When it comes to how to invest 100k, there are a lot of different options. You could put the money into stocks, bonds, or mutual funds. Or maybe you’re thinking about starting your own business. Whatever you choose, make sure you do your research first!
In this guide, I will walk through the basics of investing and give you some tips on how to make the most of your 100k.
How to Invest 100k In 2022?
Here are my 14 ideas for how to invest 100k in 2022 and beyond.
1. Start a Blog or Online Magazine
Launching a blog or online magazine can be a great way to invest your hard-earned money and put it to work for you. There are countless opportunities for success in the world of blogging and online publishing, as long as you have the right approach and set clear goals from the very beginning.
Whether you’re looking to turn a profit from advertising revenue, build a loyal audience, or simply create an outlet for your own ideas and passions, starting a blog or online magazine is an exciting venture that can reap many rewards.
To get started, it’s important to clearly define your goals and find a niche that will allow you to stand out in a crowded market.
If you’re new to blogging, I would personally recommend starting a personal brand and writing blog articles on topics that intrigue your interests.
This gives you some wiggle room and you won’t end up pigeonholing yourself into a specific niche that not many people search or care about.
You can use some of your 100k to invest in content creators, and virtual assistants to help you build backlinks to other notable sites.
Blogging or starting an online magazine takes time and you won’t find success overnight. However, an initial cash investment can certainly help speed up the process and if done properly you can make that back many times over.
If you are committed and willing to put in the hard work required to maintain a successful blog or online magazine, there is no limit to what you can achieve.
P.S. if you want to learn more about how to make money online, check out our list of 27 ideas for making money online as a beginner.
2. Invest in Crypto
These days, it seems like everyone is talking about cryptocurrency. With the massive popularity of Bitcoin, Ethereum, and Litecoin, more and more people are beginning to invest in this new form of currency.
While there are certainly risks involved with investing in cryptocurrency, there are also a number of potential rewards. For one, cryptocurrency is subject to a lot more volatility than traditional investing methods. Although this can be very risky it can also be quite rewarding if you catch and ride the wave up.
Additionally, cryptocurrency is not currently subject to as much government regulation, which could provide greater protection from inflation.
Finally, many experts believe that cryptocurrency is still in its early stages of development and has a lot of room to grow.
As such, investing now could result in large returns down the road. Of course, only time will tell whether or not cryptocurrency is here to stay. But for those willing to take a risk, investing in crypto could be a wise decision.
I typically recommend putting between 5-10% of your investment funds into cryptocurrencies so that you have some exposure but not too much.
3. Invest in Stocks, Bonds, or Mutual Funds
One of the most common investment options is to invest your money into stocks, bonds, or mutual funds. Each of these investment vehicles has its own set of benefits and drawbacks, so it can be difficult to determine which one is right for you.
When it comes to investing in stocks, you’ll first need to get set up with a stock trading app. There are a variety of apps available and they may differ based on where you live. For example, we have a list of the best stock trading apps in Canada and in the US you can choose an app like Robinhood or one of their alternatives.
With stock investing you have the potential for greater returns, but also a greater risk of experiencing losses. Stocks are essentially shares in specific companies or industries, meaning that if that company or industry does well, you profit from your investment.
However, if the company or industry struggles financially or goes out of business entirely, you could lose some or all of your original investment. This makes stock investing a good choice for those who are comfortable with taking on some risk and who have the capital available to make significant investments.
I personally invest a significant portion of my money in stocks and if you’re interested in seeing the trades I make in a smaller account of mine, check out my stock trades.
Alternatively, you could choose to invest in bonds instead. With bonds, your money is typically loaned out to a government or corporation in exchange for interest payments on top of your initial investment amount. Thus, while bonds offer less opportunity for significant return than stocks do, they also carry less risks due to their relative stability and can therefore be a good option for cautious investors looking for consistent returns over time.
