Many individuals embrace side gigs out of choice, while others turn to them as a means of financial support as they search for more stable employment.

The gig economy is solidifying its presence: recent data indicates that the freelance workforce in America has expanded at a rate three times that of the overall job market since 2014. Freelancers are projected to become the majority in the U.S. workforce within the next decade. On-demand jobs with companies like Lyft and TaskRabbit are also rising, with workers dedicating an average of 11 hours weekly and generating a quarter of their income from these roles.

While numerous people choose to pursue side hustles voluntarily, others do so out of necessity to maintain financial stability while looking for a more secure job.

“Side gigs become essential when simply cutting costs isn’t enough to meet your financial needs or savings goals,” explains a finance expert. “In such situations, it’s crucial to boost your income, either by increasing your earnings in your main job or by taking on a side gig.”

Here are several reasons why freelance work or side hustles can be beneficial or even crucial for managing expenses and securing your financial future.

Unforeseen Expenses or Employment Gaps

For many, juggling a side job alongside a full-time position—or even multiple gigs in place of steady employment—is necessary to cover bills, settle debts, or address sudden expenses, according to a career advisor. If you encounter job loss, a medical crisis, or need urgent home repairs, freelance work can provide essential support, especially without an emergency fund.

Aspiring to Save or Invest

If you aim to purchase a home or vehicle, save for your children's education, or manage student loan repayments without expecting immediate salary increases, a side gig can help you reach those financial objectives.

“For instance, if your after-tax income is $30,000 a year, and your expenses total $20,000, you have $10,000 available for debt repayment and savings,” the expert clarifies. “An additional $5,000 per year from a side gig raises your total income by 17 percent, but boosts your savings and debt repayment capacity by 50 percent.”

Gaining Additional Skills

If your educational background and experience don’t provide a clear path into a lucrative career or a new field, a side hustle can help you acquire valuable skills, enhance your resume, and connect with professionals in your desired industry.

Life Stage Considerations

For new parents or students, the demands of daily life might clash with a traditional 9-to-5 job, making side hustles an ideal solution for earning income. Many freelance opportunities allow for flexible scheduling, enabling you to balance family responsibilities, classes, or travel.

Exploring Career Options

A side gig can serve as a way to test different industries, work environments, and personal interests, particularly if you’re just starting your career or uncertain about your future path. It’s a chance to explore your passions before making a long-term commitment.

Enjoying Additional Benefits

In certain regions and sectors, seasonal side gigs can be advantageous even for those content with their full-time jobs. For example, working part-time at a ski resort during the winter not only provides extra income but also a season pass. Seasonal retail positions during holidays can come with discounts on merchandise.

Experts agree on the relativity of needing a side hustle. While relying solely on freelance work may mean forgoing the benefits of a traditional job—like comprehensive health coverage—the flexibility of self-scheduling can significantly outweigh the negatives. The chance to pursue creative interests is another appealing aspect.

If you decide to take on extra work for additional income, choose something you find enjoyable, advises a personal finance professional with side gig experience. “Even if it’s just an extra 10 hours a week at a job you dislike, it can feel like a much heavier burden, leading to stress and dissatisfaction. Seek work that has low barriers to entry and aligns with your preferences.”