So, you have $10,000 (or more) saved, and you’re looking for smart ways to invest your money. Rather than leaving the cash in your account or splurging it on a big purchase, sometimes it makes sense to try for a little return on your savings. However, $10,000 isn’t enough for a real estate down payment, and it may not even be enough to pay off all your debts, so you might ask yourself if the money is worth investing at all.
The good news is there are many ways you can invest your $10,000, but where to put that extra money isn’t always an easy decision. To help you make a smart choice, here are five of your best investment options.
Use a Robo Advisor Platform
Robo advisor investing (also known as auto-pilot investing) refers to an online management platform that will handle all your investments for you. The “advisor” makes decisions regarding selection, asset allocation, rebalancing and tax loss harvesting – and all for a management fee of around 0.35%. This amounts to only $35 of your invested $10,000, so it’s well worth taking the plunge as there is barely any risk involved. Some platforms like Betterment even give you three months free when you sign up.
Invest In Vintage Wine
Vintage wine is a valuable commodity, but you need to invest your money wisely to avoid losing it. Shop around for the best market price and then buy the finest wine you can afford. Bear in mind that opting for quality over quantity will reduce storage costs and increase the return on your investment.
It’s also incredibly important to store your wine in the right conditions, and in a luxury wine storage facility, so use a licensed company like Octavian Vaults. Experts suggest investing in your wine for a minimum of five years, so this isn’t the best option if you’re looking for a fast return.
Sell With Fulfillment by Amazon (FBA)
Selling through Amazon’s FBA is the easiest way to start an online business if you have some extra cash to invest. As a seller, you will source and purchase the products at a bargain price, then sell them on for profit through Amazon. The great thing about FBA is that you don’t need a whole lot of time or money to invest, and Amazon handles all of the shipping for you.
Use Online Brokerage Accounts
Another option is to open a discount brokerage account through a company like Etrade or Scottrade. These platforms have all the investment tools you need (including educational resources if you’re new to the game), and they advertise competitive fees.
Start Your Own Business
By starting a business, you’re essentially investing money in yourself, which feels like a daunting move. However, you can start an online or home-based business with very little upfront capital, so you don’t have to use everything you have in your savings account.
If you’ve never thought about launching a startup, then consider this: a business could provide you with income for the rest of your life, so it’s perhaps the most valuable investment you could make with your $10,000.