Having a job doesn’t always mean you have enough money to meet your daily needs or savings goals.
A July survey of Americans conducted by Goldman Sachs Asset Management and behavioral economics firm Escalent found that more than 60% of respondents worked outside of their primary responsibilities, primarily because they needed to. Twenty-seven percent of respondents said their jobs cover their expenses, but success is difficult.
“Employment remains critical to retirement security, but for many Americans, it is no longer enough,” said a retirement report from Goldman Sachs Asset Management.
Gen Z is the most likely to say they make or have made money outside of their main job; Millennials are not far behind. That’s despite the majority of Gen Z and Millennial employees saying their jobs provide financial stability, the report said.
“Young workers may feel secure in their main job while still feeling the need to do additional work,” the report states.
Throughout the ages, most people have said they work gigs or side hustles out of necessity or for financial security.
“Traditional full-time employment may no longer provide full financial security,” the report said. “For many, supplemental income appears to have become part of the baseline.”
Some Americans are living paycheck to paycheck or adjusting their budgets to account for rising gas prices and other daily expenses. when Wage growth has been below inflation, making it difficult to find a new job to make more money.
A lack of financial security can lead to delayed savings goals. 83% of Gen Z and 78% of Millennials say they have put major financial goals on hold. 41% of Millennials have put off emergency savings despite being employed, and 30% say they have put off their housing or home-buying goals. The proportions of Generation Z are 35% and 34% respectively.
While some people may work a part-time side job, others are “overemployed” and work multiple full-time jobs. One Millennial worked five full-time remote IT jobs and earned more than $700,000 annually. As Business Insider’s Jacob Zinkula reports, overemployed people use their extra income for different reasons, such as retiring early or paying off debt.
Having multiple streams of income can also be considered a “portfolio career,” where people piece together different types of jobs, such as writing a newsletter, working a side hustle, and holding a desk job. For example, if you were laid off and lost your source of income, this might be a way to try a “stability overlay” that would make you feel more secure about your career.
“When you diversify your 9-to-5 job and build a portfolio career, you can protect yourself from the emotional and financial hit if the demands of your 9-to-5 business change,” career coach Janel Abrahami said in a TikTok video.
Sometimes, a part-time job can become a complete career pivot. In his 20s, Harlan Rappaport turned his email marketing side business into a full-time career after working as an investment analyst at a financial institution.
“I used to get really excited about the numbers, but over the past few years I’ve realized it’s more about the freedom I’ve had as a freelancer over the past few years,” Rappaport said in a reported article. “I don’t miss family events, can travel whenever I want, and can work from anywhere in the world.”