Why So Many Millennials Have a Side-Gig

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Millennials hustle hard. You may have heard that 4 million American currently have a side-gig. So what exactly is a side-gig? A smaller job that you do in addition to your main job to make a little extra cash.

Millennials are known for being the generation with side hustles. That’s because the people most likely to have side hustles are thos aged 18 to 26, and some of them are making upwards of $500 a month.

Right now, about half of all Millennials have a side-gig. So now that I’ve shown you the numbers, you know that side-gigs are a big deal for us. When I was in college I had a small internship as a side-gig where I’d run social media campaigns for local businesses. I also have friends who have side-gigs like dogsitting, housesitting, babysitting, and driving for Uber.

“I started driving for Uber when I heard from a friend that they made about $200 more during the week just driving after work... I only drive on weekends and holidays but it gives me that extra cash to save for a vacation at the end of summer..” - Jane, 28, Salt Lake City, Utah

That means a lot of people are using their free time to make more money. So, why have millennials latched on to this trend while baby boomers and Gen Xers continue to live on one paycheck?

We know how to use our phones to make money.

Smart phones have changed the game for working millennials. We have potential income at our fingertips, and can make money through a list of apps like Poshmark, TaskRabbit, Rover, Fiverr and iPoll.

Not only are the opportunities easily available, but they’re convenient. Translation: you don’t even have to leave your house! As long as you have a strong internet connection, and you’re always contactable, you can work from the couch or while lounging by the pool. Having a side-gig means having a flexible, convenient, easy way of bringing in more income for yourself.

Basically, you can use your phone to make up to $500 a month on the side. Not bad.

The top side-gigs for millennials are selling items online, clothing and accessories, cleaning, marketing, and cooking and baking. And what are we using our side-gigs for? Millennials are experience-seekers after all...oh, and living is getting more expensive!

In some cities, the cost of living has increased drastically in the last few years. On top of that, Millennials have been name the “wanderlust” generation because they love to travel so much. In order to afford all that travel, as well as pay upwards of $1,000 in rent in some major cities, it’s no wonder Millennials are taking up side-gigs. Millennials also love local products, and top-tier technology. These things don’t come cheap!

If you’re a millennial looking for extra cash, consider taking up a side-gig. Create a budget, pick a savings goal (a week in Hawaii, maybe?) and figure out what you’re passionate about. It’s time to turn that passion into a paycheck!

Do you have a side hustle? Tell us about it!

Millennials: The Coupon Clique

The holiday season is filled with spending, and millennials are rising up to be a little more ready than the rest of the population. A new point of validation to the theory that millennials are financially savvy and deeply conservative is a finding that they love coupons.

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Do coupons seem like an old-fashioned, antique way of shopping? Not anymore. Today’s young consumers, often accessorized by their enormous student debt and rent payments, have become some of the most coupon-savvy of our time. According to an infographic by Syracuse University’s online Master’s in Accounting program, 96 percent of millennials use coupons. This can be in the form of traditional clippings, online promotions, rebate programs, etc.

When you break down the most popular forms of savings, digital coupons and internet promotions win by an overwhelming amount. Couple that with the fact that millennials are dubbed the “digital generation,” and the notion that they’re winning at couponing fits right in. More than 60 percent of millennials admit to trading and hunting for deals via social media or online before committing to a purchase. This consumer group is constantly on the hunt for apps and websites, like Groupon or Ibotta, which provide the value they seek at the touch of a button.

MBA@SYRACUSE

MBA@SYRACUSE

What’s in it for the businesses? Coupons can be a cost-effective method for attracting new customers, encouraging them to increase first-time purchases. For many, a coupon might’ve made a purchasing moment for a new product much more comfortable. Unlike price reductions or clearances, the incentive of a coupon makes the consumer feel they are taking advantage of a limited deal versus grabbing something no one wanted. According to information from MBA@Syracuse, an online MBA program with a GMAT waiver, the rise in popularity for digital coupons also benefits the business as it eliminates costs to print and makes room for codes to become a valuable insight.

Coupons can make a dollar go further, and coupon-related discounts can add up to more than $3.5 billion in savings per year. The art of stretching the dollar is allowing millennials to make more guilt-free purchases while staying on a budget. So alas, some valuable notes we should be taking from this generation.

Millennials and Debt: How It Can Already Impact You Negatively

Millennials are some of the most technologically advanced, information-loaded generation of humans to date. With all this knowledge and access to it, it’s often easy for millennials to fall into the trap of misinformation. You’re told to take out the credit card; or you’re told not to. You’re told to take out that loan, you’ll pay it off easily later; or you’re told to take a second job and avoid a trip to the financial aid office.

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One thing millennials are notorious for struggling with is control of their debt. As much as we want to avoid it, today’s world revolves around money. But, more and more we’re finding that how much you have in the bank today isn’t as important as how clean your credit history looks. This can be the difference between affording your first home, saving on car payments, and avoiding hefty interest rates.

Disregarding your debt can come with long-term consequences you may not realize until you’re in too deep. An infographic by MBA@Syracuse, the university’s online MBA program, shows just how much bad credit can affect long-term purchases: an additional $4,975 on credit cards, $9.320 on car payments and a painful $30,057 on your first home. That’s not all, here are other sneaky ways debt can impact your life.

1. It can lead to emotional stress.

It’s easy to understand how the stress of debt and instability can lead to serious emotional stress, even depression. On top of that, some people try relieving feelings of depression by compulsive shopping – bringing your debt count even higher! A person may feel trapped, desperate and hopeless looking at their messy finances and it can be incredibly detrimental to their overall wellbeing.

2. You will not be able to afford buying a home.

As you battle through debt, you may be forced to live in an apartment to make smaller housing payments. In the meantime, that means you’re saving less to make the hefty down payment for your first home. Add in thousands of dollars in debt and your credit score may become the roadblock to getting an affordable rate for your humble abode.

3. You might be disqualified for a job.

Companies are frequently conducting background checks, which often times include a credit check. If your job requires that you handle money, deep debt can scare an employer away from hiring you. In another instance, some hiring teams will take bad credit as a sign of irresponsibility and look away from your application. According to Whitman’s online MBA program, 1 in 10 unemployed people are denied a job due to poor credit.

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4. A harder time during retirement.

This mistake, and one of the biggest, won’t be felt for another 40 to 50 years. Saving for retirement is nearly impossible to do when you’re making heavy payments to reduce debt. The average American is only saving about $25,000 for retirement, which is not nearly enough to sustain a comfortable lifestyle after leaving your job. For many, the reality becomes that you have to take a part-time job after retiring from your career.

The good news: New laws passed after the financial crisis of 2008 have made it more difficult for millennials to rack up credit cards without proof of income, which has kept many from spending what they can’t pay off. A few simple ways to get yourself out of debt include saving as much as you spend, paying any and all bills on time, negotiating a higher salary or starting to build credit with a small loan or credit card you can easily pay off.

With a little guidance and education, getting out of debt is achievable.