Sometimes one is just not enough. That is the conclusion many people are drawing when it comes to their sources of income amid ever-increasing economic uncertainty. In a growing trend known as income stacking particularly popular among Gen Z, people are picking up multiple jobs to ensure they can continue to make ends meet and live comfortably.
What is income stacking?
It’s the practice of “taking on multiple jobs to build financial security” through a “side hustle or freelance work on top of a full-time job, or several part-time roles,” said CNBC. One 35-year-old, for example, is “working two jobs — as an usher at an event space, and a receptionist at the student center — while finishing her computer engineering studies at the University of the District of Columbia,” said CNBC.
Why is it becoming more popular?
This practice is not necessarily new, especially for younger people just starting out in their careers. But it is becoming more common, partially due to the rising costs of living. It is also happening because “Gen Z isn’t buying into what they see as a broken social contract, where a linear path up the career ladder is the most reliable route to success and financial stability,” said Fast Company.
Social media is additionally contributing. For the younger generations, “freelance employment has been modeled in the form of influencers, content creators and podcasters online,” said Fast Company.
What are the benefits?
The most obvious benefit is the extra money it provides. This can give savers some wiggle room in their budget to cover basic living costs or fund extras. It can also provide a safety net in the event of job loss, with an alternative income source to fall back on.
Used strategically, extra income can help with building wealth. “Extra income could go toward a brokerage account, retirement savings or paying off the student loans that have been dragging you down financially,” said NerdWallet.
As an added bonus, juggling multiple jobs can offer up a shortcut to building skills and job experience, which can translate into further opportunities down the road. For example, “thrift store arbitrage is a lesson in customer communication, pricing strategy, logistics, cash-flow management and marketing — talents any savvy business would appreciate in a workforce,” said Utah Business.
How can you decide if the practice is right for you?
The biggest consideration is whether you realistically have the time and energy. You might first “consider taking steps like having a career conversation with your boss or maximizing the money you put into a health savings account,” said Vered Frank, a CFP in New York City, to NerdWallet. The former option could allow you to eventually earn more without putting in more hours, while the latter would let you make better use of the funds you are already bringing in.
If you do pursue income stacking, make sure you understand what your added job will entail and why you want to take it on. “It’s easier to make income stacking work when you have a clear goal and timeframe in mind,” said Samantha Mockford, a CFP with San Francisco-based firm Citrine Capital, to NerdWallet. “You may hate sacrificing sleep when you drive rideshare in the evenings, but it may be tolerable if it means being debt-free before the year ends.”
In an attempt to earn financial security amid a volatile economy, more people are working multiple jobs
