The 10 Best Ways To Invest US$10,000 in 2024 For Maximum Returns

Summary

This video offers 10 diverse investment strategies for those with $10,000, ranging from building an emergency fund to unconventional methods like YouTube automation and peer-to-peer lending. The host emphasizes the importance of risk-taking for success and provides insights on traditional investments like index funds and real estate, while also discussing the potential of Airbnb arbitrage and dividend-paying stocks. Each strategy comes with its risks and rewards, highlighting the need for careful planning and market adaptability.

Takeaways

• 💼 Investing $10,000 wisely can provide passive income and reduce reliance on a 9-5 job.
• 💡 The speaker emphasizes the importance of not being a financial advisor and that the information is for educational purposes only.
• 🚨 Risk is inherent in all investment strategies, but it's also a path to success as no successful person has avoided taking risks.
• 🏦 Building an emergency fund is the first recommended investment, which should cover 3-6 months of living expenses for financial security.
• 🏠 Airbnb Arbitrage is a strategy of renting a property long-term and subletting it short-term for profit, requiring careful planning and management.
• 📈 Index funds offer a way to diversify investments with lower fees and have historically provided a 7% average annual return.
• 📹 YouTube automation involves creating content upfront and then earning passive income from views over time.
• 💰 Investing in retirement accounts like Roth IRA or 401k is crucial for long-term financial stability.
• 🔒 High-yield savings accounts, CDs, and bonds are safer investment options for those with low risk tolerance.
• 💳 Paying down high-interest debt is an investment in itself, as it provides an immediate return by saving on interest payments.
• 🏢 Stocks, especially those that pay dividends, can offer a potentially higher return on investment than index funds but come with greater risk.
• 🏘️ Real estate investing can start with a $10,000 down payment on a rental property or through Real Estate Investment Trusts (REITs).
• 🤝 Peer-to-peer lending platforms allow lending to individuals or businesses directly, offering an average annual return of about 5%.

Q & A

What is the primary advice given in the video for someone with $10,000 to invest?

The video suggests not to waste the money on material items like sneakers or gadgets, but instead to invest it in ways that can generate income or grow over time.

Why is building an emergency fund considered a necessary investment according to the video?

An emergency fund is crucial as it provides a financial cushion for unexpected expenses, preventing reliance on high-interest credit card debt or selling investments at a loss.

What is the recommended amount for an emergency fund based on the video?

The video recommends having 3 to 6 months' worth of living expenses in an emergency fund, which could range from $30,000 to $60,000 depending on monthly costs.

How does the video suggest one should store their emergency fund?

The video recommends using a high-yield savings account instead of a regular bank account to ensure the money continues to work and earn interest, even while being readily accessible.

What is Airbnb Arbitrage and how does it work as an investment strategy?

Airbnb Arbitrage involves renting a property long-term and subletting it short-term on platforms like Airbnb for a higher nightly rate, aiming to profit from the difference in rental costs.

What are some of the risks associated with Airbnb Arbitrage mentioned in the video?

Risks include the property not being rented for various reasons, which can affect occupancy rates, seasonal demand, and lead to unexpected expenses.

Why are index funds recommended as an investment option in the video?

Index funds are recommended because they offer diversification, lower fees, and have historically provided returns upwards of 7% per annum, leveraging the power of compound interest.

What is YouTube automation and how can it be used to generate semi-passive income?

YouTube automation involves creating videos on trending topics or educational content and outsourcing video production to freelancers. Once monetized, the channel can generate income from ad revenue.

What is the significance of investing in retirement accounts as highlighted in the video?

Investing in retirement accounts ensures financial security in old age, reducing the risk of having to continue working indefinitely due to lack of funds.

How does the video suggest using the $10,000 for high-interest savings accounts, CDs, and bonds?

The video suggests considering high-interest savings accounts, CDs, and bonds as relatively safe investment options, especially for those with a low risk tolerance, although the returns may not be as high as other investment strategies.

What is the potential long-term growth of investing in bonds that pay 9% as mentioned in the video?

The video illustrates that investing $10,000 in bonds at 9% interest, with reinvestment of returns, could grow to approximately $233,000 after 10 years and $132,000 after 30 years.

Why is paying down high-interest debt considered an investment in the video?

Paying down high-interest debt is considered an investment because it provides an immediate guaranteed return by eliminating the high interest payments that would otherwise be made over time.

What are the potential returns on investing in individual stocks according to the video?

The video suggests that investing in individual stocks, particularly those that pay dividends, can offer a higher potential return on investment compared to other methods, with an example of $10,000 growing to $199,000 after 10 years with a 7% average annual return.

How does the video describe real estate investing as a potential use for the $10,000?

The video describes real estate investing as a way to use the $10,000 as a down payment on a property for short-term rental, or through other means like REITs or real estate crowdfunding, to generate income or appreciate in value over time.

What is peer-to-peer lending and how does it work as an investment?

Peer-to-peer lending is an online platform that allows individuals to lend money directly to other individuals or small businesses, cutting out traditional financial institutions. It offers an average annual return of about 5%, growing $10,000 to approximately $16,600 after 10 years.

Outlines

00:00

💰 Maximizing Your $10,000 Investment

This paragraph introduces the video's purpose: to share the top 10 ways to invest $10,000 based on the speaker's experiences. It emphasizes the importance of not wasting money on frivolous items and instead putting it to work. The speaker clarifies they are not a financial advisor and that all investments carry risks, but also potential rewards. The first investment suggestion is to build or contribute to an emergency fund, which acts as a safety net for unexpected expenses, typically 3 to 6 months of living expenses. The paragraph advises against keeping the emergency fund in a regular bank account due to low interest rates, instead recommending high-yield savings accounts for better returns.

05:03

🏠 Airbnb Arbitrage as an Investment Strategy

The second method of investing $10,000 discussed is Airbnb Arbitrage. This involves renting a property long-term and subletting it short-term on platforms like Airbnb for a higher nightly rate. The process includes finding a furnished apartment in a desirable location, negotiating a long-term lease for stability and potential discounts, and setting a competitive nightly rate. The speaker provides a step-by-step guide on how to execute this strategy, including the financial projections for the first two years, highlighting the potential profitability and the importance of careful planning and market adaptability.

10:06

📈 Diversifying with Index Funds

The speaker introduces investing in index funds as the third method to invest $10,000. Index funds are a type of mutual fund or ETF that aims to match the performance of a specific index, offering diversification and lower fees. The S&P 500 Index Fund is mentioned as an example, which tracks the 500 largest US companies and has historically delivered over 7% annual returns. The potential for compound interest is highlighted, showing how an investment could double in 10 years with an average 7% return. The importance of researching and considering index funds not only from one's home country is also emphasized.

15:08

🎥 YouTube Automation for Semi-Passive Income

The fourth investment method presented is YouTube automation, which involves creating videos that can generate income over time with minimal ongoing effort. The process includes hiring freelance video producers to create content, focusing on educational and trending topics, and posting consistently to qualify for YouTube's monetization program. The potential earnings from ad revenue are outlined, with examples of how many views could translate into daily earnings. The paragraph also addresses the competitive nature of YouTube and the importance of high-quality content and differentiation.

20:10

👴 Securing Your Future with Retirement Accounts

The importance of investing in retirement accounts is the focus of the fifth paragraph. The speaker emphasizes the need for self-reliance in retirement and mentions various retirement investment options available in the US, such as the Roth IRA, 401k, and HSA. The benefits of tax-free contributions and potential employer matching contributions are highlighted. The speaker advises using Google Gemini to find retirement investment options and stresses the significance of starting early to secure financial stability in old age.

