The traditional ‘nine-to-five’ is no longer a destination but an anchor that stabilizes larger, ambitious financial goals. But when the weekend hits, he swaps his keyboard for a soundboard.
“I work in IT as my primary focus, but as a side hustle, I work as a sound engineer for a band,” Stephen explained. What started as a college passion project has evolved into a powerhouse of financial stability. “Initially, it was never about the money. But as my skill grew, I began making a significant income, sometimes even rivaling my full-time job.”
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Stephen isn’t alone. According to the Deloitte Global 2025 Gen Z and Millennial Survey, financial concerns are the primary engine driving these generations toward secondary employment. While the “passion project” narrative remains, the data suggests a grittier reality that young professionals are chasing the paycheck to outrun inflation and anxiety.
The survey reveals that 48% of Gen Z and 45% of millennials cite their financial future as their top stressor. According to figures from Grip Invest, 43% of Gen Z actively prefer a side hustle for extra income and financial security.
Beyond the paycheck: Why hustle
The motivation behind the hustle is a mix of both fear and ambition. While the extra cash is vital for surviving expensive hubs like Mumbai, the “side gig” provides something a corporate cubicle often can’t: mental satisfaction and a hedge against obsolescence. In an era of rapid AI integration, many see side hustles as a way to stay relevant, diversify their skill sets, and gain a sense of agency over an uncertain future.
For Mikhail Pinto, a 25-year-old copywriting lead, his side hustle as a professional bass guitarist was actually supposed to be his ‘life hustle.’
“Lockdown happened, and I couldn’t pursue being a full-time musician,” Pinto said. He pivoted to copywriting, a skill he enjoyed back in college, but he never let go of the stage. Today, his music income is nearly as much as his salary.
“Since I live the DINK (double income no kids) life, I try to run the house on our salary income, and everything above from gigs is used for life and enjoyment. We run the house, make investments, and take care of expenses on our main income, and the rest we use for leisure, so it’s comfortable,” he added.
The income from side hustles in some industries is not as irregular as one might think. Especially for Pinto, who said that his band closes shows months in advance and even had shows booked for 2027 in 2025 itself.
The side hustle is also the ultimate upskilling machine. Stephen uses his secondary income to fund sound engineering software and courses, to keep himself at the cutting edge of his craft.
The modern side hustle is about more than just money, it’s about passion, financial security and more. “The side hustle also helps me enjoy what I do in my everyday job as well. Both of them together help me step closer to financial freedom,” added Pinto.
Navigating the grey area
This ‘double life’ creates a significant grey area in the workplace. Ankur Agrawal, founder of The LHR Group, a hiring firm, noted that the nature of side hustles has shifted. “It’s no longer just ‘moonlighting’ in the shadows. Gen Z is very upfront about it,” he said.
From selling handicrafts on Instagram to prompt engineering and AI content development, the options have exploded. But transparency is key. Agrawal warns that conflicts arise when people don’t disclose substantial side ventures.
“As long as the second job is not competing with your organization and you aren’t using company resources or time, no one can stop you. But the volume of income is a guiding principle for disclosure.”
To hustle without worry, professionals, according to Agrawal, should check the contract as many companies are moving away from blanket “no-employment” bans to more nuanced policies. The side gig shouldn’t draw from the same client pool as your employer. If your performance at your primary job slips, the side hustle becomes a liability.
The tax man and the financial safety net
The Income Tax Department doesn’t care if you have one source of income or four; they care about compliance, according to experts.
Santosh Joseph, founder of Germinate Investment Services, points out that all side income adds to your total taxable bracket. “There are creative ways to be tax-efficient, but you must be compliant,” he noted.
When a salaried individual earns additional business or professional income by applying their skills, talent and specialised knowledge that may be unrelated to the skills required at employment, the person has two options. “One is to consider such income at the time of filing his own income tax return, and pay advance tax as necessary. The second option is to declare such income to the employer in the prescribed form,” explained Janhavi Pandit, a CA based in Mumbai.
If they opt for the second, the details of such income pertaining to the same financial year should be submitted in Form 12BAA. “Once the salaried person submits this form, the employer is duty-bound to take this additional business or professional income into account for the purposes of calculation of TDS on salary,” she added.
In Form 12BAA, the individual can then fill in the details of the amount of income received or credited, and the tax deducted at source, on such business or professional income. If there is no TDS on the additional income, one can communicate the income details in writing to the employer, Janhavi advised.
Pankaj Mathpal, managing director of Optima Money Managers, also suggests that once taxes are accounted for, the focus must shift to stability. “People with irregular side incomes need to build a larger safety net, ideally 6 to 12 months of living expenses and liabilities,” he said.
Trap of lifestyle creep
The danger of a side hustle is the illusion of infinite wealth. When extra money flows in, it’s easy to justify a more expensive lifestyle. Financial planners advise a “safety first” approach.
Stephen Fernandes follows a disciplined 70-80% rule. “My side hustle really helps majorly because living in Mumbai is very hard. I’m able to actually put 70-80% of it into savings. I’ve set goals, and I work with a financial adviser… I think it helps massively towards achieving my financial goals.”
Planners suggest a “fortress” strategy for side hustlers. Liquid funds for immediate access and then graduating into arbitrage or balanced advantage funds.
Only once a safety net is built, should you venture into volatile equities, typically keeping large-cap exposure under 20%.
As Joseph of Germinate Investment points out, the key to making this sustainable lies in discipline, treating the extra income as an opportunity to build a lasting financial fortress. In an economy that demands ‘diversification to survive,’ the best investment you can make might just be the one you do on a Saturday afternoon.
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