By Tashi McQueen
AFRO Staff Writer
tmcqueen@afro.com
As rising costs and economic uncertainty strain household finances, more Americans are turning to side hustles for extra income and long-term financial security.
According to data from the U.S. Census Bureau, 491,941 people filed to form new businesses in March, a 6.86 percent increase from March 2025.
Sacha Walton, a business strategist and founder of SWI Management Group, says the side hustles most likely to build wealth are able to grow into growth-oriented businesses, create recurring income or generate long-term ownership opportunities.
“In today’s economy, side hustles are no longer just ‘extra income’ for many people, they’ve become a form of financial protection and income diversification during uncertain times,” said Walton. “Some generate temporary income, while others create pathways to long-term wealth, ownership and sustainability.”
Experts say not all side hustles are designed for lasting wealth.
“The side hustles with the strongest long-term potential are the ones that can eventually scale beyond simply trading time for money,” said Walton. “The key difference is whether the side hustle can evolve into a scalable business, an asset, or a system that continues generating income over time.”
Walton said lasting wealth often depends on building structure early rather than operating reactively.
“Many successful businesses today started as side hustles, but the people who build lasting wealth are usually the ones who approach them with strategy, systems, visibility and scalability from the beginning instead of operating in constant survival mode,” she said. “Most people aren’t lacking ambition or ideas, they’re lacking structure.”
She added that while jobs such as food delivery and rideshare driving can provide immediate financial relief, they are difficult to scale because income is tied directly to hours worked and ongoing expenses.
“They can create breathing room while someone develops a more scalable business model, builds additional skills or transitions into ownership opportunities,” said Walton.
Walton also pointed to growing use of artificial intelligence-powered platforms that allow users to launch apps, digital tools and online businesses with lower startup costs. She noted that this shift is especially important as economic changes and workforce reductions continue to affect Black communities disproportionately.
“According to recent workforce reports, hundreds of thousands of Black women have been affected by federal workforce changes and economic instability, highlighting the growing importance of entrepreneurship, ownership and multiple income streams,” said Walton.
Rahkim Sabree, a financial therapist and author of “Overcoming Financial Trauma,” said side hustles can also create financial strain when people lack business knowledge.
“Many times people conflate competence in their work with being a good business person,” said Sabree. “This can lead to financial distress because the learning curve for using a side hustle to improve one’s financial situation is often expensive.”
He said many entrepreneurs scale too quickly by investing in costly tools and services before establishing financial stability.
“Understanding what drives their desire to side hustle is critical,” said Sabree. “Are they seeking safety, freedom or something else? Auditing their values, beliefs and goals related to money allows them to move forward with intentionality rather than reactively.”
He also encouraged entrepreneurs to prioritize functionality over aesthetics in the early stages of building a business.
“Can they use the free version of Calendly and Google Meet, or do they need to pay for Zoom and other expensive appointment schedulers?” he asked. “Understanding their margin allows them to focus on functionality first and aesthetics later.”
As more Americans turn to side hustles, experts say those who treat them as expandable systems rather than quick fixes are more likely to build lasting financial stability.
