Side hustles are increasingly operating as small businesses rather than casual income streams. Monzo’s Side Hustle Forecast 2026 finds that people earning income alongside full-time work now generate an average of £5,640 a year from side ventures, with many reinvesting earnings and adopting AI tools to support growth. With the right tools, 2026 can be the year that Brits turn their side hustle into their main gig.
However, the research highlights a gap in financial infrastructure, with most side hustlers still managing growing income through personal bank accounts. The research from Monzo of 2,000 UK adults who earn income alongside their full-time job found that people are starting side hustles for a mix of financial and professional reasons. Earning extra income is the main driver (39%), followed by paying down debt (18%), while others are using side hustles to turn a hobby or passion into income (24%) or gain independence (22%).
Younger workers are seeing the biggest returns. Those aged 25-34 earn the most from their side hustle, averaging £507.87 per month.
Monzo’s research also revealed:
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London is where side hustlers earn the most, averaging £511.34 per month.
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Only 16% currently use a dedicated business bank account; 33% rely on their primary personal account, while 21% use a separate personal account exclusively for their side hustle to manage growing income and expenses.
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Nearly a quarter (24%) reinvest the money straight back into their side hustle to help it grow.
Most popular side hustles
Side hustles now span a wide range of industries, with people monetising both digital capabilities and practical skills.
Online selling or reselling leads the way (28%), driven by platforms such as eBay, Etsy, Vinted and Depop, followed closely by freelance and professional services such as writing, design or consulting (23%). Others are earning through manual or trade work (16%) and content creation or digital media, including social media, blogging and podcasts (16%), reflecting the wide range of secondary income streams.
Positively adopting the use of AI
AI is becoming an increasingly common tool among side hustlers. While 21% say they have no intention of using it, the vast majority are either already using AI or plan to this year.
It’s most frequently used for creative inspiration (33%) and generating content (26%), as well as managing finances (26%) and automating admin tasks like invoicing (22%). In fact, 38% of side hustlers believe AI will have a positive impact on their business, showing that many see AI as a practical way to aid efficiency and growth.
Financial management challenges
Even with the boost of a second income, financial management remains a key challenge as side hustles scale.
Four in five (80%) report facing money-related challenges – most commonly irregular income or late payments (24%), struggling to save or set money aside (20%), or accidentally mixing personal and business finances (19%). Others have found themselves spending more than they earn (20%) or dealing with high platform fees (17%) and unexpected tax bills (17%).
Jordan Shwide, General Manager at Monzo Business, said: “Our 2026 forecast shows that side hustles are giving Brits a real financial boost alongside their full-time jobs. But with four in five side hustlers admitting they’ve faced financial challenges, it’s clear that managing a second income isn’t always straightforward. Getting organised early and using the right business banking tools can make managing a second income easier, build confidence, and even help turn a side hustle into a main gig.”
Monzo’s Top Tips for Managing a Side Hustle:1. Take advantage of business banking: A Monzo Business account offers real-time balances, easy invoicing, digital receipts, and Tax Pots – helping people save time and stay in control as their business grows. 2. Monitor time commitment: Keeping track of hours spent on the side hustle helps maintain work/life balance and ensures earnings reflect the effort involved. 3. Plan for irregular income: Setting aside a portion of each payment helps cover bills, taxes and reinvestment, especially when earnings fluctuate month to month. 4. Enjoy the benefits: Staying organised means side hustlers can enjoy the extra income, treat themselves, and watch the hard work pay off! |
To read Monzo’s full research and analysis in their ‘Side Hustle Forecast 2026’, please visit: https://monzo.com/blog/side-hustle-forecast-for-2026.
