How to Invest 20k: 10 Ways To Secure Your Financial Future

How to Invest 20k: 10 Ways To Secure Your Financial Future

How to Invest 20k: 10 Ways To Secure Your Financial Future

How to Invest 20k: 10 Ways To Secure Your Financial Future

January 10, 2024

January 10, 2024

January 10, 2024

January 10, 2024

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How to Invest 20k
How to Invest 20k
How to Invest 20k
How to Invest 20k

Looking for smart ways to invest $20,000? You’ve come to the right place. Deciding where to invest any sort of money can seem a bit overwhelming given there are so many different options available. 

From low-risk options to high-risk options, we’ve compiled a list of some of the best ways of how to invest 20k. Keep reading to discover 10 ways that will help you with your decision to better your financial future.

1. High-Yield Savings Account

One way you can invest your money is by putting it into a high-yield savings account. These accounts offer much better interest rates, sometimes 16x more, compared to a traditional savings account. Money put into a HYSA is FDIC-insured which means that it’s protected up to a certain amount, usually $250,000. For those looking to play the long game, high-yield savings accounts are a great and safe investment option.

Looking for smart ways to invest $20,000? You’ve come to the right place. Deciding where to invest any sort of money can seem a bit overwhelming given there are so many different options available. 

From low-risk options to high-risk options, we’ve compiled a list of some of the best ways of how to invest 20k. Keep reading to discover 10 ways that will help you with your decision to better your financial future.

1. High-Yield Savings Account

One way you can invest your money is by putting it into a high-yield savings account. These accounts offer much better interest rates, sometimes 16x more, compared to a traditional savings account. Money put into a HYSA is FDIC-insured which means that it’s protected up to a certain amount, usually $250,000. For those looking to play the long game, high-yield savings accounts are a great and safe investment option.

2. Real Estate

Whether you’re flipping houses or investing in rental property, investing in real estate can be a highly profitable avenue if done properly. It’s important to do the necessary research to make sure the location is desirable for people to want to live in and has the potential for the investment. Not only can you earn a steady stream of income from rental properties, you can also benefit from the appreciation of properties in the long run. People with enough real estate investments can make $10k a month, even more.

3. Peer-to-Peer Lending

This type of investment cuts out traditional banks and involves connecting borrowers with investors. Peer-to-peer lending is where you lend money either to an individual or business, usually through an online platform. P2P lending comes with a level of risk but does provide higher returns than your traditional bank account.

2. Real Estate

Whether you’re flipping houses or investing in rental property, investing in real estate can be a highly profitable avenue if done properly. It’s important to do the necessary research to make sure the location is desirable for people to want to live in and has the potential for the investment. Not only can you earn a steady stream of income from rental properties, you can also benefit from the appreciation of properties in the long run. People with enough real estate investments can make $10k a month, even more.

3. Peer-to-Peer Lending

This type of investment cuts out traditional banks and involves connecting borrowers with investors. Peer-to-peer lending is where you lend money either to an individual or business, usually through an online platform. P2P lending comes with a level of risk but does provide higher returns than your traditional bank account.

Earn money on a high yields savings account

Looking to put your money to work? Discover the right bank account to boost your savings.

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4. Certificate of Deposit (CD)

An alternative to a high-yield savings account, CDs are another excellent option for how to invest 20k, especially if you don’t want to take on much risk. Similar to high-yield savings accounts, CDs offer higher interest rates than savings accounts. The one difference is that with a Certificate of Deposit, you can’t touch your money for a certain period of time. Depending on the terms it can be a few months or even years. Withdrawing the money before the term is up may lead to being penalized.

5. ETFs and Mutual Funds

Investing in ETFs and mutual funds is like the saying “don’t put all your eggs in one basket.” This type of investment allows you to diversify your portfolio by holding a variety of securities. By investing your $20,000 in ETFs and mutual funds, you can potentially earn high returns without having to manage individual stocks.

invest $20,000

6. Stocks

Figuring out how to invest 20k shouldn’t be a dreadful task,  neither is investing in stocks. If you have the time and knowledge to do so, investing in stocks is an excellent way to earn high returns. However, just like with P2P lending, there are some high risks that come along with it.

