How British employees are making an additional £590 a month – is having a aspect hustle the way forward for work?

Three quarters of people think that running multiple side hustles alongside a full-time job will be the future of working life, a survey shows.

As many as one in five people said they already run more than one side business alongside a full-time job in order to make more money, according to research by Sage.

It claims that 45 per cent of people earn extra income from a side hustle, which they use to cover day-to-day expenses.

On average, those with side hustles earn an average of £590 per month in extra income, amounting to more than £7,080 per year, Sage said. This is on top of the £2,337 after tax earned by the average side-hustler each month from their day job. 

While some side hustles are fully fledged businesses that bring in considerable income for their owners, most people will be doing things like reselling unwanted items or filling out surveys for some extra cash.

According to separate data from the Post Office, one in five people say re-selling goods is their side hustle, making them up to £400 per month.

Reselling: The most popular side hustle is by far selling goods online

Younger generations make more on average from their side hustles, with those aged between 25 and 34 earning £823.53 from their side hustle each month, whereas those between 16 and 24 and between 35 and 44 both making just over £650 each month.

Those with side hustles between 25 and 34 had the highest take-home income at around £3,450.

In comparison, people over 55 with side hustles earn around £1,827 from their job, and also just £243.69 each month from their side hustle.

While many people (71 per cent) simply view their side hustle as a way to supplement their income and give themselves more freedom, some want to turn their side gig into a full-time business.

Unsurprisingly, these ambitions differ with age. As many as 66 per cent of 16 to 24-year-olds plan to take their business full-time, compared with just 23 per cent of over-55s.

Even so, almost two thirds of side hustlers say they would keep their day job even if they became successful in their business.

Grace Hardy says accounting tools can help budding entrepreneurs

‘Side hustle made launching my business less risky’ 

Entrepreneur Natalie Glaze founded her swimwear and jewellery businesses Stay Wild Swim and By Glaze as side hustles. 

She says: ‘Side hustles are the perfect way to dive into something you love without the risk of quitting your day job – and in today’s economy, they’ve become a crucial way to start a business with the safety net of a salary.’

‘I started both of my businesses as side hustles while working full-time, so I understand the hard work and passion that goes into balancing a main job with other ventures.

‘It’s exciting to see that so many people now see side hustles as the future of work, and I can’t wait to see what’s next for this generation of entrepreneurs.’ 

The main motivation for starting up a side hustle was as a way for owners to top up their savings pot, with 38 per cent using their side hustle for this purpose.

Some 30 per cent use the extra money to pay for holidays, while 29 per cent also reinvest their profits.

Grace Hardy, 22, launched her side hustle business Hardy Accounting after completing an apprenticeship. She offers accounting services to young entrepreneurs.

Her top tip is to use technology to simplify admin, leaving more time to grow the business. 

‘With so many of us wanting to turn our side hustles into something bigger, having tech that simplifies admin and taxes is crucial. I love showing my followers that managing your finances doesn’t have to be stressful,’ she says. 

Some 50 per cent of those with side hustles make use of accountants or accounting software in order to manager their money, according to Sage. 

Nikola McNicol-Kenney, vice president of small segment UKI at Sage, said: ‘If you’re just starting out, have a few side hustles, or a re a seasoned business owner, it’s worth investing in the right technology.

‘This includes accounting tools that take the stress out of keeping you compliant with the latest changes – such as the Government’s “Making Tax Digital” initiative. 

‘That way, you can make your side hustle pay and get on with the stuff you love.’