Vivian Tu Says This Is Gen Z’s Smartest Money Move
In an age where everything seems to be increasing in price, many Gen Zers may see only one way to manage costs: picking up a side hustle. It’s an understandable response to the financial dilemma, as side jobs provide another income stream to weather the headwinds. But, it's how Gen Z approaches side gigs that may be the generation's smartest money move yet: They are subscribing to the work smarter, not harder motto.
In a YouTube video, personal finance expert Vivian Tu challenged the idea that more work always means advancing your financial progress. Tu offered an alternative: drive more value in your main job so your money can work harder for you.
Keep Learning: I'm a Financial Expert: 4 Gen Z Money Habits That Help Build Lasting Wealth
Take Action: 11 Unusual Ways To Make Extra Money (That Actually Work)
Here's why Tu believes Gen Z's approach is the smartest money move.
Working More Doesn’t Always Result in More Wealth
Side gigs have exploded in popularity and almost out of necessity in recent years. Gen Z, in particular, embraces the second job idea. Over half (57%) of Gen Z side hustle, according to The Harris Poll.
It’s easy to confuse the idea that working more always means more wealth. In fact, Tu explained that working less might be the answer. Tu argued that assuming more work is better can backfire, in part because it leads to exhaustion. “You also might be trading long-term wealth for short-term cash without realizing it,” Tu explained.
Her thinking is simple, that working more through additional side hustles sacrifices something. “When every spare moment goes towards earning more money, you’re not investing time in skill development, networking or strategic career moves that could pay off bigger later,” Tu added.
Determine What Your Side Hustle Is Costing You
Running the numbers is typically helpful with personal finances. The same is true when analyzing the cost of a side gig. If working an extra side hustle is costing you more money than you’re earning from it, it’s time to determine if it’s worth the effort.
Tu explained that this situation results from a burnout tax. “The reality is that when you’re constantly grinding, you’re often spending more on convenience,” Tu said. She gave takeout and rideshares as examples of such convenience spending.
This isn’t to say that Tu is against side hustles, because she said they’re needed in some cases. However, doing the math to determine the opportunity cost is worthwhile. “When you look at the bigger financial picture, it’s not always worth it, especially now that things are getting even more expensive,” Tu added.
Squeeze More Out of Your Day Job
Working multiple side hustles on top of your main job can provide relief, but it’s often not sustainable. Tu argued for a different approach by looking for opportunities to grow in your career.
“While you’re doing three different side gigs, you might miss out on advancing in your main career or developing expertise that could command a higher wage,” Tu explained. In short, Tu argued that working smarter generally puts you further ahead than working harder because it affords you more opportunity in your career.
Don’t stop there, either. Tu implored viewers to look at their day job to earn more. “The easiest way to make more money is at your current job. You should always, always, always, be asking for more money. If you don’t ask, you’ll never receive,” Tu said.
This idea gels with current research showing that Gen Z generally wants gradual career growth, not quick promotions. Only 25% of Gen Z favor a fast-promotion approach in their careers, according to Deloitte. By being purposeful in your main job, you may be able to earn more in the long run, which in turn can drive wealth-creation opportunities.
Having a side hustle isn’t bad. You don’t necessarily need to work less; you just need to take a page out of Gen Z's book and be more strategic about where you put your effort. Extra income is nice, but when it comes at the expense of increased costs or making it challenging to advance in your career, the trade-off isn’t always worth it.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
More From MoneyLion: