For Gen Z professionals, the motivation to hustle is driven by a mix of ambition and anxiety. While extra income is often essential to survive expensive
cities like Mumbai, side gigs offer something a traditional corporate role often doesn’t: creative satisfaction and a sense of control. In an age where AI is rapidly reshaping jobs, many young professionals see side hustles as insurance against obsolescence — a way to stay relevant, diversify skills, and maintain agency in an uncertain future. For 25-year-old copywriting lead Mikhail Pinto, his side hustle as a professional bass guitarist was meant to be his main calling, said a Mint report. “Lockdown happened, and I couldn’t pursue being a full-time musician,” Pinto said. He pivoted to copywriting — a skill he had enjoyed since college — but never abandoned music. Today, income from gigs nearly matches his corporate salary. Living a DINK (double income, no kids) lifestyle, Pinto and his partner rely on their salaries for household expenses, investments, and essentials. “Everything above that from gigs is used for life and enjoyment,” he said to Mint. “It gives us comfort and flexibility.” Contrary to popular belief, side income isn’t always erratic. Pinto’s band books shows months in advance — some as far ahead as 2027. The side hustle has also become a powerful upskilling engine. He reinvests part of his earnings into sound engineering software and professional courses to stay ahead of the curve. For him, the payoff isn’t just financial. “The side hustle helps me enjoy my everyday job more. Together, they bring me closer to financial freedom,” he added. Navigating the grey zone at work This dual professional life often exists in a grey area within organisations. Ankur Agrawal, founder of hiring firm The LHR Group, says the nature of side hustles has evolved. “It’s no longer moonlighting in the shadows. Gen Z is very upfront about it,” he said to Mint. From selling handicrafts on Instagram to prompt engineering and AI content creation, opportunities have exploded. However, transparency remains critical. Problems arise when employees fail to disclose substantial side ventures. “As long as the second job doesn’t compete with your organisation and you’re not using company time or resources, it’s generally acceptable,” Agrawal explained. “But the volume of income is often the trigger for disclosure.” Professionals are advised to check employment contracts carefully. Many firms are moving away from blanket bans toward nuanced policies. Performance at the primary job remains non-negotiable — once that slips, the side hustle becomes a liability. Taxes and building a financial safety net From the tax department’s perspective, multiple income streams are irrelevant — compliance is all that matters. “All side income adds to your total taxable income,” said Santosh Joseph, founder of Germinate Investment Services, according to a Mint report. “There are tax-efficient ways to manage it, but compliance is non-negotiable.” According to Mumbai-based chartered accountant Janhavi Pandit, salaried individuals earning professional or business income through side gigs have two options: declare the income independently while filing returns and pay advance tax if required, or disclose it to their employer. If opting for disclosure, details must be submitted via Form 12BAA, after which the employer must factor the additional income into TDS calculations. If no TDS is deducted on the side income, the individual can still communicate the details in writing to the employer. Once taxes are accounted for, financial planners stress the importance of stability. Pankaj Mathpal, managing director at Optima Money Managers, recommends a larger emergency buffer for those with irregular income. “Side hustlers should ideally build a safety net covering six to twelve months of expenses and liabilities,” he said. The trap of lifestyle creep The biggest risk of side income is the illusion of unlimited money. As earnings rise, so does the temptation to upgrade lifestyles. Financial planners advocate a “safety-first” mindset. Stephen Fernandes, another Gen Z professional, follows a disciplined approach. “Living in Mumbai is tough, but my side hustle allows me to save 70–80% of that income,” he said. Working with a financial adviser, he channels surplus earnings toward clearly defined goals. Experts suggest a “fortress strategy” for side hustlers — prioritising liquid funds for immediate needs, then gradually moving into arbitrage or balanced advantage funds. Exposure to volatile equities should come only after a solid safety net is built, typically limiting large-cap investments to under 20%. As Joseph points out, sustainability lies in discipline. Treating side income as a long-term opportunity rather than short-term indulgence can help build lasting financial security. In an economy where diversification is no longer optional but essential, the smartest investment Gen Z professionals may be making is not just in markets — but in what they choose to build after office hours.
