7 Best Ways To Invest Side Gig Money for Maximum Returns in 2025
Written by
Jordan Rosenfeld
Edited by
Molly Sullivan
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If you’re in the good position to have side gig money coming in, you may be wondering how you could do more than just earn and spend, but turn it into wealth in the coming year.
With some thoughtful strategy and the advice of a financial planner, one of these routes might allow your side income to go gangbusters.
Real Estate
One of the most reliable kinds of investments in general is real estate, according to Adam Hamilton, CEO of REI Hub. He framed such investments as things that fall under the categories of “necessities,” which tend to be the most economy-proof.
“Thus housing, for example, remains a necessity for people regardless of what’s going on. So, if you have side gig income, consider ways to utilize that to invest in real estate. Maybe you could convert a part of your home into an Airbnb. Maybe you could purchase an additional rental property. Maybe you could simply make some improvements to your rental property in order to increase its value.”
Real Estate Crowdfunding
If you can’t purchase, or don’t own, an actual home or property, real estate crowdfunding platforms allow you to invest smaller amounts in property ventures, according to Christopher Stroup, CFP and owner of Silicon Beach Financial.
“With low initial investments and potential for steady returns, this can be a good alternative to volatile stock markets in 2025.”
Fractional Real Estate
Yet another way to invest in real estate is through fractional real estate, according to Alex Blackwood, CEO and co-founder of Mogul Club, a method in which you don’t need to start with a lot of money to make your money work for you.
Fractional real estate investing, which you can do through apps, “gives investors the stability of a bond plus the potential upside of an equity. It is a hybrid form of investing that pays you dividends via rental income while increasing in value via appreciation,” he said.
High-Yield Savings Accounts (HYSA)
For a more conservative approach, parking side gig money in a high-yield savings account can provide a safe, low-risk return, Stroup suggested. This is most effective when interest rates are competitive, allowing your money to earn a steady yield while staying liquid.
“This makes it a good option for those seeking stability in 2025,” he said.
Diversify With ETFs and Index Funds
While the stock market may be volatile, putting a portion of side gig income into diversified exchange traded funds (ETFs) or index funds allows you to tap into a broad range of sectors, Stroup said.
“Focus on low-cost funds to maximize returns while mitigating individual stock risks,” Stroup said.
Peer-to-Peer Lending
If your side gig money is adding up to a significant chunk, consider looking into peer-to-peer lending platforms, which offer opportunities to lend money directly to individuals or small businesses in exchange for higher interest rates, Stroup said.
“This option can generate higher returns compared to traditional savings accounts, but be mindful of the risks involved in 2025’s economic climate.”
Roth IRA Contributions
Retirement accounts like a Roth IRA are always a great way to grow your money with tax benefits.
“Your money grows tax-free, and if you’re under the income limits, it’s a great way to make your side gig money work for you in the long term, especially with tax-free withdrawals in retirement,” Stroup explained.
Whatever route you take, consider investing over spending for significant growth.
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