Are you wondering how to invest 100k? Perhaps you’ve just sold your home, inherited money or maybe you won the lottery. Either way, getting such a windfall happens to many, at least once in a millennials’ lifetime. And it’s natural to seek out the best ways how to start.
When it’s time To Invest Your 100k
Assuming all the above is complete, then you can move forward. But, until that time, there’s no point thinking about where to invest that 100k. For example, if you don’t follow a budget or don’t have an emergency fund, or you’re carrying high-interest debt, you’ll need to tackle those issues first. Indeed, these are far more important.
1. Real estate investments
When thinking of investing, real estate is often the first thing that comes to mind. Growing up, I remember my parents saying, “If only I had 100k, I’d pay off the mortgage.” While paying off the mortgage might make you sleep better at night, it’s an ineffective way of investing in real estate.
2. Invest in yourself
It might sound cliche, but I’ve found the investment that pays the best returns is an investment in yourself. When consumers invest in education, for example, they can get a higher-paying job. Or, if someone seeks out training to start and run a business, they could create generational wealth to pass down to their children.
Like any investment, it’s essential to start with a little due diligence when considering investing in education. For example, if you’re going to invest in a course, ask yourself, what will that get you in the end? Will you get a promotion? If you’ve got 100k to invest, why not consider putting it toward education?
If you’re like me, you might find yourself thinking up any number of business ideas daily. Therefore, if you’ve got a business idea, you could make it a reality by using some of your 100k. To be sure, a business could begin from any number of side hustles. But you’ll want to be smart about it!
5. Stock market
There are several advantages to investing in the stock market. For example, with $100k, you can get better diversification that would be otherwise different from any other investment class. Indeed, investing in stocks gives you a chance to buy in various industries. And the returns can be quite juicy as well.