25:10

🏦 High-Interest Savings, CDs, and Bonds

This paragraph discusses investing in high-interest savings accounts, CDs (Certificates of Deposit), and bonds as relatively safe investment options for those with a low risk tolerance. High-interest savings accounts offer better rates than regular savings, while CDs provide higher interest rates for committing to keep money in the account for a set period. Bonds are described as loans to governments or companies in exchange for interest payments over time. The speaker shares personal experience with bonds, highlighting their potential for significant returns over the long term.

💳 Paying Off High-Interest Debt as an Investment

Paying down high-interest debt is presented as an investment strategy in this paragraph. The speaker explains that by using $10,000 to pay off a credit card balance with a high interest rate, one can effectively earn a return equivalent to the interest rate saved. This not only eliminates the debt but also the associated high interest payments, freeing up cash flow for other investments and improving credit scores.

📊 Investing in Individual Stocks for Dividends

The speaker discusses investing in individual stocks, particularly those that pay dividends, as the eighth method to invest $10,000. Dividend-paying stocks are highlighted for providing 'free money' to investors. The potential for higher returns compared to index funds is noted, but so is the increased risk. The importance of researching and choosing well-established companies with a good track record is emphasized, with examples provided.

🏘 Real Estate Investing with Limited Capital

Real estate investing is the ninth method presented, with suggestions on how to use $10,000 as a down payment for a short-term rental property or investing in a REIT (Real Estate Investment Trust) for diversified real estate holdings. The speaker also mentions rental properties and real estate crowdfunding as alternative ways to invest in real estate, providing examples of platforms and the potential returns from such investments.

🤝 Peer-to-Peer Lending for Direct Investments

The final method discussed is peer-to-peer lending, where individuals lend money directly to others or small businesses through online platforms, bypassing traditional financial institutions. Examples of platforms like Lending Club, Prosper, and Funding Circle are given, along with the potential returns from this type of investment. The speaker reminds viewers to consider their risk tolerance and to seek professional advice when making investment decisions.

🚀 Embracing Limitless Potential with $10,000

In the concluding paragraph, the speaker encourages viewers to take action on the investment strategies shared, emphasizing the importance of breaking limitations and adopting a mindset of future success. A call to action for viewers to like the video and subscribe to the channel is included, along with a motivational message to walk with a growth mindset.

Keywords

💡Investment

Investment refers to the allocation of money with the expectation of generating income or profit. In the context of the video, it is the core concept, as the speaker discusses various ways to invest $10,000 to grow wealth and make money work for the individual. For example, the script mentions investing in an emergency fund, which is a form of investment in personal financial security.

💡Emergency Fund

An emergency fund is a reserve of cash set aside to cover unexpected expenses, such as medical bills or car repairs. The script emphasizes the importance of this as the first investment, suggesting 3 to 6 months' worth of living expenses be set aside to avoid reliance on high-interest credit card debt during emergencies.

💡High Yield Savings Account

A high yield savings account is a type of bank account that offers a higher interest rate than a regular savings account. The video script recommends this as a better option for storing an emergency fund, allowing the money to earn more interest than it would in a standard account, as illustrated by the speaker's suggestion to consult a financial advisor about such accounts.

💡Airbnb Arbitrage

Airbnb Arbitrage is a strategy where one rents a property long-term and then lists it for short-term rentals on Airbnb at a higher nightly rate. The script explains this as a method to generate passive income, with the example given of renting a one-bedroom apartment and subletting it to earn a profit from the difference in rental rates.

💡Index Funds

Index funds are a type of investment vehicle that aim to replicate the performance of a specific market index, such as the S&P 500. The video script promotes these funds as a way to diversify investment and reduce risk, with the potential for a modest but consistent return, making them suitable for long-term growth.

💡YouTube Automation

YouTube automation involves creating videos that can be monetized on the YouTube platform, generating passive income over time. The script describes this as a semi-passive income method where initial effort is required to produce content, but once uploaded, videos can continue to earn ad revenue, highlighting the potential for significant returns with consistent uploads.

