Half of Aussies seeking another source of income as cost-of-living bites

by Admin
October 14, 2024

A staggering half of all Australians will need to supplement or switch up their main income in the next few years to stay afloat, according to new research.

As the cost of living crisis bites, a new report has found 55 per cent of Australians are hoping to start a small business or a profitable side hustle within five years.

Small Business Loans Australia (SBLA) surveyed 1005 Australians to ask how their main income was faring against skyrocketing mortgage repayments or rent and pricey groceries.

More than half of Australians are hoping to find extra income through a side hustle or a small business. (Getty Images/iStockphoto)

In a breakdown of the figures, 38 per cent said they would start a side hustle and 17 per cent would start a small business for their sole income.

Overall, 68 per cent were found to be “motivated” to top up their income.

The respondents said they were more likely to start a new business or a side hustle against their main skewed younger, with 79 per cent aged under 25.

States and territories with people more likely to find an extra income stream were NSW and the ACT.

However, the motivation to start a small business as the main income was fairly even across Australia.

SBLA looked into why so many Australians wanted to run their own business and the main motivator was “better income”.

Other factors included pursuit of a work-life balance and to leave a “toxic work culture or boss”.

Small business owner — The survey found 17 per cent of Australians were hoping a small business would be their main income in the next five years. (Getty)

Alon Rajic, founder and managing director of SBLA, said the survey results were further proof the cost-of-living crisis was hurting Australians and dwindling their savings.

“Overwhelmingly, Australia’s high cost of living is driving the motivation behind a desire for an additional income. With financial pressures mounting and no sign of easing, people realise they need to find ways to meet their living expenses,” he said.

As Australia lags, wages in these countries are growing

“Small businesses enable them to earn more in the hours available around their main job.

“There is a certain amount of freedom and flexibility in small business, and that’s essential when you are starting something new and working around other employment.”

The cost of living crisis has pushed Aussies to look outside their regular income for extra cash. (Nine)

The survey results come as more and more Australians are forced to adjust their budget and lifestyle as inflation hurts hip pockets.

Recent research from Finder found Aussies are figuring out new ways to cut back, including picking up furniture on the side of the road or relying on free food or meal services.

Finder personal finance expert Sarah Megginson said three years into the cost of living crisis, Australians were finding it tougher than ever.

“Traditional cost-cutting measures are no longer enough, so many are turning to support programs or doing things they’d never normally do to scrape by,” she said.

“Budgets are tight and desperate times call for desperate measures.”