Side Hustle Or Salary Bump? How Gen Z And Millennials Are Doubling Their Income In 2025

Forbes

4 hours ago

In 2025, Gen Z and millennials are approaching financial growth with bold new strategies. Faced with rising living costs, shifting job security, and a changing relationship with work, many young professionals aren't waiting around for promotions or cost-of-living adjustments. They're taking income into their own hands—either by asking for more at work or by building something outside of it.
While some are successfully negotiating raises, others are diving into freelance gigs or microbusinesses. So which strategy actually works better, and which one is right for you?
Let's look at the data behind each approach and what Gen Z and millennials should consider when deciding how to increase their income this year.
Gen Z is entering the workforce with less patience and more pragmatism. They want purpose, but they also want pay. Nearly two-thirds of 18–35-year-olds in the U.S. already have or plan to start a side hustle, driven by rising costs and gig flexibility, according to a recent Side Hustle Nation report compiling U.S. demographic data.
At the same time, younger workers are becoming more assertive about their worth in traditional employment. According to NASDAQ, 55% of Gen Z negotiated their starting salary – more than any other generation.
Whether through entrepreneurship or self-advocacy, the trend is clear. Young professionals are getting louder about money. 1. The salary negotiation route
Best for you if: You're established in your role, want to grow internally, and prefer a stable income stream.
Negotiating your salary may not be glamorous, but it's one of the most powerful tools you have to increase earnings, especially in roles where your value is proven.
According to a Pew Research summary, two-thirds of people who asked for a raise received a better offer. In fact, 38% were offered more than they requested.
MorningStar reports that Gen Z graduates are aiming for starting salaries between $75,000 and $100,000. Career advisors say negotiation is one of the only ways to bridge that gap early.
As Forbes contributor Benjamin Laker advises, aiming for a realistic target, like a 5–10% raise, is key to negotiation success, especially when aligning your request with business goals.
Pros of negotiation: Raises can compound over time, increasing long-term earnings
Builds confidence and self-advocacy skills
Strengthens your brand within the company
Challenges: May feel uncomfortable if you lack leverage or support
Requires preparation, research, and timing
Doesn't solve job dissatisfaction or stalled growth
If you're performing well and haven't had a compensation review recently, it may be time to start the conversation.
Whether it's a bold ask at work or a business built after hours, Gen Z is taking control of how they ... More earn. getty 2. The side hustle strategy
Best for you if: You want flexibility, creative freedom, or feel limited in your current role.
Side hustles have evolved beyond Etsy shops and rideshare gigs. Today, they include everything from digital consulting and online tutoring to resale businesses and niche content creation.
According to Scripps News, 26% of Gen Z already hold a side job. Over half expect to manage multiple income streams within the next five years.
The income can be significant. A LendingTree study found the average side hustle earns around $1,200 per month, although the median is closer to $400. More importantly, 61% of respondents said their side hustle income was essential to making ends meet.
Forbes recently highlighted how pairing gig roles like tutoring and content creation has helped some earn up to $5,000 per month, demonstrating what's possible when combining high-demand gigs.
Pros of side hustling: Offers creative control and financial autonomy
Builds marketable skills you can carry into other roles
Could grow into a full-time business
Challenges: Requires time and discipline outside your 9 to 5
Income can be inconsistent or delayed
Risk of burnout if poorly managed
If you're already spending evenings helping friends with social media or running an online store, you may be further along than you think. 3. Choosing what works for you
Instead of asking which strategy is better, consider which is more realistic and beneficial for your current situation.
Questions to reflect on: Do I have leverage at work or standout results I can use in a raise conversation?
Is my current role a long-term fit or a stepping stone?
Do I have available time, even in short blocks, to dedicate to a side project?
Am I more motivated by career progression or creative ownership?
Answering these questions can help point you toward a path that plays to your strengths and fits your lifestyle. 4. Can you do both?
In many cases, yes. But it takes strategy.
Some professionals negotiate for better pay at work while launching a consulting gig on the side. Others use their side hustle to fund certifications that increase their earning power at their day job. Done carefully, this hybrid approach can create more financial flexibility and professional momentum.
Just make sure to set boundaries. Time-box your side projects. Check for conflict-of-interest clauses. And be honest with yourself about what you can sustainably manage. Take control of your income story
In a job market shaped by automation and changing values, Gen Z and millennials are no longer relying on annual reviews or climbing one rigid ladder. They're carving income paths of their own—sometimes inside the office, sometimes outside of it, and often both.
You don't need to pick the 'right' path. You just need to pick the one that works for you. Whether that means having a bold conversation with your manager or turning your skills into something marketable after hours, the most important step is choosing to act.