💰Monetizing your side hustle

Today we're diving into some fascinating topics that are shaping our financial landscape. First up, side hustles: whether you're freelancing, gig-working, or turning a hobby into a career, more Americans than ever are finding creative ways to boost their income but are you really maximizing your money?

Next, we'll explore the FTC’s latest investigation into how companies use AI to set prices based on customer data—it's a look into the future of pricing and consumer protection. Finally, we'll discuss new research that challenges old beliefs about money and happiness. Let's get started!

- Milan

IN THE KNOW

 Monetizing Your Side Hustle 

If you found yourself taking on gig jobs, freelancing, working weekends, or turning your hobby into a full-time gig last year, you’re in good company. A significant number of Americans are hustling on the side, with a recent survey from Bankrate revealing that over one-third (36%) of U.S. adults are supplementing their main income with extra cash from side jobs.

For many, side hustles are more than just passion projects or new business ventures—they’re essential for covering everyday expenses. In fact, more than one-third of side hustlers use this additional income for basics like rent and groceries, and 32% expect to always need this extra work to make ends meet. Even with inflation easing up, the increasing need for side gigs highlights that many people don’t feel they can maintain their lifestyle on a single income. On average, side hustlers bring in an extra $891 per month, providing a crucial financial cushion.

The only way to maximize your side hustle earnings is by finding your niche and branching out within it. This will help you focus your efforts on one area, gain expertise, and monetize it without a hitch. For more tips on finding and fine tuning your side hustle, take our quiz and get your very own customized money plan.

Stealing Your Personal Data For Inflated Pricing 

The Federal Trade Commission (FTC) is diving into the world of "surveillance pricing," scrutinizing how artificial intelligence is used to adjust prices based on customer data and behavior. This practice enables companies to charge different prices to different customers. To get a clearer picture, the FTC is demanding information from eight major companies known for using AI and customer data to tailor pricing. These companies include Mastercard, JPMorgan Chase, Accenture, and McKinsey, as well as software firms like Task and Revionics, which work with big names like McDonald's, Starbucks, and Home Depot.

FTC Chair Lina Khan highlighted concerns that companies harvesting personal data could exploit it to inflate prices for certain consumers. Dubbed a “shadowy ecosystem of pricing middlemen,” the FTC's investigation will focus on how these companies collect and use consumer data, the nature of their products and services, and the impact on consumer pricing. Companies like Mastercard and Bloomreach have expressed their willingness to cooperate, emphasizing their commitment to fair competition and consumer protection. Meanwhile, Revionics clarified that it does not engage in targeted pricing or consumer surveillance. Regardless, be sure to protect your data and monitor your expenses so you can easily detect any fluctuations in pricing. Do this easily with our favorite money planner here.

Money Does Buy Happiness? 

According to new research from the Wharton School, it seems that more money really does buy more happiness, even at the top end of the income spectrum. The study found that millionaires and billionaires are significantly happier than those earning over $500,000 a year, debunking the old idea that happiness plateaus once you reach a certain income level.

The latest findings show that people with net worths in the millions or billions report life satisfaction ratings between 5.5 and 6 out of 7. In contrast, those earning around $100,000 report about 4.6, while those earning between $15,000 to $30,000 rate just above 4. Essentially, the happiness gap between the super-rich and middle-income earners is nearly three times larger than between middle- and low-income earners. This study, which combines data from earlier research and surveys of wealthy individuals, highlights that a significant portion of happiness differences happens above the median income.

However, it’s important to remember that no matter how much you make, you’re still going to be broke if you don’t manage it well. So be sure to save, invest, and continue learning about money management to make the most of your finances. You can get started here.

MONEY MYTH OF THE DAY

“You'll Start Saving When You Make More Money”

Many people believe that they’ll start saving once they make more money, but that’s a common misconception. The truth is, if you don’t cultivate good saving habits now, a higher income won't magically solve your saving issues. Lifestyle inflation—the tendency to spend more as you earn more—can eat up those extra earnings quickly, leaving you in the same financial situation, just with bigger expenses.

To start saving better, begin by setting a realistic budget and sticking to it. Automate your savings by setting up a direct deposit into a savings account every payday, even if it's a small amount. Track your spending to identify and cut unnecessary expenses. By making these small adjustments now, you’ll build a solid foundation that will help you save more effectively, regardless of your income level.

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