5 Best Ways to Invest $100,000


Let’s say you have $100,000. What would you do? Are you going to save it for your future? Pay your mortgage? Save it for children’s college? But what if you could do something that will get you more money. Why not invest in a place where you can get some returns? First of all, $100,000 is a lot of money. More than enough to start your business. But if you start a business then you have to work hard every day to get your investment and see profits. Investment is not like that. It is a smart approach to make money. Not saying that it doesn’t have its own challenges and risks but it worth the rewards. You can make a safe investment where you can get guaranteed returns. So you don’t have to worry about losing your money. Making an investment can actually promise a secure future. 

Before knowing what are some of the best ways to invest you need to know certain things. 

Pay your debts before investing

This is the first and foremost thing you have to do if you have $100,000. Pay your debt is the best thing you could do when you have money. Once you pay your debts you won’t have any burden on your shoulders. You should do this as soon as possible if you have high-interest debt. The average interest on credit cards is at least %16 which is more than what you would get in a year if you invest in the stock market. If you have multiple credit cards do this immediately. This will save y from paying interests. 

Have an Emergency fund

If you don’t have an emergency fund then create one when you have money in your hands. For those of you who don’t know what it is, an emergency fund is a bank account where you can put money aside to be used in unexpected situations where you have to cover a large amount of money. Mostly people use this money to cover emergency medical expenses, costly car fixes, or when people are unemployed. Just imagine if you suddenly had an accident and medical bills are very high then how are planning to pay them? Or how are e to repair your car if it got severely damaged? 

The emergency fund will help you in handling all those expenses. If you already have an emergency fund look at how much you have in your account. Make sure that your account is well funded. The account should have enough balance to cover at least six months of expenses. 

If you took care of all these things then you can make investments. Here are few ways you can invest your $100,000

Real estate

Real estate is one of the best ways to invest your money. If you have $100,000 dollars and you don’t know where to invest then you should definitely consider investing in real estate. But not everyone knows about how real estate investments work. So if you don’t know how to invest in real estate then contact people who are already in that business. Meet people who are investing in real estate and making money. Ask them what are the ways in which you should invest. More importantly, ask them what are things you should not do. Know what kinds of properties you should invest in and how much you can charge for renting them out. Understand how to choose locations. But keep in mind that you have to be aware of all aspects when you are making this type of investment.

Stock market

The stock market is one of the investment options when you have $100,000 in your hand. This might be one of the options that you will be least inclined to choose. There is a good reason for people to do this. Most of the people have known or heard of someone close to them losing money in the stock market. But don’t let all those things hold you back if you are keen on investing in the stock market. There are two ways in which you are going to get paid. The first by the dividend that is given to the company to its shareholders. But keep in mind that these dividends are not guaranteed. The other way is by selling your stock when the prices of your stock increases. This investment is very risk but there is a chance of high returns.

Mutual funds

This is one of the safest options to choose from when you have $100,000 for investment. Mutual funds are when you invest your money in a pool along with other investors. There are lots of advantages of investing in mutual funds. The investment might be on bonds, stocks, or both. Mutual funds have a professional manager who takes care of the funds. This is a great option for people who want to invest in stock but do not have the time to do research. All you have to do is research what are the best mutual fund companies around and invest in them. 

Peer to peer lending

Peer to peer lending is a safe option for the most part if you are looking for a guaranteed return. The traditional type is you will be lending money to the banks which they will use for their own ventures. But peer to peer lending is different. In this type of lending, you will be cutting out all the middlemen. You will be in direct contact with people who need your money. This kind of lending actually promises higher returns compared to traditional lending. But there is also a risk in this too. The borrower must be a trusted person in order to lend money. 

Robo advisors

You probably might not have thought of this option as this one is quite unconventional. But this is one of the modern methods of investing your money. You have these applications that are easy to use. If you are beginners then these apps will help you in learning quickly on how to invest. Some of the applications automatically invest and notify the balance once the trade is done. While the other applications let you choose where you want to invest. More and more people are using these kinds of applications as they charge less and offer valuable guidance on how to invest. Just check out the fees associated with each app before investing your money.


Investing $100,000 wisely will get you returns that will assure you a secure future. Rather than making an investment in one thing make different types of investment. But make sure that you don’t have any debts before making an investment. Making different types of investment will not affect you much. You have to keep in mind that no matter what kind of investment you make there is always a little risk involved. Have a strong plan before you make an investment.

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