For many of them, that auxiliary income is nearly essential.
According to the latest PYMNTS Intelligence Paycheck-to-Paycheck Report, “High-Income Consumers Lead Surprising New Data on Side Hustles,” 30% of consumers who now earn extra cash on the side said losing that additional income would have a very or extremely negative impact on their financial stability. That percentage rose to 53% for consumers who live paycheck to paycheck and find meeting their financial obligations challenging.
But it’s not just those struggling who are feeling a pinch right now. The report, which drew on insights from a survey of 4,203 consumers, determined that 26% of high-income earners (those making more than $100,000 each year) sought out extra income in recent months.
What may be surprising is that these high-income consumers are not coasting on investments — they are the group most likely to receive funds from active sources, such as reselling items, carrying out informal tasks or making artisan products. Twenty-two percent reported earning additional money through active means, while 20% said they earned additional money through passive income. That suggests they may be drawn to these easy-to-access (and perhaps even enjoyable) methods of making money.
For comparison, about 16% of those earning less than $50,000 earned supplemental money through active means, while 12% earned passive income.
Profits from investments are the top passive supplemental income source for high-income consumers. Fourteen percent of high-income consumers received investment earnings in recent months, while 3.4% of low-income consumers did the same.
The gap closes but is still present when considering active income sources. Although earning money by selling used items appealed to 11.4% of high-income earners, for example, 8.2% of those earning between $50,000 and $100,000 each year and 7.3% of low-income consumers did the same.
Turning to friends and family to help financially is another resource that consumers have in common regardless of income. While about 7% of high-income consumers had to seek out support from friends and relatives, 8.2% of everyone earning less than $100,000 annually did the same, suggesting that even though inflation may be decreasing, the need to occasionally lean on others for help may never go away.