Finally, mutual funds are another popular investment vehicle. Mutual funds are essentially groups of different stocks or bonds that are managed by a professional fund manager. When you invest in a mutual fund, you are pooling your money with other investors and entrusting the fund manager to make decisions on how to best grow your investment. This can be a good option for those who want to invest in stocks or bonds but don’t have the time or knowledge to do so themselves.
So, how do you decide which investment vehicle is right for you? Ultimately, it depends on your financial goals and how much risk you’re willing to take on. If you’re looking for the potential for high returns, investing in stocks may be the right choice for you. However, if you’re more interested in stability and consistent growth, bonds or mutual funds may be a better option. Carefully consider your options and choose the investment strategy that best aligns with your goals.
4. Invest in Peer-To-Peer Lending
One option that you may not have considered when determining how to invest your 100k is peer-to-peer lending. Peer-to-peer lending platforms like Kiva or Prosper connect investors with borrowers who need a loan.
The loans are generally for small amounts and have a relatively short repayment period. The interest rates on these loans are usually higher than what you would get from a bank, but they are still lower than many other types of investments.
And because the loans are usually secured by collateral, there is less risk involved. So if you’re looking for a way to earn some additional income, peer-to-peer lending could be worth considering.
5. Invest in a Franchise
Investing in a franchise can be a great way to invest your 100k and build your own business plus create financial security for yourself. Franchise systems offer many benefits, including ready-made business plans, established customer bases, and support from the franchisor.
As long as you have the resources and commitment to take on the responsibilities of running a business, investing in a franchise can be an excellent choice. Whether you’re looking to launch your own restaurant or start up a new carpet cleaning service, choosing the right franchise can make all the difference between success and failure.
You can even use a franchise directory to get more information about popular franchises including what is involved in running the business and the investment required.
So if you’re looking for opportunities to grow your career and build your wealth, consider exploring the world of franchising today. With the right planning and dedication, you could well be on your way to becoming your own boss!
6. Invest in Collectibles
Collectibles can be a great investment, especially if you have an eye for unique items that are in high demand. Whether you are interested in art, wine, or vintage cars, there are many ways to get started with collecting.
For example, if you are passionate about modern art and photography, there are countless artists and galleries to explore online. Likewise, if you love wine or whiskey, there are many venues where you can find rare varieties to add to your collection. And of course, if vintage cars are your thing, there are countless shows and auctions where you can find exceptional vehicles at affordable prices.
With the right research and planning, investing in collectibles can be an exciting and enriching way to build wealth and enjoy your passions at the same time!
What’s more, if you find a good deal you’ll be able to flip your investment for a quick profit. Otherwise, if you find the right collectible simply purchase it and wait a few years for its value to increase.
7. Donate to Charity
If you’re looking for an investment that benefits both you and the greater good, then donating to charity may be the right choice for you. By investing 100k in charitable organizations, you are not only helping to support causes close to your heart, but you are also getting a pretty hefty tax benefit.
With so many worthy causes in need of support these days, there’s no shortage of ways to make a positive impact with your investment. Whether it’s feeding the hungry or protecting our environment, every donation directly helps people and initiatives in need, making it one of the most rewarding choices that an investor can make.
So if you want to do good while saving money on taxes whether for yourself personally or your business, consider finding and donating to a charity of your choice.
8. Purchase an Existing Business
Investing 100k in an existing business is a great way to hit the ground running. With a solid foundation already in place, you will benefit from the expertise and experience of the existing team, as well as all of the revenue that they have already generated.
By purchasing a business with a strong reputation and loyal customer base, you will not have to worry about building your own customer base from scratch. With these advantages in mind, it’s easy to see why investing in an established business is one of the best ways to make your 100k go as far as possible.
Whether you’re looking at purchasing a bricks and mortar shop or you’d prefer to run an online business (such as a Shopify dropshipping store), be sure to first do your due diligence. Ask a lot of questions and have a professional review the business for you.
If everything checks consider making an offer and becoming the proud new owner of a business.
9. Pay Off Debt
While there are many different ways to invest your money, one of the smartest things you can do with $100,000 is to pay off any “bad” outstanding debt you may have.
