When the going gets tough, the tough get working and the SMH reveals that the sustained spike in the cost of living, driven by the extra push from 12 rate hikes in a year, has seen a surge in second jobs.

A few years ago, the Yanks, who are masters of catchy terms, tagged second jobs as a “side hustle” and I knew it was bound to be something the younger generations would’ve loved the sound of.

In March, CBS reported: “Nearly half of American workers today have a side hustle to earn extra cash, showing the toll inflation has taken on working people, according to a new report.”

In a research from LendingTree and PYMNTS, “one-third of respondents said they had a second job, while 1 in 6 said they got supplemental income in another way, including commissions, selling goods online or gambling profits. (cbsnews.com)

Why this big US trend?

That’s simple, and it’s the same reason that’s forcing Aussies into second jobs — inflation!

Here the ABS says 950,000 Aussies have a second job, which is an 89,000 increase in a year. Interestingly, interest rates have been rising for just over a year, so that near 10% increase in people in second jobs looks rates rise connected. But as the year progresses and the mortgage cliff kicks in, those wanting more work will climb considerably higher.

The SMH reports that ABS research shows: “Women are much more likely than men to have more than one job, as are teenagers and people in their early 20s. Those with multiple jobs are also likely to have a working week five hours longer than someone with a single employer.”

In the 1980s when I was a teacher and rates headed towards 17%, I taught, created a cleaning business that cleaned the white-collar factory in Rushcutters Bay that made the Fairlight Computer Instrument, and pulled beers at the Paddo RSL on Saturday night!

But you don’t just cope with the rising cost of living by getting an extra job. Over the years I’ve been asked how to get through periods of inflation and heartbreakingly high interest rates, and here’s what I’ve come up with:

1. Put your life on the lawn and see where you’re spending every dollar.
2. Try and cut your spending by 10% by buying less and by shopping smarter and even in less well-off suburbs, where prices are lower.
3. Do a garage sale or use eBay to sell ‘stuff’ sitting around collecting dust.
4. Take in a lodger, such as an overseas university student to help with the rising cost of living and interest rates.
5. Rent out your house and invade your parents.
6. Redecorate your garage and put it on Airbnb.
7. If you have an SMSF, you can lend 5% of your superannuation to yourself!
8. You can rock up to the bank of mum and dad.
9. You could encourage your kids to get a job to help out the family.
10. You could resolve to lose weight, stop drinking or smoking to find money that you already have but eventually goes to someone else!

Under normal circumstances, you wouldn’t entertain many of these innovations but as I said earlier, when the going gets tough, the tough get working and they start thinking outside the square.

The lessons from these high cost of living experiences can give you insights that will help you learn how to build wealth. A black cloud can have a silver lining, provided you’re prepared to be in the market to learn from others who know more than you.

The SMH story today says the NAB chief economist, Alan Oster thinks there’s one more rate rise ahead and then rates will be cut around August next year! Alan could be wrong — economists often are!

However, if he’s right, my 10 money-making or money-saving ideas and/or a second job should come in handy for the tough year ahead.