Side Hustles Are Overrated (Do This Instead)

Side Hustles Are Overrated (0:00)

Brian: Here’s a hot take. Side hustles are overrated. Don’t get me wrong, they have their place. A side hustle can be a great way to increase your income so you have more to save and invest. But here’s what most personal finance experts leave out. For a lot of people, a side hustle is not the fastest or even most effective path to building real wealth. And chasing one could actually be slowing you down. Today, I want to make the case for a different approach to increasing your income, and I’ll show you why it can be more powerful than a side hustle. Money feels a little tight, but you’ve got some financial goals. Maybe you want to build up your emergency fund, pay off some debt, or finally start investing. You’re looking for ways to increase your income, and a side hustle seems like the obvious answer. After all, more money coming in means faster progress. Before you sign up to drive for a food delivery app on the weekend or start building a drop shipping store right there in the living room after you get the kids in bed, I want you to think honestly about whether a side hustle is actually the best use of your time and energy. Because for a lot of people, it isn’t.

3 Reasons Side Hustles Fall Short (1:06)

Brian: And here’s three big reasons why. The first reason is going to be obvious to some of you who have already tried a bunch of different side hustles. And that is the pay is often terrible. According to Bankrate, the median side hustle income is just $200 a month. And 28% of side hustlers are only making $1 to $50 per month on average with their side gig. And when you factor in the hours invested and the wear and tear on your personal vehicle to earn that money, the effective hourly rate is likely well below what you’re already making at your main job. I’m willing to bet you’ll be paid more per hour at your 9-to-5 than you will be for Door Dashing on a Friday night. The side hustle can feel like progress, but the math often doesn’t hold up.

Brian: The second reason side hustles are overrated: burnout. If you’re already working full-time, adding nights and weekends has a cost. There’s less sleep, less time with your family, less mental recovery, which can lead to lower performance at your main job, the one that’s actually paying your bills, providing your benefits, and even building your long-term career. In 2025, 66% of American employees said they were experiencing some form of burnout. Now, add a second job on top of that full-time schedule, and it’s a recipe for stress and exhaustion. If you’re not careful, a side hustle can derail your primary income, damage your health, and delay the very financial goals you are trying to accelerate.

Brian: Okay, reason number three is the big one, and it’s something most people never even consider: opportunity costs. What if you took all the time and energy you’d put into a side hustle and invested it into your primary career instead? Maybe it’s a professional certification that makes you more valuable or building a skill set that opens up a higher paying role. Maybe it’s putting in the extra effort to earn a leadership opportunity or networking with the right people in your industry. Or maybe it’s just as simple as having the energy and focus to do exceptional work that lands you a raise. The point is, your income is your single greatest wealth-building tool. And sometimes it makes sense to focus on growing the income you already have rather than adding a new, smaller source of income on top of it.

Alex vs. Jordan: Two Approaches to Earning More (3:27)

Brian: I’ll show you what I mean. Let’s say there are two people who want to increase their income. We’ll call them Alex and Jordan. Alex decides to start a side hustle. He puts in a few hours of effort every week and generates an extra $10,000 per year on top of his day job. So he’s got more margin and therefore more to invest. But Jordan takes a different approach. Instead of picking up a side hustle, she puts that same time and energy into her primary career, gets a certification, does some strategic networking, prepares carefully for a performance review, and lands a raise worth $15,000 more per year.

Brian: On paper, Jordan is already winning the income race. But here’s what makes it even more powerful. That raise doesn’t just affect this year. It becomes her new baseline. Future raises are calculated on top of it. Her 401(k) contributions go up and her employer match goes up as well. The effects of this pay bump extend across her entire career. Meanwhile, Alex has to go out and earn that $10,000 again and again every year that he is trading his spare time for money. Two very different outcomes for roughly the same amount of effort.

The Two-Step Path to Growing Your Primary Income (4:43)

Brian: There are times when it makes sense to start a side hustle, and we’ll get to that in a bit. But first, here’s the two-step path to take if you’re starting to think a side hustle might not be the move for you. Step number one: maximize your primary income. Start by asking yourself an honest question. Have you fully invested in your own marketability? It sounds cheesy, but sometimes the best investment you can make is in yourself. Skill development, continuing education, strategic networking, and learning how to advocate for your own compensation can yield returns that no side hustle can match.

Brian: Step number two: increase your savings rate. This one matters just as much as step one, but it’s where a lot of people drop the ball. A higher salary doesn’t build wealth by itself. We’ve seen plenty of high earners who are completely broke because of lifestyle creep. So when your raise comes, make sure you increase your savings rate. We recommend saving and investing 25% of your gross income. If you’re not there yet, every raise is an opportunity to close that gap. Even a modest income increase can give you enough to make a dramatic difference over a 20 or 30-year time horizon, but only if you don’t spend it first. So we tell folks to make your investing automatic. Set up automatic contributions so the money moves before you even have a chance to spend it on anything else.

When Side Hustles Actually Make Sense (6:05)

Brian: Now, I want to be clear because the title of this video is a little provocative and I don’t want to leave you with the wrong takeaway. Side hustles are not inherently bad. There are absolutely situations where they make a lot of sense. If your side hustle is a stepping stone toward owning your own business, that changes things entirely. Starting lean, testing a concept, and ramping up while you still have a primary income is smart entrepreneurship. And if your side hustle is consulting in your primary field, there’s a double benefit. You’re earning extra income, and you’re building skills, credibility, and a network that feeds directly back into your main career. That kind of side hustle is essentially an investment in yourself. And if you have a side hustle you really enjoy and it brings you real satisfaction, and it doesn’t come at the cost of your health or your primary career, then the math doesn’t have to be perfect. Life is more than a spreadsheet.

Brian: Now, here’s the truth. Successful side hustles are the exception, not the rule. Most people who start one don’t sustain it long enough for it to make a meaningful change to their finances. So before you commit to nights and weekends building a second income stream, take an honest look at your situation. How much is your time really worth? How much runway does your primary career still have? And how do you actually want to spend your time?

Brian: You might find the better path is right in front of you: focused, intentional work on growing your primary income and consistently investing the difference. Because here’s the thing, either path can help you earn more money. But it’s what you choose to do with that money that builds real wealth. And if you want to go deeper on exactly where to put your money once you have it, check out the Financial Order of Operations to walk you through the complete system. And as always, keep building towards your great big beautiful tomorrow.