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.

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.

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.’