When you purchase a stock, you own a small piece of that company. Unlike ETFs and mutual funds, purchasing individual stocks allows you to choose what you want for your investment portfolio. So in order to decrease the risk, it’s smart to invest in well-known companies with long histories of success.

 7. Start A Business

Starting a business might be a dream of yours. With 20k to invest, it might just be enough to start something small. This is a high-risk investment option but it’s something that you’re in full control of. If done right, you could potentially yield extremely high returns down the road. 

girl celebrating financial freedom

8. Cryptocurrency

Gaining much popularity as of late, cryptocurrency is a digital asset that can be bought and sold. If you have the tolerance to take on some risk, then investing in cryptocurrencies can be for you. 

While risky, cryptocurrencies present a promising investment opportunity with large returns. Just like all investing strategies, it’s important to do your research because the cryptocurrency market can be extremely volatile.

9. Purchasing Artwork

While this might not seem like the ordinary investment option, it can be quite profitable! The value of artwork can appreciate significantly over time. So don’t just decorate your home, make money while doing so.  so you can decorate your home and make money while doing so.If you have an eye for art, investing in artworks can be a great option of how to invest 20k. 

purchase artwork invest $20k

10. Education  

Lastly, investing in yourself can produce a great return on investment. Putting the money into going back to school to get another degree or a professional certificate can be a great way to invest your $20,000. These degrees or certificates can advance your career and increase your earning potential. 

Bonus: Bonds

Bonds provide a fixed income with a predetermined interest rate. Investing in bonds is a less risky play than stocks and is a good method for people who want to invest conservatively. Knowing how to cash in savings bonds is also important so you know how to maximize your money.

4. Certificate of Deposit (CD)

An alternative to a high-yield savings account, CDs are another excellent option for how to invest 20k, especially if you don’t want to take on much risk. Similar to high-yield savings accounts, CDs offer higher interest rates than savings accounts. The one difference is that with a Certificate of Deposit, you can’t touch your money for a certain period of time. Depending on the terms it can be a few months or even years. Withdrawing the money before the term is up may lead to being penalized.

5. ETFs and Mutual Funds

Investing in ETFs and mutual funds is like the saying “don’t put all your eggs in one basket.” This type of investment allows you to diversify your portfolio by holding a variety of securities. By investing your $20,000 in ETFs and mutual funds, you can potentially earn high returns without having to manage individual stocks.

invest $20,000

6. Stocks

Figuring out how to invest 20k shouldn’t be a dreadful task,  neither is investing in stocks. If you have the time and knowledge to do so, investing in stocks is an excellent way to earn high returns. However, just like with P2P lending, there are some high risks that come along with it.

When you purchase a stock, you own a small piece of that company. Unlike ETFs and mutual funds, purchasing individual stocks allows you to choose what you want for your investment portfolio. So in order to decrease the risk, it’s smart to invest in well-known companies with long histories of success.

 7. Start A Business

Starting a business might be a dream of yours. With 20k to invest, it might just be enough to start something small. This is a high-risk investment option but it’s something that you’re in full control of. If done right, you could potentially yield extremely high returns down the road. 

girl celebrating financial freedom

8. Cryptocurrency

Gaining much popularity as of late, cryptocurrency is a digital asset that can be bought and sold. If you have the tolerance to take on some risk, then investing in cryptocurrencies can be for you. 

While risky, cryptocurrencies present a promising investment opportunity with large returns. Just like all investing strategies, it’s important to do your research because the cryptocurrency market can be extremely volatile.

