Let’s face it: The single-job mindset is not paying the bills for most people. The evidence is everywhere. Credit cards are maxed out — sometimes just to keep the lights on. Emergency savings are low, if they exist at all. Many Americans would need to get an emergency loan to cover an unexpected expense.

Enter the new action hero: the side hustler. The side hustler beats through income challenges like a nunchaku expert in a room full of black belts. Just as Bruce Lee changed the face of martial arts action movies, side hustles are transforming the American workforce.

When we teach our children and students about budgeting and general financial wellness, we should also begin a conversation about income diversification. Sure, going to college and stepping into a career is great, but it’s not the right path for everyone, and it may not always be sufficient to make ends meet, let alone pay down debt or get ahead.

Let’s say you did the thing that our society expects: You went to college, got a degree and are working in your field. You’re paying down your student debt, albeit not as quickly as you’d hope. But then an economic downturn hits, and you’re laid off. In a tough job market, how will you make ends meet?

If you’d been building a side hustle mentality since college (or better yet, high school), you might have more savings to fall back on and a secondary income stream to keep you afloat while you hunt for a new job. With a little income diversification, you’re more prepared to weather life’s storms.

More than 1 in 3 workers (34 percent) are living paycheck to paycheck, according to Bankrate’s 2024 Living Paycheck to Paycheck Survey. If you get paid on a biweekly schedule, things may get a bit tight before each payday. Rather than relying on credit cards to solve your cash flow problems, a side hustle can give you the income boost you need to avoid new debt. 

Many side hustles are paid daily. With Uber, Instacart or DoorDash, for instance, you have the option to cash out when you end your side hustle shift (though this option may incur a small fee). I’ve met

Uber drivers in Nashville who earn between $300 and $400 on an average weekend night, braving the Broadway downtown craziness. If you have an unexpected expense, you can go out in the morning and come home in the afternoon with cash in hand to cover the cost. This way, you can eliminate the credit intermediary and avoid spreading the cost of that emergency over several months.

Like mortgage interest, your income is typically paid in arrears. You work for two weeks, and your employer catches up with you by giving you a paycheck. With a daily-pay side hustle, you can access your income as you earn it, smoothing over many cash flow bumps.

I’m a number-crunching guy. Seeing the numbers in black and white can make it easier to determine next steps or choose between two options. During my mortgage days, I created detailed breakdowns for my clients, outlining break-even points after refinancing and providing overviews of the amount of money they’d save.

Let’s say you’re fresh out of college, working your first real job in corporate America, making $50,000 annually. You’re able to save $200 a month after covering expenses and making your student loan payment, but you aren’t saving for retirement or making meaningful strides on your student debt.

Now, imagine that you get a part-time job with the sole purpose of growing your savings. By working eight-hour shifts on each weekend day, you earn an additional $1,200 per month, after taxes. If you put the side hustle income directly into savings, here’s a look at how your money could grow over time:

After one year of working a second job, you’ll have socked away nearly $17,000. That money could be used to build an emergency fund, pay down your student loan debt early or start saving for a house. Imagine how much you could save if you maintained this schedule for a few years!

You’ll encounter naysayers and experience self-doubt when you venture out into the side-hustle world. The Industrial Revolution hardwired the one-job, one-career mentality in the workforce, and despite a few hundred years of progress, that mindset has become deeply ingrained in most people’s minds. 

If you want to start a business or pick up a side hustle, consider the following:

After college, I taught elementary school for six years. To supplement my paltry income, I began offering freelance editing services on the side. Over the next few years, I established a reputation and a reliable client base, and eventually, I transitioned into the editorial world full-time. I built a small business that did more than pay the bills — it became a passion. It took persistence, long hours and tenacity, but turning my side hustle into a full-fledged business (and new career) was the best thing I’ve done for myself!

— Katie Lowery Bankrate loans editor

One argument against the multi-income mindset is that you’ll burn both ends of the candle. And to a certain degree, you are trading time for money. But if you don’t have the money to invest in real estate or fund a startup business, a side hustle can be a great stopgap.

Adopting a side-hustle attitude when you’re young could put you on the fast track to retirement savings and other financial goals. This is especially true since your expenses as a young ‘un are usually much cheaper than they can be later in life, when you have a house, cars, kids, dogs and a lot more financial responsibility. If you’re frugal with your side income, you could build a nest egg, make a down payment on a house or set yourself up to retire early.

After originating loans for 25 years, I can say this much with absolute confidence: Earning money improves your financial health than borrowing ever could.