15 Ways to Invest $10,000

Joseph Meyer
Written by
Last update:

Top 15 Best Ways to Invest $10k in 2021

Invest in a High Yielding Savings Account or CDs

It might be hard to believe, but there are savings accounts out there that pay upwards of six percent interest. And CDs can pay as much as five percent. Even if your bank doesn’t offer these kind of rates, you can always search for a better deal online.

The risks are low and the rates are high, making CDs and high-yield savings accounts attractive investment options in comparison to other investments. CDs are very safe because you can’t touch the principal for the specified period. Plus, you can get your money back before the end of the term simply by paying a small penalty. Savings accounts, on the other hand, allow you to make smaller withdrawals without penalty, and if you have a checking account, no-fee ATM withdrawals are only a few blocks away.

When it comes to deciding which type of investment account to open, there’s a trade-off: CDs tend to pay higher interest rates, but the access to your cash is limited; while high-yield savings accounts tend to pay a lower interest rate, but you have access to your funds immediately.

Either way, you’ll want to keep an eye on the rate of inflation for any expected changes in the rate you get on your deposit.

Auto-Pilot Investing

Many financial planners and investment professionals would recommend using active strategies using mutual funds, if your goal is long-term investing in stocks, bonds, and similar product.

Even if you have already invested in such vehicles, however, it may be useful to consider a more passive approach, where your investment is made along with those of many others in the same pool.

An emerging category of investment products has been dubbed by some as Robo Advisors or Automated Advice. As of now, there are few mainstream mutual product offerings, and the investment option you would like to choose will depend on your current assets, risk-tolerance and time horizon goals.

However, some Robo-Accounts are very simple to set up. For example, a retirement account could be launched with little more than two forms of identification, including a SSN or TIN, and some answers to personal questions about income, taxes, dependents, etc.

This information can be self-reported and, as Robo-Accounts generally are created with little to no account balances, costs are kept down. Another significant advantage is the relative simplicity of managing the account. You can monitor the account online, or with little difficulty via text or email as well.

Peer to Peer Lending

Peer to peer lending is the practice of lending money to individuals or businesses through online services that match lenders with borrowers. Peer to peer lending companies provide an online platform that allow investors to directly fund loans. Many peer to peer lending companies offer an interest rate that is generally higher than a normal savings account.

The best peer to peer lending companies let you choose the level of risk you are comfortable with and let you pick from a variety of loans to invest in. As a result, peer to peer lending is a good option for investors that may not have the funds or time to qualify for an individual retirement account or other type of investment account.

Real Estate

Buying a house is probably the most common way to invest large sums of money. Houses have provided both shelter and investment opportunities for people for hundreds of years.

There are many different ways to purchase real estate. Many of your options will depend on your location. Let’s take a look at your top five real estate investment options.

Rent it out

Perhaps the easiest way to own real estate is to rent it out. If you have a large sum of money and want to start earning a return on your money, this is a great way to do it.

You get a regular rental income each month, you don’t have to do much work in terms of house maintenance, and you can also potentially charge higher rent for a larger property. The downside is that if you should decide to move somewhere else, you’ll be stuck having to either sell or rent out your house.

Vacation home

Some people decide to buy a vacation home. This is one investment where you won’t get much of an income, but it will add value to your overall net worth. As you pay off your mortgage, you make a profit. Then, you can rent out your house occasionally or on long-term lease.

Long-term rental

DIY Stock Market

This is something I have not tested but I have been watching it for about a year.

There is a lot of buzz on Amazon and Facebook talking about buying a mechanical computer that will follow a set of programmed instructions when you will no longer be around to manage your portfolio.

The advantages of this approach (other than being a genius) is that it does not tax the "you" you, you can set up a computer respond to certain events in the market and it will be a totally hands off approach. Of course, nothing is perfect and I know that mutual funds would be better in this regard.

One concern I have is that the computer does not always keep up with the market.

Build Your Own Motif

Investing in your own motif is something that money managers have been talking about long before the topic became a hot topic. It’s also one of the most effective ways to build wealth, because you have the added benefit of getting greater tax deductions.

If you’re not familiar with the term, a motif is an investment, like real estate or a small business, that’s designed to help you achieve at least three goals: a part of your investment goes towards the building, rest goes to retirement, and there’s also a portion allocated to education or towards your business.

There are many steps you need to take to get started, including determining your needs from the property or business, finding the right investment opportunity, and determining the amount of risk and money you want to invest. Whatever your reasons, be sure to consult a professional to help you find the right solution.

Coaching Programs

Coaching can be very effective for people starting out with an online business. A good coach not only teaches you the basics, but can also act as a critical outside eye looking for things you might otherwise miss.

The nice thing about coaching is that you generally only do it for a few hours, a couple times a week. The phone calls are usually pretty short, and there’s normally plenty of time to think through what you discussed and implement any new ideas you’ve come up with yourself.

Check out the prices of popular coaches, and be willing to try out a couple until you find someone you like.

Getting a Designation

Investing in your education is probably the best investment for your future. There are many different financial designations that you can get. Some of these are:

  • Enrolled Agent (EA)
  • Certified Financial Planner (CFP)
  • Chartered Financial Consultant (ChFC)
  • Chartered Financial Analyst (CFA)
  • Certified Public Accountant (CPA)
  • Personal Financial Specialist (PFS)
  • Chartered Life Underwriter (CLU)
  • Chartered Financial Consultant (ChFC)
  • Certified Financial Planner (CFP)
  • Chartered Life Underwriter (CLU)
  • Chartered Investment Counselor (CIC)
  • Accredited Asset Management Analyst (AAMA)
  • Chartered Senior Life Underwriter (CSULA)
  • Certified Elder Financial Advisor (CEFA)
  • Certified Financial Planner (CFP)

Each of these designations has their own unique job description.

Going Back to School

Choosing to pursue a higher education is a decision that many people make. With the rising cost of tuition and an unfortunate economic climate, going back to school is not always an option that is looked upon favorably. But even in times when the economy is at its worst, the option is quite appealing for the many that feel they could be doing more.

Online Courses

Starting Your Own Business

Starting a business can be a risky business. The rewards, however, can be great. You can build a business from scratch, set your own hours, and work toward your financial goals while helping other people.

Starting a Blog

What gets measured, gets managed. In today’s digital world, professors, students and professionals can all use a blog as a means of getting their voice heard in the subject of their expertise. In today’s job-hopping world, a blog can add to a resume and a blog job title can add to a resume (although we all know that you don’t really need one).

To be successful with a blog, one needs to know how to write and have graphic design and multimedia skills. Every college campus has someone “ the person who is the respected op-ed columnist for the college paper, writer for the school literary magazine or the one who writes movie reviews at the school radio station. This will be your audience. The goal is to network with these people.

Start writing examples on your blog and submit them to the campus papers. The op-ed page will publish these and you can use them at your school and post them on your blog. Once the pieces get published, you can list them on your resume. Another source of content you can draw from for your blog are the classes that you are taking. You can blog about the contents and challenge your classmates and professors to contribute. You can blog about the new techniques that you are learning. The audience for this material is each of the classes that you are taking and the professors that are teaching you.

Launching a Podcast

Podcasts have exploded over the past few years. They provide great information if you have the time to sit and listen. For new entrepreneurs, the idea of investing in a website for a podcast is a bit daunting. However, the podcast doesn’t need to be a real expense. You can launch a podcast with a few simple tools that can be used for other business functions as well. Here are the items you will need.

Resell Products on Amazon FBA

If you’re looking for an investment that can bring you tons of extra cash fast, you should consider focusing on products that you can sell on Amazon FBA.

Although there are thousands of profitable products that you can sell on Amazon with low to medium levels of competition, one of the best ways I know is to be able to find high margin items that are usually hard to find in retail stores.

There are three main reasons why reselling items on Amazon is better than other investing alternatives.

Amazon is the biggest online shopping platform in the world. According to them, it has over 300 million active users.

Amazon has a sophisticated customer service system. As the biggest online retailer, Amazon consistently works to keep buyers happy. It has been a super simple experience for me personally, and I’ve never had to wait more than a day or two to get an answer regarding the status of my purchase.

Over 40% of online shoppers start their searching at Amazon. On average, each visitor will spend at least 10 minutes on the site. What’s more, people tend to buy items that are more expensive than what they used to purchase.

Pay Off Debt

This is often the first place that people go when they receive sudden windfalls, however if you have existing debt, this is not the best place to put your money. Instead, pay off bills, particularly credit cards or automobile loans before you invest your money.

The Bottom Line

  • Max Some or All of Your Tax Advantage Retirement Fund
  • Live Off Your Paycheck
  • Pay Off Your Mortgage or Loans
  • Put It In a CD or Money Market Account
  • Save It For a Huge Home
  • Save It For a Huge Trip
  • Buy a New Car
  • Buy a New Gadgets
  • Pay For a College Education
  • Start a Business
  • Supplement Your Income
  • Get a Guy/Girl Buy You
  • Take Some Classes
  • Live Like a Millionaire For a Week
  • Start a Business
  • __________________

About the Author

Kenneth Lerner is the founder of Stock Market Guides. He started the website back in 2012 to better help his friends and family understand investing. Kenneth gained international attention after posting an article on a two-page stock market wealth building plan. The article went viral and was read by over 200,000 people. Since that time, it has been shared hundreds of thousands of times across social media and has been viewed millions of times on other websites.

You Might Also Enjoy