South Africans turn to side hustles as salaries lag behind

WITH South African salaries slowly falling behind the rising cost of living, side hustles are becoming a practical and increasingly popular way for enterprising people to make up the shortfall.

- GAVYN LETLEY

Over the past five years, nominal take-home pay rose by 22.8%, but cumulatively inflation has increased by 26,6%, effectively reducing salary earners’ spending power by nearly 4%.

Add to this other pressures, such as rising electricity and other service costs, tax bracket creep, and finding a way to top up the monthly pay cheque becomes increasingly necessary. Side hustles gained traction during the COVID-19 lockdowns, as people stuck at home had the time to explore new ways to supplement their income.

Research indicates that now between 14% and 16% of middle-income households earn additional income from one or more side hustles. Starting a side hustle might seem increasingly appealing to cash-strapped consumers, but doing it successfully requires some thought and planning.

Some considerations include the following: