What would you do if you suddenly had $10,000 in cash? Want to splurge on a journey to a remote corner of the world? Are you changing for a better vehicle? Are you buying new furniture and a spa for your garden terrace?
These ideas may be the first ones that come to mind, but maybe they are not the ones you’ll be proud of in ten or twenty years. If you have no debts with a high interest rate that you can pay, your best bet with “found money” is always to invest them in the long run.
Why? Because when you invest money instead of spending to amortize assets, you are preparing for more financial freedom and better results later.
5 Clever Ways to Invest $10K
But how should you invest $ 10,000? While there are many smart ways to invest your money, the right choice depends on your risk appetite, investment strategy, and long-term goals. Of course, your best option also depends on your individual needs and what you need to move on to the next stages of your business or personal development.
If you have found money this year, there are five ways to invest that you could pay for:
- Real estate investment online
Today, investments are made in real estate, but that does not mean everyone wants to own it. All you have to do is take care of the tenants or paint the interior to get rid of them, not to mention nocturnal calls or expensive repairs.
That’s why investing in fund-raising is a good idea. Fundrise.com is an investment platform that allows you to invest in private real estate without worrying about the details associated with ownership of a traditional rental property.
You only need a minimum of $ 500 to start fund-raising, so it’s an ideal option if you have $ 10,000 to play. Once you’ve opened an account, you can invest in major cities such as Los Angeles, Washington DC and Jacksonville, Florida. Not only do they provide plans that support additional income, they are also good for a balanced investment and long-term growth.
RealtyShares is another option for real estate investment online. Property stocks have appeared in the Wall Street Journal, Bloomberg and Forbes and are already used by 120,000 investors in the country.
Real estate crowd funding allows you to invest in real estate without having to own a property and without having to borrow hundreds of thousands of dollars. These and other reasons are why online businesses like RealtyShares and Fundraise are so popular and why they can continue to grow in the future.
- Peer-to-peer Loans
Peer-to-peer lenders like Lending Club are another smart platform to determine if you have a few hundred dollars to invest, about $ 10,000. Lending Club is a peer-to-peer lending platform that allows you, as an investor, to receive interest on your loans instead of traditional banks.
As an investor in the Loan Club, you can distribute your investment in hundreds or even thousands of loans in increments of $ 25. The credit club has offered a historical return of 4-6% per annum after the default, though you can get a higher return if you get riskier loans.
You only need $ 1,000 to start as an investor in the Lending Club. You can automate your investments based on a pre-selected strategy or manually select loans that meet your criteria.
- Health Savings Account (HSA)
A Health Savings Account (HSA) offers another $10,000 in cash that can be invested. This type of account is available to individuals and families who benefit from high deductible health care plans, which offer a wide range of tax benefits for today and for the future.
For starters, the money you pay into a health savings account (HSA) is deductible from your federal taxes. You are ready to retire from the pension. Families can contribute up to $ 6,900 in 2018, while those with a high deductible plan can save up to $ 3,450. People over 50 can save an additional $ 1,000 per year.
Once you are 65 years old, you will not be able to save money on HSA (plus interest). This means that you can use these funds for retirement or anything else at that time. You want to save your HSA money for health expenses.
HSA has a triple tax advantage! You can deduct your contributions on your taxes, your money is tax free and you can withdraw the tax free money later. It is not better than that.
- Coaching or mentoring
Although investing in coaching or some form of tutoring is not as traditional as the other options on this list, this type of investment may be worth it. Making a great economic and emotional return.
How can I know? Throughout the years, I have been investing in various coaching and mentoring programs, including a $ 25,000 program! Although it is a lot of money, there is no way to get a better return than what I get when investing in my own personal development. I learned a lot from the groups in which I spent more than $ 25,000 in income later.
The Final thought
If you end up with extra money this year, you may want to increase this money over time. Investing $ 10,000 today would leave you $ 32,071 if you got 6% and you would leave the money alone for twenty years. Let him rest for thirty years and you would have $ 57,434.
You could have even more money if you get a higher rate of return, but it’s not a radical change. Once you learn how to make your money work for you, the possibilities are endless.