9. Purchasing Artwork

While this might not seem like the ordinary investment option, it can be quite profitable! The value of artwork can appreciate significantly over time. So don’t just decorate your home, make money while doing so.  so you can decorate your home and make money while doing so.If you have an eye for art, investing in artworks can be a great option of how to invest 20k. 

purchase artwork invest $20k

10. Education  

Lastly, investing in yourself can produce a great return on investment. Putting the money into going back to school to get another degree or a professional certificate can be a great way to invest your $20,000. These degrees or certificates can advance your career and increase your earning potential. 

Bonus: Bonds

Bonds provide a fixed income with a predetermined interest rate. Investing in bonds is a less risky play than stocks and is a good method for people who want to invest conservatively. Knowing how to cash in savings bonds is also important so you know how to maximize your money.

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Hiatus may receive compensation when you click on links associated with this Hiatus Learn Center. Hiatus is not being compensated for any application, quotation, or the purchase of any financial products.


Hiatus has partnered with MyBankTracker for our coverage of savings account products. Hiatus and MyBankTracker may receive compensation from advertisers when you click on links associated with these savings account products. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MyBankTracker does not include all companies or all savings products. 


Hiatus has partnered with CardRatings for our coverage of credit card products. Hiatus and CardRatings may receive a commission from card issuers. Opinions, reviews, analyses & recommendations are Hiatus' alone, and have not been reviewed, endorsed or approved by any of these entities.


Hiatus is not an insurer or insurance producer. Savvy is the licensed insurance producer supporting the Hiatus/Savvy program. All insurance information and underwriting is provided by Savvy and its licensed insurance partners.


Hiatus has partnered with AmONE for our coverage of personal loan products. Hiatus and AmONE may receive compensation when you click on links associated with personal loan products. In certain situations, compensation may impact where products appear on the site (including the order in which they appear). AmONE does not include all loan companies or all types of loan products.


You are being referred to ADVR LLC’s website ("Advisor") by Hiatus, a solicitor of Advisor ("Solicitor"). The Solicitor that is directing you to this webpage will receive compensation from Advisor if you enter into an advisory relationship or into a paying subscription for advisory services. Compensation to the Solicitor may be up to $2,000. You will not be charged any fee or incur any additional costs for being referred to Advisor by the Solicitor. The Solicitor may promote and/or may advertise Advisor’s investment adviser services and may offer independent analysis and reviews of Advisor’s services. Advisor and the Solicitor are not under common ownership or otherwise related entities. Additional information about Advisor is contained in its Form ADV Part 2A available here.

© 2024 Hiatus, Inc. All rights reserved

Advertiser Disclosure:


Hiatus may receive compensation when you click on links associated with this Hiatus Learn Center. Hiatus is not being compensated for any application, quotation, or the purchase of any financial products.


Hiatus has partnered with MyBankTracker for our coverage of savings account products. Hiatus and MyBankTracker may receive compensation from advertisers when you click on links associated with these savings account products. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MyBankTracker does not include all companies or all savings products. 


Hiatus has partnered with CardRatings for our coverage of credit card products. Hiatus and CardRatings may receive a commission from card issuers. Opinions, reviews, analyses & recommendations are Hiatus' alone, and have not been reviewed, endorsed or approved by any of these entities.


Hiatus is not an insurer or insurance producer. Savvy is the licensed insurance producer supporting the Hiatus/Savvy program. All insurance information and underwriting is provided by Savvy and its licensed insurance partners.


Hiatus has partnered with AmONE for our coverage of personal loan products. Hiatus and AmONE may receive compensation when you click on links associated with personal loan products. In certain situations, compensation may impact where products appear on the site (including the order in which they appear). AmONE does not include all loan companies or all types of loan products.


You are being referred to ADVR LLC’s website ("Advisor") by Hiatus, a solicitor of Advisor ("Solicitor"). The Solicitor that is directing you to this webpage will receive compensation from Advisor if you enter into an advisory relationship or into a paying subscription for advisory services. Compensation to the Solicitor may be up to $2,000. You will not be charged any fee or incur any additional costs for being referred to Advisor by the Solicitor. The Solicitor may promote and/or may advertise Advisor’s investment adviser services and may offer independent analysis and reviews of Advisor’s services. Advisor and the Solicitor are not under common ownership or otherwise related entities. Additional information about Advisor is contained in its Form ADV Part 2A available here.

