How many jobs do you have? If the answer is one then you might just be part of a dying breed.
25% of all UK adults currently have some sort of side project providing a secondary income, according to a recent study conducted by the University of Reading. And that number looks set to rise fast.
Researchers from the Uni’s Henley Business School found over half of these side hustles were set up within the past two years and predict that half the adult population will have a side project by 2030.
Freelance writing, design work, consulting and training all make up the most popular ways people are monetising their skills in their free time. Some use it as a way to test the waters before they commit to their business idea full-time, for others it’s a handy way to supplement their main income through their hobby.
And if you think this all seems eye-rollingly millennial, guess again. While it’s true that those aged 25 to 34 are more likely to have a side project, with 37% of the age group generating an income on the side, 20% of baby boomers run a secondary business too.
Two people who know all about using their hobbies to help pay the bills are Kris and Jeremy from our new Invest for Life series. Find out how supper clubs and an eye for garden design are helping them out below:
Do the hustle
Young people in particular face an uphill task in funding a lifestyle comparable to their parents. Housing is a big hurdle and with the average London home costing 13 times the average salary in 2018 (8.5 times in 2008) side businesses are one way young people are trying to make home ownership that bit more likely.
And it’s not just house prices putting a dent in our savings. The average cost of a UK wedding topped £27,000 in 2017, with parents no longer the sole financial contributors.
The misconception here is that this generation isn’t that concerned with long-term financial planning but, faced with challenges like these, we do need to be smarter about how we go about saving as well as generating income sources.
Stocks and shares ISAs are one way you can make your money work as hard as you do. Rather than simply stockpiling cash, investing lets you generate a snowball effect - letting dividends and interest compound over the years. Like Jeremy, this might help you pick and choose the jobs you do later in life, or pick up a new hobby to run with, in the knowledge that your savings are working for you in the background.
It looks like today’s young people are already thinking of their long-term financial wellness. More than ever we need to get the compounding started as soon as possible to give us a chance of funding the lifestyle we want down the line.
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The value of investments and the income from them can go down as well as up, so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. Tax treatment on ISAs depends on individual circumstances and all tax rules may change in the future. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser.
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