💡Retirement Accounts

Retirement accounts are savings plans designed to provide income after retirement. The video script underscores the importance of investing in such accounts to ensure financial security in old age, mentioning specific types like the Roth IRA and 401k, and emphasizing the benefits of employer matching contributions.

💡Bonds

Bonds are debt securities through which an investor loans money to an entity in exchange for periodic interest payments. The script positions bonds as a long-term investment that can provide a steady income stream, with the potential for significant growth over time through reinvestment of interest, as exemplified by the speaker's personal experience with bonds.

💡Paying Down High-Interest Debt

Paying down high-interest debt is the act of eliminating loans with high interest rates, such as credit card debt. The video script considers this an investment in the sense that it provides an immediate return by saving on future interest payments, thus improving one's financial position and freeing up funds for other investments.

💡Stocks

Stocks represent shares in the ownership of a company and can provide returns through capital gains and dividends. The script differentiates between dividend-paying stocks, which provide regular income, and growth stocks, which may appreciate in value over time. Investing in individual stocks is presented as a potentially higher-risk, higher-reward strategy compared to index funds.

💡Real Estate Investing

Real estate investing involves purchasing property or an interest in property with the intention of generating income or capital gains. The video script presents various forms of real estate investment, such as rental properties, REITs (Real Estate Investment Trusts), and real estate crowdfunding, each offering different levels of involvement and potential returns.

💡Peer-to-Peer Lending

Peer-to-peer lending is a method of debt financing that allows individuals to borrow and lend money without the use of traditional financial institutions. The script describes this as a way to earn interest by lending money directly to others through online platforms, offering an alternative investment option with the potential for solid returns.

Highlights

The importance of not wasting $10,000 on material items and instead investing it to make money work for you.

Declaration of not being a financial advisor and the information shared is for informational purposes only.

The necessity of taking risks for success, with the reminder that every investment option carries risk.

The first investment suggestion is building an emergency fund to cover 3 to 6 months of living expenses.

Access to emergency funds should be immediate, not through selling assets or stocks.

Recommendation to use high yield savings accounts for emergency funds instead of regular banks.

Introduction of Airbnb Arbitrage as an investment method involving renting and subletting properties for profit.

Details on executing Airbnb Arbitrage, including finding properties and setting competitive nightly rates.

Potential profits from Airbnb Arbitrage and the strategy of scaling up by adding units every few months.

Risks associated with Airbnb Arbitrage, such as unoccupied properties and market adaptability.

Investing in index funds as a way to diversify investments and match the performance of specific indexes.

The potential long-term growth of index funds through compound interest and the importance of diversification.

Investing in YouTube automation as a semi-passive income source by creating and monetizing content.

The process of creating a faceless YouTube channel, leveraging trending topics, and outsourcing video production.

The potential for significant returns from a well-executed YouTube channel and the competitive nature of the platform.

The importance of investing in retirement accounts to ensure financial security in old age.

Different types of retirement accounts and their benefits, such as Roth IRA, 401k, and HSA.

Investing in high interest savings accounts, CDs, and bonds as conservative investment options.

The benefits and potential growth of investing in bonds, especially those with higher interest rates.

Paying down high interest debt as an investment strategy to eliminate debt and save on interest payments.

Investing in individual stocks, particularly those that pay dividends, as a potentially rewarding strategy.

The potential long-term growth of investing in the stock market and the importance of reinvesting returns.

Investing in real estate as a means to generate income through rental properties or real estate investment trusts (REITs).

Exploring real estate crowdfunding as an alternative to traditional real estate investment.

Peer-to-peer lending as a way to lend money directly to individuals or businesses through online platforms.

The potential returns from peer-to-peer lending and the importance of choosing reputable platforms.

