Amid persistent economic pressures, the financial landscape for many U.S. consumers is becoming more precarious. Data from April 2025 reveals a new peak in the share of the population living paycheck to paycheck, prompting a widespread reliance on side hustles, not merely for extra cash but as a necessity to cover essential expenses or build a safety net. This shift towards a multi-income lifestyle, driven by economic conditions, highlights the urgent need for financial services providers to understand and cater to the evolving needs of a growing segment of the market.
What follows are seven key findings drawn from the report.
Paycheck-to-paycheck living reaches a new high.
The share of consumers living paycheck to paycheck has reached its highest point yet, with a significant portion struggling to pay bills. Nearly 7 in 10, or 68%, of consumers see their money go out the door as soon as it comes in. Nearly one-quarter (24%) struggled to pay bills in April 2025, up 19% from two years ago.
The rise in the number of people surviving on monthly paychecks is driven by specific demographics.
The recent jump in consumers living paycheck to paycheck disproportionately impacts certain groups, notably Generation X and those with higher incomes.
Between March and April 2025, there was a 14% spike in the share of higher-income consumers (those earning more than $50,000) living paycheck to paycheck. Between January and April 2025, the share of Gen X consumers living paycheck to paycheck rose by 12%. Since the beginning of the year, 11% more consumers earning between $50,000 and $100,000, and 12% of those earning more than $100,000 are living paycheck to paycheck.1
Side hustles are a mainstream financial strategy.
A significant portion of U.S. consumers now earn additional income on the side, making supplemental work a common practice. But side hustles aren’t just jobs, like a restaurant shift or driving for Uber. PYMNTS Intelligence also includes other supplemental income situations, including selling retail goods on platforms like eBay, renting out property and aggressively leveraging cash-back apps and credit card rewards programs, among other income-earning opportunities.
Four in 10 U.S. consumers now earn additional income through side jobs. Half of paycheck-to-paycheck consumers have at least one income-earning opportunity on the side, compared to one-third of those not living paycheck to paycheck. Also, 67% of consumers with a side job are also working part-time or full-time for someone else.
Side income is primarily used for core financial goals.
Most consumers with side jobs pursue this extra income for specific financial objectives. These include covering everyday expenses, boosting savings or paying down debt.
More than 8 in 10 (82%) consumers with a side job seek this income for a specific financial goal. For 34% of consumers with a side job who live paycheck to paycheck with issues paying bills, the extra income is primarily used to cover basic living expenses. Fifty-four percent of the total sample cited covering basic living expenses or paying down debt. Another 57% cited building savings or funding a specific purchase. Consumers who live paycheck to paycheck with issues paying bills also use side job income to pay down debt (19% cited this as the top use of income from side jobs).
Economic conditions drive side hustle adoption/expansion.
Current general economic conditions have caused a substantial number of consumers to start or increase their participation in side work.
Nearly 1 in 4 (24%) U.S. consumers have started or increased their side jobs in response to current economic conditions. For struggling paycheck-to-paycheck consumers, 74% began taking on side jobs or increased their frequency due to general economic conditions.
Side hustles constitute a substantial portion of income.
For consumers engaging in side hustles, the income earned from these activities constitutes a significant portion of their total monthly income.
Among consumers who have at least one side hustle, this extra work makes up a 43% share of monthly income. The share of income from side work is similar across financial lifestyles (43% for consumers not living paycheck to paycheck versus 47% for those living paycheck to paycheck and struggling to pay bills). However, the dollar amount here differs significantly, with those who are not living paycheck to paycheck earning $2,328 per month from side jobs compared to $1,576 for those living paycheck to paycheck and struggling.
Side hustle effort expected to continue or increase.
Most consumers who work a side job plan to maintain or increase the amount of time they spend on these jobs in the near future, indicating the continued importance of this income stream.
Fewer than 15% of consumers plan to slow down or stop their side hustles in the near future. On the other hand, 45% plan to ramp up their activity. Lastly, 85% of consumers earning income on the side plan to spend the same amount of time or more doing so in the next six months. For paycheck-to-paycheck consumers who are struggling, 61% plan to spend more time on their side hustles, compared to just 33% of those not living paycheck to paycheck.
1. PYMNTS Intelligence uses the following birth dates and approximate age ranges in 2025 for generational cohorts: baby boomers: born in 1964 or earlier and now age 61 or older; Generation X: born between 1965 and 1980 and now age 45–60; millennials: born between 1981 and 1996 and now age 28–44; bridge millennials: born between 1978 and 1988 and now age 37–47; zillennials: born between 1991 and 1999 and now age 25–34; and Generation Z: born in 1997 or later and now age 28 or younger.↩
