In recent years, the landscape of work has changed dramatically. With the rise of inflation, living costs, and the shifting nature of employment, many question whether having just one job is enough to achieve financial security.
Why does diversifying one’s sources of income become a necessity? One of the most pressing issues people face today is the escalating cost of living.
The rising cost of living
According to the U.S. Bureau of Labor Statistics, the inflation rate in 2023 peaked at 4.9% year-over-year, and prices on essentials like food, housing, and healthcare continue to rise.
In a recent analysis by online real estate platforms Zillow and StreetEasy published by CBS News, rents across the country increased by 30.4% between 2019 and 2023, while wages grew by 20.2% during the same period.
As per the report of Yahoo News Singapore, the average monthly rent today in Singapore for a one-bedroom apartment is $3,636, fueled by high demand and a shortage of affordable housing.
Similarly, cities such as Hong Kong, Switzerland, and the UAE have experienced significant increases in rental prices.
The cost surge, worsened by population growth and post-pandemic migration, makes it increasingly difficult for renters worldwide to secure affordable housing.
For many workers, these rising costs make it harder to maintain the same standard of living. A single salary often doesn’t stretch far enough to cover everyday expenses and save for the future.
As a result, many people are turning to additional side hustles, part-time work, or freelance opportunities just to stay afloat.
Is the gig economy the solution?
The gig economy, which includes freelance, contract, and part-time work, has become an increasingly important way for people to supplement their incomes.
A white paper produced by Jobs on Demand (JoD) published by the Singapore Business Review showed that an increasing number of workers in Singapore are opting for gig work to gain more flexibility and autonomy.
It also revealed that 20% of gig workers have multiple jobs, working an average of over 40 hours per week.
A recent study by Gensler showed that most (64%) of Singaporeans feel that living in their neighbourhood has become less affordable. Furthermore, 38% of Singapore residents report living paycheck to paycheck, marking a 3% increase from 2021.
Thus, many believe that building multiple sources of income—whether through investments, freelance work, or owning a business—can help safeguard against job loss, medical emergencies, or other financial shocks.
The changing nature of full-time employment
In addition to the financial pressures driving people to seek extra income, the nature of full-time employment has also shifted.
Job security, once a hallmark of traditional 9-to-5 roles, is now much less guaranteed. Layoffs, automation, and outsourcing have become common in many industries, leading workers to fear for their jobs.
According to a Channel News Asia commentary, the first two months of 2024 have been marked by a sobering wave of layoffs across multiple sectors.
Shortly after the new year, Lazada also made headlines for laying off approximately 100 employees right after they returned from the holiday break.
The move sparked swift backlash, with workers criticizing the lack of transparency, inadequate severance packages, and the perceived unfairness of non-compete clauses.
In addition to Lazada, Amazon has also announced layoffs at various locations this year, including within its live-streaming division, Twitch, in Singapore. Google has also affected its Singapore workforce in its latest round of cuts.
Beyond the tech industry, around 20% of the staff at local pub and eatery chain Stickies Bar were laid off.
Swedish home appliance manufacturer Electrolux shut down its regional office on Singapore’s Rochester Road, causing an estimated impact on 100 to 200 employees.
Official data shows that retrenchments more than doubled to 14,320, compared to just 6,440 the year before.
How much is enough? The bottom line
The answer to whether one job is enough varies based on individual circumstances, industry, and lifestyle.
For some, a single job may provide adequate financial stability, especially if they are in a high-paying profession or have a stable work environment.
However, for most people, especially those in lower-wage or unstable sectors, relying on one source of income is increasingly risky. Diversifying income sources protects against economic uncertainty and provides opportunities for wealth creation.
Thus, whether through a side hustle, investments, or entrepreneurial ventures, exploring multiple revenue streams is becoming the smart financial strategy in the modern economy.