Transcripts

[Music]

do you have

$10,000 and wondering how to make the

most of it and how to get your money to

work as hard as you do at that 9 to5 job

the key is not to waste it on another

pair of sneakers or some fancy Gadget

there are actual ways that you can get

your money to work for you so that you

don't have to keep working so hard for

your money so in this video rock stars

I'm going to share based on my own

experiences the 10 absolute best ways to

invest

$110,000 at this particular point in

time

search now before we get started let me

declare that I am not a financial

advisor and what I'm sharing with you is

for informational purposes only also

there's a risk related to every single

thing I'm about to share but what I have

to remind you is that no risk no reward

I can't think of any successful person

in the world who didn't take risks to

get there so it's required for success

and for you to experience your greatness

now these investment options S range

from the traditional to the

unconventional so I believe there's

something here for everyone but I'll let

you decide now the first one is an

investment that every single person on

this Earth needs to make and it is to

build an emergency fund or to invest in

your emergency fund now an emergency

fund is money that you set aside for

unexpected expenses and usually what's

recommended is anywhere from 3 to 6

months worth of living expenses meaning

if it cost you $110,000 to pay your

bills and to take care of all your needs

and your wants in a month 3 months would

mean you need $30,000 set aside 6 months

would mean you need $660,000 one of the

key criteria is that you must have

access to it it can't be that you're

selling an asset or requesting for

stocks to be sold for you to get access

to that money absolutely not now what an

emergency fund does it prevents you from

relying on a credit card to manage your

expenses when an emergency happens

because credit card debts are very high

interest so you don't want to be in that

situation it also prevents you from

selling your investment at a loss if you

have them to deal with an emergency or

taking out other High interest debt to

manage that emergency because of that an

emergency fund is a necessary investment

now most people just save their

emergency fund in a regular bank and in

that bank you're going to get a lot less

than 1% in interest per year it's not

worth it rockstars you need to talk to

your financial advisor about high yield

savings account so that this money can

continue to work for you even though

it's sitting there and you'll have

access to it readily if there's an

emergency you can just use Google Gemini

free and I'm going to put the link in

the description and type in high yield

savings account in and then you put your

country I did it for Jamaica and I got

several options most of you watching

reside in the United States so you can

explore wealth front and Ali Bank as

options to consider but you can also

search Google Gemini for other options

as well now the second method that you

can use to invest

$110,000 and this is something I have

done and continue to do and also coach

people who are doing it successfully is

Airbnb Arbitrage Airbnb Arbitrage

involves renting a property for the long

term and then subletting that property

on a shortterm basis on platforms like a

BNB and of course you're going to do it

for a higher nightly rate now here is

how you execute this you need to First

identify a furnished and in this example

I'm going to say a one-bedroom apartment

because we want to start small it could

also be a studio apartment in a gated

community preferable but with no HOA

restrictions against short-term rentals

now you're going to aim to rent this one

bedroom or this studio for

$11,200 that's the sweet spot for this

particular example if you have $10,000

to invest now you're also going to

ensure that the property is attractive

to potential Airbnb guests so the

location and the amenities matter now

you're going to negotiate a longer term

lease preferably 1 to 2 years and this

will give you stability and also

potential rent discounts you're then

going to set a competitive yet

profitable nightly rate now based on

what I've seen you can earn anywhere

from $150 to maybe $200 so we're going

to go with an average of

$175 adjust the numbers accordingly and

ensure that it works based on your math

not my math now you're going to start

with one unit out of your

$10,000 and then what what you're going

to do is as the profit starts coming in

from that unit plus you're still going

to have over $8,000 left you're going to

add one unit every 3 months so by the

time the year is done you should have

four one-bedroom or studio apartments

now we're going to assume that for 22

out of the average 30 nights in a month

you have a booking and rock stars that's

not impossible but it's going to be

contingent on your your particular

apartment or studio and where it's

located then we are going to assume that

the expenses per month are about $300

and it could be more you again do the

