matters. Experts recommend using earnings strategically to reduce debt, build credit and grow savings:

• Tackle high-interest debt. "Money that goes toward paying off credit cards and other types of debt is money that can’t go toward building your small business, growing your savings or working toward other financial goals," Schulz said. "A 0% balance transfer credit card can dramatically reduce the interest you pay on a balance, as well as the payoff time. A low-interest personal loan can, too. You can even call your card issuer and ask it to lower the rate. It works way more often than you realize."
• Improve your credit. "Few things in life are more expensive than crummy credit," he said. "It can have a massive effect on your personal finances, and it also matters when you’re trying to start a business or a side hustle. Protect your credit by reviewing your credit reports from the three major credit bureaus at least yearly to ensure there are no inaccuracies. Automate as many payments as possible to make sure you’re never late. Always try to pay more than the minimum so you’re never in danger of maxing out a card."
• Keep saving. "Think you have enough savings? I’ve got news for you. You almost certainly don’t," Schulz said. "Stashing even just a few dollars away every few weeks in a high-yield savings account can help you widen your financial margin of error, providing peace of mind during those lean months when that side hustle income dips a bit."

Personal Finance