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Earning from more than one source is becoming more common. Research suggests that almost half of people in Britain now have an additional job “side-hustle” while search interest in terms such as “side-hustle” and “passive income” has also increased over time, according to Google Trends.
This shift is often described as “multi-stream income” or “income-stacking”, reflecting a move towards earning from multiple sources rather than relying on a single salary. For some, this is a way to increase earnings; for others, it offers greater flexibility or a stronger sense of financial security. In most cases, it does not mean replacing a primary income, but supplementing it, whether through freelance work, part-time roles, or selling goods and services.
The key difference lies in the structure: income may arrive at different times, in varying amounts, and from multiple sources, rather than following a predictable monthly pattern. This can, in turn, influence how people organise their finances and approach saving on a day-to-day basis.
Additional income streams can vary from month to month, with self-employment income often more volatile in nature. This can affect how people plan around cash flow and short-term commitments. As a result, some focus on building a financial buffer to manage fluctuations in income. It’s also worth considering any potential tax implications associated with additional income streams.
While an additional income stream can increase total earnings over time, how that income is used can shape longer-term outcomes. Where this creates surplus income, some people choose to set aside a portion into savings. Over time, money held in savings accounts or cash ISAs will earn interest, which can compound and contribute to incremental growth in balances, particularly where contributions are made consistently.
Multiple income streams can mean more moving parts. Rather than tracking a single salary, people may need to manage different payment dates and amounts, which can make it harder to maintain consistent habits without a clear structure.
For some, simple approaches – such as separating money into dedicated buckets or setting regular check-ins – can help maintain clarity.
As income becomes more varied, savings can support both short- and longer-term needs. For example, savings may be used to:
Different types of savings accounts may suit different needs, depending on factors such as access, time horizon and personal preference.
Multi-stream income reflects a broader shift in how people earn, often sitting alongside a primary job rather than replacing it.
For those earning from multiple sources, taking a more structured approach to managing income and setting aside savings can help bring greater consistency and control over time.
Ultimately, understanding how different income streams fit together, and how they can support both short- and longer-term goals, may help individuals make more informed decisions and build a more resilient financial position.
This article is for informational purposes only and is not a substitute for individualised professional advice. Articles on this website were commissioned and approved by Marcus by Goldman Sachs®, but may not reflect the institutional opinions of The Goldman Sachs Group, Inc., Goldman Sachs International Bank, Goldman Sachs & Co. LLC or any of their affiliates, subsidiaries or divisions. Information and opinions expressed in this article are as of the date of this material only and subject to change without notice. This article is not a product of Goldman Sachs Global Investment Research. The information contained in this article does not constitute a recommendation from any Goldman Sachs entity to the recipient, and Goldman Sachs is not providing any financial, economic, legal, investment, accounting, or tax advice through this article or to its recipient. Neither Goldman Sachs nor any of its affiliates makes any representation or warranty, express or implied, as to the accuracy or completeness of the statements or any information contained in this article and any liability therefore (including in respect of direct, indirect, or consequential loss or damage) is expressly disclaimed.
| Savings interest rate (AER)(1) |
Savings Balance Before Paying Tax | |
| Basic rate taxpayer | Higher rate taxpayer |
|
|---|---|---|
| 1% | £100,000 | £50,000 |
| 2% | £50,000 | £25,000 |
| 3% | £33,333 | £16,667 |
| 4% | £25,000 | £12,500 |
| 5% | £20,000 | £10,000 |
The content in this article is for information only and is not advice. All content in this article was accurate on the date of publication shown above.
The content in this article is for information only and is not advice. All content in this article was accurate on the date of publication shown above.
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