math based on your circumstances now

after the first year after accumulating

four properties in a staggered manner

your annual income will be about

$115,000 less your expenses

$36,000 it means your profit is

$779,000 in year two with your four

apartments one bedroom or Studio your

income is

$369,000 with expenses of

$144,000 and your profit is

$225,000 so basically you would not only

make back your $10,000 in year one but

you would make a profit of over $60

$50,000 now again there are risks that I

must call out because your property may

not get rented for different reasons

that's why these are projections actual

profit can vary based on things like

occupancy rate seasonal demand and

unexpected expenses but Airbnb Arbitrage

it can and has proven in my case and in

the case of several persons that I coach

to be a lucrative way to generate

passive income but it does require

careful planning diligent management and

adaptability to the market that you're

operating in now let's move to the third

way to invest $10,000 at this particular

time and it's in an index fund now index

funds are a type of mutual funds or ETF

they actually aim to match the

performance of a specific index and if

you have heard of the SNP 500 that's

actually a specific index what index

funds do however is they offer an

opportunity for you to diversify your

investment so when you invest in an

index fund that Index Fund may be for

stocks bonds and investment in a company

you're spreading your risks and they

also have much lower fees when compared

to other Investments out there now the

options that you can consider if you are

in the US which most of you are

is the S&P 500 Index Fund and this

tracks the 500 largest US companies and

has been proven over time to deliver

results upwards of 7% in interest per

anom but again just go to Google Gemini

and type in index funds that I can

invest in in my area total stop market

index fund is another one that you can

consider and this includes all the

publicly TR ated companies in the United

States and remember as well that you can

invest in index funds that are not in

your home country I do that with several

of my different index funds you don't

need to be a citizen of the country to

do this from Jamaica here I use Brandon

who I interviewed in this particular

video on the channel and he helps me to

invest not just locally but also

overseas Now with an average annual

return of about 7%

$10,000 in 10 years would basically

double because it's leveraging compound

interest so it's not as great as Airbnb

but you know what if you're looking for

an option to diversify your portfolio

you definitely need to have index funds

now the fourth method that you can

invest your

$10,000 in is very nonconventional but

pretty popular and it is into YouTube

automation just picture turning

$10,000 into semi- passive income and I

say semi- passive because you first have

to create the videos but then you can

keep earning on those videos for many

years to come now here is how it works

and this is of course a faceless YouTube

channel and you can ride the wave of

trending topics or viral videos make

sure however it's educational because

that will pay you more now what you do

is you reach out to a freelance video

producer on platforms like Fiverr or

upwork now for one of my channels that's

faceless this is all I do and I pay

about $2 us per video this includes them

scripting the video creating the video

and even creating the thumbnail sending

it back to me and all I'm doing is post

there are some Freelancers out there

that we'll even post for you but I don't

recommend that from a security

perspective and for three videos per

week as an example it's going to cost

you about

$240 per month so your

$10,000 will go a long way with YouTube

automation now you're going to keep

posting videos until you qualify for the

YouTube monetization program and then

you're going to apply and when approved

you're going to start making money from

YouTube posting ads on your videos now

let's say conservatively you're only

making $5 per 1,000 views for your

channel if you are able to get 20,000

views in a day that's $100 and let's say

you target that in year one because

we're building up let's say after 3

years you're averaging a 100,000 views

in a day it means that you're earning

$500 per day 500times 30 days in a month

that's 15,000 it means that your

$10,000 you make it back in year one and

by year two you're making three times

that per month with your

$330,000 so it's one of those

Investments that when done right it

returns a significant reward wward and

at $20 per video your $10,000 will give

you enough money to post Way Beyond a

year and have content been uploaded on

your channel three times per week now

you have to consider however that growth

on YouTube is not linear so you can

expect that they're going to be slower

months and sometimes it's going to pick

up and you're going to earn more YouTube

is also highly competitive especially

when it comes to to face less content so