© 2024 Hiatus, Inc. All rights reserved

© 2024 Hiatus, Inc. All rights reserved

Advertiser Disclosure:


Hiatus may receive compensation when you click on links associated with this Hiatus Learn Center. Hiatus is not being compensated for any application, quotation, or the purchase of any financial products.


Hiatus has partnered with MyBankTracker for our coverage of savings account products. Hiatus and MyBankTracker may receive compensation from advertisers when you click on links associated with these savings account products. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MyBankTracker does not include all companies or all savings products. 


Hiatus has partnered with CardRatings for our coverage of credit card products. Hiatus and CardRatings may receive a commission from card issuers. Opinions, reviews, analyses & recommendations are Hiatus' alone, and have not been reviewed, endorsed or approved by any of these entities.


Hiatus is not an insurer or insurance producer. Savvy is the licensed insurance producer supporting the Hiatus/Savvy program. All insurance information and underwriting is provided by Savvy and its licensed insurance partners.


Hiatus has partnered with AmONE for our coverage of personal loan products. Hiatus and AmONE may receive compensation when you click on links associated with personal loan products. In certain situations, compensation may impact where products appear on the site (including the order in which they appear). AmONE does not include all loan companies or all types of loan products.


You are being referred to ADVR LLC’s website ("Advisor") by Hiatus, a solicitor of Advisor ("Solicitor"). The Solicitor that is directing you to this webpage will receive compensation from Advisor if you enter into an advisory relationship or into a paying subscription for advisory services. Compensation to the Solicitor may be up to $2,000. You will not be charged any fee or incur any additional costs for being referred to Advisor by the Solicitor. The Solicitor may promote and/or may advertise Advisor’s investment adviser services and may offer independent analysis and reviews of Advisor’s services. Advisor and the Solicitor are not under common ownership or otherwise related entities. Additional information about Advisor is contained in its Form ADV Part 2A available here.

© 2024 Hiatus, Inc. All rights reserved

Advertiser Disclosure:


Hiatus may receive compensation when you click on links associated with this Hiatus Learn Center. Hiatus is not being compensated for any application, quotation, or the purchase of any financial products.


Hiatus has partnered with MyBankTracker for our coverage of savings account products. Hiatus and MyBankTracker may receive compensation from advertisers when you click on links associated with these savings account products. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MyBankTracker does not include all companies or all savings products. 


Hiatus has partnered with CardRatings for our coverage of credit card products. Hiatus and CardRatings may receive a commission from card issuers. Opinions, reviews, analyses & recommendations are Hiatus' alone, and have not been reviewed, endorsed or approved by any of these entities.


Hiatus is not an insurer or insurance producer. Savvy is the licensed insurance producer supporting the Hiatus/Savvy program. All insurance information and underwriting is provided by Savvy and its licensed insurance partners.


Hiatus has partnered with AmONE for our coverage of personal loan products. Hiatus and AmONE may receive compensation when you click on links associated with personal loan products. In certain situations, compensation may impact where products appear on the site (including the order in which they appear). AmONE does not include all loan companies or all types of loan products.


You are being referred to ADVR LLC’s website ("Advisor") by Hiatus, a solicitor of Advisor ("Solicitor"). The Solicitor that is directing you to this webpage will receive compensation from Advisor if you enter into an advisory relationship or into a paying subscription for advisory services. Compensation to the Solicitor may be up to $2,000. You will not be charged any fee or incur any additional costs for being referred to Advisor by the Solicitor. The Solicitor may promote and/or may advertise Advisor’s investment adviser services and may offer independent analysis and reviews of Advisor’s services. Advisor and the Solicitor are not under common ownership or otherwise related entities. Additional information about Advisor is contained in its Form ADV Part 2A available here.

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