Goodbye 9-to-5? Why Gen Z Prefers Making Bank Online

Natalie Fischer, who posts personal finance content online as @investwithnat, launched her side hustle in 2022 with the goal of eventually working for herself. Juggling four digital revenue streams, she netted about $107,000 in 2023.  

Fischer eventually decided to quit her corporate job in data analytics to become a full-time digital creator. Her side hustles generated almost the same income as her 9-to-5, but she only had to invest half the time. 

Gen Z is tapping into a hot financial resource that other generations didn't have: the vast digital world. More young folks like Fischer are sustaining themselves by earning cash through social media and online channels. 

"We grew up seeing countless ways to earn money online through content creation, affiliate marketing, ghostwriting, social media management and more," Fischer said.

In her posts, Fischer reveals how she makes money from platforms like TikTok and Instagram, via commissions from affiliate programs, sponsorships and user-generated content partnerships.

A survey from Credit Karma earlier this year found that 45% of zoomers consider themselves digital side hustlers. Nearly half of Gen Zers making money on social media earn more through content creation than they do working a traditional job, and 13% earn six figures. 

As a personal finance writer, I was curious to explore how peers of my generation are breaking from conventional employment to become digital entrepreneurs. Younger generations are finding greater autonomy and financial stability through their enterprising use of technology. Could this new crop of online earners reshape how we view and approach work in the future?   

Read more: I Made Thousands Last Year From a Side Hustle I Didn't Mean to Start

Why Gen Zers are done with traditional work

I asked Fischer if she had any regrets about leaving her corporate job to pursue work online. She doesn't. She now has the flexibility and freedom to build her brand, which makes it worth it. 

The classic career path isn't the safe bet it used to be. After watching their parents accumulate debt and lose their jobs during economic downturns, younger generations are distancing themselves from the idea that full-time employment guarantees long-term stability.

"Gen Z is increasingly recognizing that the traditional nine-to-five no longer offers the security it once promised," Fischer said. 

Gen Z makes the lowest salaries in the country compared with other generations. More than one-third of Gen Zers turn to social media to earn income because they're struggling to find a corporate job. Moreover, Gen Zers who have full-time traditional employment are more likely to report that their income doesn't give them a good quality of life. 

The corporate ladder is no longer the gold standard for success, according to brand strategy expert Ana Calin. 

Calin quit her corporate job after 15 years to pursue a portfolio career juggling more than one side hustle. Though she's a Gen Xer, she thinks zoomers are on the path to transforming the workplace. 

"Gen Z is at the helm of this change, not because it's trendy, but because they've seen what happens when you put all your eggs in one basket," Calin said. 

Digital side hustles aren't just a trend 

Universal disillusionment with traditional corporate structures isn't the only reason digital side hustles are becoming more commonplace. Starting a business has also never been easier, according to Barrett Pearce, director of the LaunchPad, a resource hub that helps students explore entrepreneurship at the University of Texas at Austin. 

Pearce said Gen Z has more access to different types of entrepreneurship, whereas previous generations had more barriers. "It used to be a lot more expensive and time-consuming to start a side hustle, so this generation's tech savviness is inherent knowledge they're using to their advantage," Pearce said.  

Pearce works with many students who plan to pursue corporate jobs after graduation. At the same time, programs like the LaunchPad stress the importance of reducing risk through diversification, such as tapping into various financial opportunities and not depending on a single source of income. 

Students aren't closing the door on traditional jobs, but through LaunchPad, they're able to see the value of building multiple income streams. Pearce says this is a smart move because it could be the future of work.

Read more: A TikTok Ban Could Crust Content Creators' Financial Dreams

Online entrepreneurs face challenges too 

The ability to monetize hobbies or create personal brands online is appealing to Gen Z, especially since nearly 70% live paycheck to paycheck. Plus, Gen Zers are natives of the internet and have a distinct advantage in digital economies. But given how quickly digital landscapes change, how sustainable is this? 

"It's quite a sustainable trend, but with nuances," said Eric Croak, a certified financial planner and president of Croak Capital.

But becoming a content creator demands flexibility, whether that involves expanding to different audiences or being willing to switch platforms, especially given threats of a TikTok ban. Because trends and algorithms change every day, there's no single playbook guaranteeing success, so you have to be willing to learn and grow. 

Earning money on social media also requires patience and a keen business sensibility. Fischer, for example, spent years building a brand online before she felt comfortable walking away from her salaried job.

Staying consistent can help you build brand recognition, increase audience engagement and foster relationships with your followers, which Pearce says is essential to making digital entrepreneurship sustainable.