you have to be aware of that as well and

try to differentiate your offering make

sure however that your videos that these

Freelancers are creating they're well

produced even if it's trending topic

videos rockstars if you're willing to

put in the work a faceless channel can

be a lucrative investment just visit

alo.com which is 100% faceless and that

channel has millions of subscribers and

I'm sure is raking in a lot more than

your $10,000 that you're going to invest

initially on a monthly basis possibly

even on a daily basis my tip here is

YouTube is not a getrich quick scheme

treat it like a business not like a

lottery ticket now the fifth way to

invest your $10,000 is to invest in

retirement accounts you cannot rely on

your kids to take care of you when you

get older and I do not want to see you

waving at me if I happen to visit a

Walmart because you have to be there and

not because you're choosing to be there

because you're looking for interaction

in your old age I'm sure you see those

much older people waving at you at

Walmart it's likely because they didn't

plan for their retirement and they need

to continue working until they die you

do not want to be that person rock stars

retirement Investments they'll actually

ensure that you are okay long after you

stop working and again you can use

Google Gemini to ask for retirement

Investments where you live or you can

reach out to a financial advisor to get

some guidance in the US again which most

of you are watching from you have the

Roth IRA which is where you contribute

after tax money and you get all the

profits tax-free the limit for

contribution however is $6,000 per year

assuming you're under 50 or $7,000 if

you're over 50 there's also your 401k

where you invest pre-tax money and in

2024 as an example the contribution

limit is $119,500

and listen if your employer is opting to

match your contribution go ahead and

contribute the maximum amount because

you will not regret it when you walk

past someone with in at you in Walmart

and there's also the HSA which is health

savings account and here you can

contribute up to

$3,500 per year it's actually a great

tax advantage account offering tax-free

contributions like I said earlier with

withdrawals for medical expenses I would

say if you can do two out of the three

go ahead and again go to Google Gemini

and ask about retirement accounts or

retirement plans where you live sixth on

the list I'm bucketing everything High

interest savings account CDs and bonds

now a highin savings account is a bank

account that pays a higher rate of

interest when compared to a regular

savings account it's relatively safe and

you can access your money at any point

in time I still don't think those are

aggressive ways to invest your money if

you want to get it to work for you but

if you have a very low low risk

tolerance that may be an option you can

consider there are CDs or certificates

of deposits and this is a savings

account where you commit to leaving your

money in the bank for a set period of

time in exchange for a higher interest

rate CDs these days are paying monkey

money so I don't do it but again if you

have a lowrisk appetite you can consider

investing your $110,000 in a CD Now

bonds is next on our list

and I have personally been investing in

bonds since I was in my early 20s

actually that's the reason why I could

retire from a 9 to5 job at age 42

because when you put money in a bond as

an example every quarter or every 6

months or every year a certain amount of

money is going to come to you which is

the interest or the coupon payment

that's coming from that Bond and you

just need to put enough money in there

to make sure that money coming out can

sustain you and maintain you starting at

$10,000 is good but to be able to live

comfortably and enjoy Financial

Independence you're going to need to

ramp that up over time the key however

is to start and bonds are loans that you

give government or companies in exchange

for interest payments over time so for

example if a company says they want to

expand and they don't want to use the

capital on hand or they don't want to go

and borrow a formal loan from A bank

they can come to the public and they can

raise this money where you can put in

your 10,000 somebody else can do 5,000

somebody else can do 50,000 and then in

exchange for use of your money they pay

you at a higher interest rate now

personally I love bonds that pay 9% and

in Jamaica here south power is one such

bond this is the parent company for JPS

there are bonds like this overseas as

well but the greater the risk the

greater the reward now let's say your

$10,000 is invested at 9% which is the

sweet spot for me your $10,000 after 10

years grows assuming again you are

reinvesting your returns

$233,000 and after 30 years assuming

again you get the interest you put it

back in and you reinvest it in a bond

that's paying 9% you'll have

$132,000 so this $110,000 it does grow

but again if you want to be financially

free and live off the proceeds of your

bonds you need to invest more in doing

