A GROWING number of Americans are finding a way to escape living from paycheck to paycheck. They work side hustles on which they say they spend less time and earn more money than if they were working a single salaried job. Many are starting their own small businesses.

This surprising finding emerges in a poll of 1,000 people who have additional income on the side. The poll was conducted by personal finance company Quicken. The survey defines side hustles as any extra income someone earns on the side of their main source of income, such as their primary job or other source of income.

"This new data highlights a group of Americans who are turning to contract work and side hustles to creatively supplement their income,” says Eric Dunn, CEO of Quicken.  “This is allowing them to address other elements of their financial situation, including paying down debts, saving for major purchases, and more."

With a weak jobs report indicating a slowing U.S. economy and six in every 10 Americans currently living paycheck to paycheck more and more people are considering taking on a side hustle to prepare for the road ahead.

Eight in 10 say that having multiple sources of income has helped prevent them from living paycheck to paycheck each month, with more than half (57%) having enough savings to live on for more than four months in an emergency.

Small business owners

One-fifth of this group report being business owners (such as selling products online, catering businesses, and photography).

Within the group of respondents that report working fewer hours and making more money, the most popular side hustles include:

• Personal assistance (20%)

• Cooking and baking (16%), and

• Caregiving (16%).

How they are using the money

Americans are using their additional income to:

• Pay down existing debts, including student loans.
• Save for vacations (41%)
• Buy cars (35%)
• Save for retirement (33%)
• Buy homes (29%).

Two thirds of these multi-job Americans say that having a side hustle also has helped them become more aware of their own finances and how to track them.

Across all respondents with more than one source of income, 72% say they feel more financially secure thanks to their side hustle. Additionally, two-thirds (67%) feel less stressed financially.

In addition to bolstering their current financial picture, many are looking ahead, with 25% of this group building skills they hope to apply to their future career, and 24% continuing to invest in their secondary income source with the goal of eventually working for themselves.

Younger more likely to be involved

Younger generations are even more likely to report this surprising result, with half of Gen Z and almost half of millennial respondents saying they work side hustles for fewer hours while making more money, compared with a third of Gen X and boomers.

With more than one in three Americans now earning money through side hustles, this new data sheds light on how these additional income streams may be changing the way America works, especially for younger generations.