One in 4 Gen Z has a facet hustle to spice up their earnings: Should they be investing the money?

More than a third of people are considering starting a ‘side hustle,’ data from Scottish Widows reveals, as younger people increasingly look to supplement their income from full time work.

Other figures, from Enterprise Nation’s Start-up Ambition report, indicate that as many as 56 per cent plan to launch one. 

Younger people are the group most likely to have a side hustle, with more than one in four Gen Z, 26 per cent, currently earning money outside of their main job, according to figures from Scottish Widows.

Side hustles are becoming increasingly popular as people look to make extra money when and where they can, without taking on an actual second job.

These boomed during the Covid pandemic as many found themselves with extra time on their hands.

As many as 25 per cent of Gen Z men and 24 per cent of Gen Z women now say they have side hustles, compared to 16 per cent of millennial men. Just 15 per cent of millennial women have side hustles.

Extra cash: Sydney McGauran, a 30-year-old Junior Production Manager from London, sells crochet bags as a side hustle

Women, however, earn an average of £162 from their side hustle each month, compared with just £114 for men.

Some 16 per cent of women bring in between £100 and £300 per month through their side hustle.

However, as many as a third of side hustles bring in less than £100 per month, according to data from Remitly Business.

Despite earning much more from these, women are less likely to use savings products. Just 71 per cent of Gen Z women do so, compared with 81 per cent of Gen Z men.

My handmade bag business is my pocket money 

Outlet: McGauran says her side hustle gives her something productive to do rather than scrolling on her phone

Sydney McGauran, a 30-year-old junior production manager from London, says her side hustle is perfect for making a bit more money outside of work, but she doesn’t expect it to ever become her full-time job.

McGauran sells handmade bags and other products crocheted using yarn made from recycled t-shirts, and posts on Instagram as @essystitch. 

She says: ‘I don’t see it as something that could let me quit my job one day and do this full-time, so I’m not putting too much pressure on it.’

Only ten per cent of side hustle owners say they hope to eventually make it their full-time job.

McGauran adds: ‘I wanted to find an outlet to make the most of my time, and had seen crochet bags online and thought I would try it… it is a nice thing to do in the evening, rather than just scroll on my phone.

‘I treat it as a hobby and a way to just get a bit of extra money, but I don’t need to sell a certain amount to pay my bills.

A bag, she says, might take an hour to crochet, while a laptop case might take twice as long.

‘I see it as a steady thing, like pocket money. If it did suddenly blow up then great, but I can’t imagine crocheting eight hours a day.’

Although she uses social media to promote the products, and has sold to craft markets, she says most of her business comes from word of mouth.

 McGauran’s products are crocheted using using yarn made from recycled t-shirts

She said: ‘People reach out to me mostly… markets have been quite difficult because you have to pay for the pitch, it is quite hard to break even because lots of people just go to markets to browse.

‘I want to try to get better with posting online, but you have to be consistent with posting.

Still, even with expensive pitch costs, McGauran is able to sell enough of her products – bags, laptop cases and phone holders – to bring in some extra money each month.

Prices vary, but her largest and most expensive bags cost around £40, while children’s bags cost as little as £10.

‘I want to keep it steady,’ she said. ‘I can make over £100 per month and then a bit more in the busier months when I do markets at schools. I introduced personalising the bags and the school kids loved those.’

‘I don’t want to give it up, the bags are timeless, so I just want to keep doing it and see what else I can make.’

Should they invest the cash? 

Whether it comes from a side hustle, work bonus or inheritance, investing extra cash that comes your way can help build wealth for the long term. 

To benefit even more from the extra money they are earning, Scottish Widows says owners should consider investing their earnings. 

Currently, only one in ten side hustle owners say they are investing their income, however. 

Over the course of five years, Scottish Widows says a £50 monthly investment in a medium risk ready-made investment fund could be worth £3,348. After 10 years this could reach £8,210, and after 15 it could reach £15,641.

For a £100 monthly investment, five year growth could reach £6,905, while it could grow to £16,955 over ten years and £32,194 over 15 years.

Susan Hope, savings expert at Scottish Widows, said: ‘A side hustle can be a practical way to boost your income no matter what your situation is.

‘Investing the income from your side hustle is a smart way to make your money work harder for you and grow over the longer term, helping you achieve your long-term financial goals.

‘Thinking of investing as a side hustle could also help more people build up financial resilience to face into life’s unexpected costs. It’s about small amounts that add up over time.’