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10 Investment Ideas with 10 Thousand Bucks

So you have 10k savings? Or just won small check from the lottery? Or maybe got a good consulting gig and now have extra ten thousands pricking you in the pockets. Whatever, you have 10 thousands, I have 10 ideas how to invest them:

1. Keep them in the bank, bonds, stocks, mutual funds

Low risk, low return

This is what most people would do and would advice you to do. It makes sense if you have more money - $200,000 for example. With $10 K in the bank you will not be rich even in lifetime. For 40 years it's going to turn into about $40K - and who knows how much will this money be able to buy then. You may only use them for some emergency fund.

In general, this is uninteresting option for such small amount of money.

2. Buy some land

Low risk, low return

This also goes in the low risk / low return category but I prefer it. I would say the risk with land is lower because inflation does not eat it. Of course you should chose land that is not subject of erosion or going underwater. But land is something real, something that can even feed you directly if ever things get really bad. Ten thousand bucks can buy you few acres depending on where you live. Sounds a good deal for me.

3. Invest in startup company

High risk / high return

Now, let's step in the other side of the coin - the high risk land. Investing in early stage companies in promissing sectors like IT or biotech can make you extremely rich. It can also eat all your $10,000 with zero return. Unless you have good experience in the sector and know how to spot the good from the bad, it's like playing the lottery.

Let's assume you want to play it. How do you find such companies?

  • Friends / colleagues who start such companies might be a good bet because you know the people. It may also be recipe for disaster if you are emotionally attached.
  • Some high risk funds invest in such companies and you can join them.
  • There are several online platforms for angel investors and venture capitalists. Your 10 thousands won't open you all doors but some sites allow such small investments.
  • Crowdfunding can be the answer for you because it will allow you diversify in several projects.

4. Start a small business

Requires work, medium risk / medium return

I'd put starting your own small business in the medium risk / medium return category. Many people would tell it's high risk, but I don't think so. When starting your business a lot more things are under your control unlike investing in high-risk markets for example.

While some people get very rich with their garage business it's rarely the case. So I am placing it in the medium return category, especially considering the business is started with just 10 thousands dollars.

What businesses you can start with this money? Here are some ideas.

5. Trade antiques

Medium risk / medium return

Trading antiques can actually be pretty risky if you buy super expensive antique that turns out to be fake. But having only $10,000 you are out of this category. To diversify you should generally aim for items that cost under thousand bucks.

A popular strategy to trade antiques is to find them locally at garage sales etc (NOT in antique shops!), and then sell online. The other way often works too - find good deals online, then sell locally to interested customers.

6. Invest in crypto-currencies or in mining them

High risk / high return

Crypto-currencies are less hot than they were an year ago but I wouldn't exclude them as opportunity. I would say they matured and we'll no longer see such huge raises and drops in Bitcoin prices. The opportunity is still there too - lear more on this page.

Except trading them, you can try to mine them. This might be less risky because your only cost is the mining hardware and electricity - and $10k will buy you a good mining machine.

7. Buy money-making website(s)

High risk / high return

Like I wrote several times, this is one of my favorite options. Websites are often undervalued and can easily return 50% - 100% per year, especially if you know how to improve them. And I am not talking only sites that earn from ads - some sites are complete online businesses with huge potential and many sources of income.

8. Mobile app(s)

High risk / high return

Similar to websites, mobile apps are and will remain hot for long time. You can invest in apps on sites like AppBackr and SellanApp. This is riskier however because you rely on someone else's marketing and development skills.

With 10 thousands you can fund the development of an app or two based on your own idea. This requires work and knowledge but all the returns will be for you.

9. Home improvement & energy efficiency

Medium risk / medium return

Some would say this is low risk but I don't think so. Many home improvements don't bring the desired result especially when you expect the raise the value of your property or to see great reduce in your energy bills.

On the other hand, when invested wisely, ten thousands can do a lot for your property. Think about better insulation, improvements in the garden (to grow food), solar panels and so on. The main advantage in doing home improvement with the money is that it immediately improves your quality of life - so even if you don't earn much from it, you'll have something to enjoy.

10. Buy 3D printer & CNC router

Medium risk / medium return

Small scale manufacturing is the future of many products. And with 3D getting more popular and cheaper things will only get better. $10,000 will buy you a great printer, CNC router and other stuff to equip a small factory in your garage. You can produce stuff for sale, for yourself, or just stand a 3D print shop business. Lots of opportunities here as long as you are willing to do some work.


Published at May, 09 '14 , Read 4103 times.



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