You’ve earned it. Now the question is, what to do with it. Of course, you can let your side hustle income sit in your bank account. But that’s not your only option.

While FDIC-insured banks seem the safest during difficult economic times, there are multiple alternative ways to invest your extra income.

You can invest for growth that includes:

• High yield savings accounts,
• Stocks,
• Land,
• Luxury assets,
• Cryptocurrency, or
• Precious metals.

If you want to put your money to work for you, check out these 6 tips to invest your side hustle income.

1.    High-Yield Savings

Some people like to play it safe while boosting their side hustle income. If this sounds like your game plan, investing your money in a high-yield savings account might appeal to you.

Stashing cash isn’t the most secure way to keep your money. It won’t appreciate or pay any dividends. It also loses value over time due to inflation.E

Today, the FDIC insures up to “250,000 per depositor, per FDIC-insured bank, per ownership category.” To top off the benefits, this guarantee applies to the initial principal that you deposit along with any interest that you earn.

Places like Discover, Citi Bank, Synchrony, and Marcus by Goldman Sachs offer 50% APY with zero fees (terms and conditions may apply).

2.    Index Funds, ETFs, and Federal Bonds

One of the most popular ways to invest is in the stock market. You can buy stocks in everything from gold mines, robotics, healthcare, pharmaceuticals, real estate, and fintech.

The best way to invest in the stock market is to talk to a financial advisor about your options, educate yourself on companies and their stocks, and have a long-term growth mindset rather than a short-term gains mindset.

Another way to invest your income is to put it into federal bonds. Unfortunately, although federal bonds are a low-risk way to invest, the returns are also meager.

Savings bonds are debt securities that the government uses to help pay for federal borrowing needs. These securities are issued by the U. S. Department of the Treasury and receive full faith and credit backing from the U. S. government.

As a result, federal savings bonds are a high-security place to invest your money.

3.    Real Estate

The real estate business has its risks, but it also has its rewards. Risks can include negative cash flow, issues with tenants, high vacancies, or property damage.

At the same time, billionaire moguls like Warren Buffett and Bill Gates have demonstrated that investing in farmland can offer solid returns.

According to the USDA, there are 911 million acres of land in America. However, nearly half of the farmland in the U.S. is rented, and many farmers are willing to pay non-operator landlords for agricultural land use.

4.    Luxury Assets

Maybe you like the idea of a tangible asset that you can see and feel. Luxury assets can offer a way to get a tangible investment object from your side hustle gains.

Fine art, diamonds, precious jewelry, watches, and vintage and luxury cars are examples of tangible luxury assets.

There’s something about investments that can be seen and touched that makes this category appealing to many people.

Remember that since luxury assets are physical, they also won’t offer stock market returns. It’s also an illiquid asset. This means that it’s not easy to get fast cash since it could take some time to find a buyer.

At the same time, luxury assets such as jewels, collectibles, fine art, or vintage cars tend to hold their value or may appreciate in some cases, depending on demand.

5.    Precious Metals

Hard currency, particularly gold, is a safe bet for investing your side hustle funds.

There’s room to get creative with investing in this field since precious metals can range from gold coins to bullion or even gold, silver, or platinum jewelry.

Precious metals have intrinsic value. When stock prices fall, metal values typically don’t follow. Their value often increases. This means that they not only have no credit risk, but they also pose no inflation risk. Precious metals such as gold can’t be inflated because no one can print more of them.

It’s unlikely that our economy will return to a barter system with physical goods and coins, but it might be a good idea to keep a percentage of assets in gold as a doomsday buffer. In the improbable scenario that the financial markets fail, gold, silver, platinum, and copper will either hold their value or appreciate.

It’s a good idea to educate yourself on various base metals, know how to identify fake metals, understand valuation, and legitimate places to purchase before investing in any precious metals.

6.    Cryptocurrency

A final popular investment choice for your side hustle income lies in the field of cryptocurrency.

Multiple options exist, but Bitcoin tends to remain the most popular. “Cryptos” allow investors a chance to dive into an emerging technology area.

This can offer both high risk and high rewards. So, if you’re interested in investing in cryptocurrency, make sure not to invest any funds that you might need for your future. However, with emerging technology offering exciting opportunities and growth, experts agree that cryptocurrencies are here to stay.

Image by [Ariya J] via [Shutterstock.com]