What I mean by “bad” debt are things that have very high-interest rates like credit card debt or high-interest loans.
Not only will paying these off improve your financial stability and peace of mind, but it could also save you a considerable amount of money in interest payments over the long term.
Of course, everyone’s situation is different, so it’s important to consider all of your options carefully before making any decisions. However, if you’re struggling with high-interest debt, paying it off should be a top priority.
By investing in your future financial well-being, you can make a real difference in your overall financial health. So, if you have the opportunity to pay off your debt, don’t hesitate – it could be one of the best investments you ever make.
10. Invest in Real Estate
Investing in real estate can be a great way to grow your wealth over time. Real estate is typically one of the best long-term investments, as values generally appreciate year after year.
In addition, investing in real estate offers many other valuable benefits, such as stable rental income and the potential to build equity over time.
With these advantages in mind, I would certainly recommend considering investing 100k into a real estate investment vehicle of some kind. Whether you choose to purchase a rental property or invest in a REIT, you can feel confident that this decision will pay off in the long run.
11. Buy Silver or Gold
Two popular choices when it comes to investing in precious metals are purchasing silver and gold. Both metals have a long history of being used as currency and store of value, and they also offer a number of benefits for investors.
For example, silver and gold are both durable and portable, making them relatively easy to transport and store. They also have a relatively low correlation to other asset classes, which means they can help to diversify a portfolio. Additionally, both metals tend to hold their value well during periods of inflation.
So, which is the better investment? That depends on a number of factors. Silver is often seen as a more volatile investment than gold, which means it can offer higher potential returns but also comes with more risks.
Gold, on the other hand, is typically more expensive than silver, so investors need to be prepared to make a larger initial investment. Ultimately, the best metal for investing will depend on the individual investor’s goals and objectives.
12. Put the Money Into a High Yield Savings Account
Another way to invest 100k is to put the money into a high yield savings account. This can be a good option for people who want to earn interest on their investment but don’t want to take on any risk.
Of course, the downside to this option is that your potential yield will be much lower than if you invest in stocks or mutual funds. However, if you are approaching retirement or want to find a safe place for your emergency fund, consider putting your money into a high-yield savings account and sleep well knowing that the value of your investment will go nowhere but up.
13. Invest in a Startup
Investing in a startup can be a risky proposition, but it also has the potential for great returns. With a little bit of research and due diligence, you can identify promising startups that have the potential to deliver high returns on your investment. You can check out a platform like SeedInvest to find startups that require capital in exchange for part ownership.
Consider evaluating factors such as the company’s management team, their track record in the industry, and their business plan and strategy. Additionally, consider getting involved with the company in some way; whether through direct participation or by supporting them through mentorship or other resources.
With careful consideration and good timing, investing 100k in a startup could yield tremendous returns for years to come. And ultimately, that’s what smart investing is all about: maximizing your chances for success without taking unnecessary risks.
So if you’re looking to expand your portfolio and diversify your investments, then why not consider putting some of your hard-earned money into an up-and-coming startup? The payoff could be well worth it.
14. Invest in Your Education
Investing in your education is one of the best ways to ensure a bright future for yourself. By pursuing higher education, whether through a traditional university or an online program, you gain a wide range of valuable skills and knowledge that will help you succeed in almost any field.
Additionally, investing in your education gives you access to valuable resources that can give you a competitive edge over other job seekers. Whether learning new technical skills or developing a new network of contacts, each step you take towards expanding your knowledge pays dividends for years to come.
So if you have the opportunity to invest 100k in your education, don’t hesitate – it’s one of the best investments you can make!
In closing, congratulations on saving 100k and deciding to invest it! That’s a lot of money, and it’s important to make sure that you’re making the best decisions with it.
So, how should you invest your hard-earned $100,000? I recommend a diversified portfolio that includes 3-5 of the options mentioned in this article. If you want to do more, go for it! Just be sure not to spread yourself too thin. And remember to keep some cash on hand for emergencies. Whatever you decide, make sure to consult with a financial advisor to create a plan that meets your specific needs and goals.