so seven on our list is to pay down high

interest debt and I know right now

you're thinking but Odetta that's not an

investment it is because anything that

reaps a return or delivers an Roy that's

tangible can be considered an investment

paying off high interest debt is getting

an immediate guaranteed return let me

give you an example imagine you have a

credit card with a $10,000 balance on it

with an interest rate of 18% which by

the way this interest rate can be as

much as 34% in a lot of especially

developing territories let's go back 8%

$110,000 however for this example if you

only make the minimum payments it's

going to take you years to pay off off

your $10,000 on your credit card and

this could end up with you paying

thousands of dollars in interest over

time by using your $10,000 and paying

off that credit card balance one you

eliminate this debt and two you also

eliminate the high interest rate that

comes with this debt effectively earning

an 18% return on your money because no

longer will you have to find that 18%

over time to pay back this not only

frees up cash flow for other Investments

but like I said earlier it improves your

credit score now number eight on the

list are stocks and these are individual

stocks now personally I only invest in

stocks that pay a dividends meaning I

put the money there and just for

investing in that particular company

every 6 months or every year as an

example they're just going to send a

certain amount of money to me which I

call free money so stocks like WinCo

here in Jamaica and apple they pay a

dividends but you can take chances and

invest in Amazon and other stocks they

don't necessarily pay a dividends but

they do well over time now investing in

individual stocks can be riskier than

putting your money on something like an

index fund that includes stocks so make

sure you consider that risk however the

potential for you to get a good Roi or

return on your investment is more

rewarding than most again Ask Google

Gemini for the best platform to buy

stocks in your country and make sure

you're investing in a wellestablished

company with a good track record now if

you invest in the stock market and your

average annual rate of return is 7%

after 10 years your $10,000 will be

worth about $199,000

after 20 years

$38,000 after 30 years

$76,000 and after 40 years

$149,000 now 10th on our list is real

estate investing and with your $10,000

you can consider investing it as a down

payment to a property that you want to

use for short-term rental so it's going

to be Revenue generating not a property

you're going to live in because then

it's going to become an expense but you

can also invest in other types of real

estate investment as an example a Reit

which is a real estate investment trust

this is where you invest in a

diversified portfolio of real estate

holdings without needing to buy actual

property you can look at rental

properties which is what I shared

earlier where you can use your money to

pay a deposit and then rent that

property to generate a monthly income

but keep in mind that you need a good

credit score to qualify for that but you

can also consider real estate

crowdfunding which is where you

participate in real estate projects

through platforms like fundrise where

again they're saying we want to build

this shopping mall and instead of going

to a bank and borrowing a formal loan

they come to the public and say put in

your little Tri pens or two pens and you

put in your 10,000 somebody else put in

a th000 somebody else put 5,000 and you

get paid interest on an annual or

quarterly basis based on your $10,000

investment in real estate crowdfunding

Now with an average annual return of

about 8% $10,000 could grow to

$21,500 after 10 years so not as

lucrative as the others but definitely

worth it and the last way that you can

invest your $110,000 is is with

peer-to-peer lending and peer-to-peer

lending involves lending money directly

to individuals or small businesses

through online platforms cutting out

traditional financial institutions some

of the organizations that you can use

for peer-to-peer lending include one

that I'm very familiar with which is

Lending Club a platform for personal

loans you can also use Prosper another

peer-to-peer lending platform or funding

Circle which focuses on small business

loans again you can ask Google Gemini

for peer-to-peer lending options where

you live now with an average annual

return of about 5% your $10,000 could

grow to about

$166,000 after 10 years rock stars

that's it again these methods all depend

on your risk tolerance they're all risky

but you have to determine what's best

for you and again seek the guidance of a

financial advisor if you found this

video helpful I would really appreciate

you liking it and if you're not yet a

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walk good I don't want to be one of the

nameless I'mma wake up with the mindset

that one day I'm going to make it and I

don't think I'll be fine if I don't

break my limitations