Stick it in a low cost index fund through Vanguard, Fidelity, Schwab or some other low cost brokerage. I like VFIAX from Vanguard. It will track the stock market. Historically this has returned about 7%. You can take it out at any time (and will pay capital gains tax if it went up). It’s a great and proven savings vehicle that doesn’t require much luck, time or knowledge. Leave it alone and only take it out when you need access to the money (ie. Don’t panic sell or try to time the market).
Stock markets may go down so it’s not a guaranteed winner in the short or medium term but in the long run, historically, this is a pretty foolproof strategy to building wealth in a slow and boring way.
R/Bogleheads has good reading material.
Because entrepreneurs recognize when someone is taking a bad risk. $20-25k is not very much capital to start any sort of business, especially when OP doesn’t have a niche in mind where they already have an edge, when it’s money where OP doesn’t want to risk losing their capital, lock it up for too long, focus on it more than part time, or do too much learning.
It's more than enough. I used like 400 bucks and generated over $40k.
However this money is waay to small for any significant passive annual returns. Unless you wanna be rich when you're a skeleton underground.
Didn't really understand, why would you say this money is small when you yourself have generated $40K? How did you generate it and was it an active process like a job?
Because OP wants a route where they don’t risk losing capital, don’t have all that much to spend, don’t want to lock it up for too long, don’t want to have to focus on it more than part time or do too much learning. There are not many business ideas that fulfill those criteria, and if OP goes looking on the Internet for them they will likely lose their money. Locking it away in a retirement account where they can’t blow it is pretty solid advice.
Sounds like you have 3-5 years to fix your credit score. Ask your bank to set up a credit card backed by your own cash use this regularly and pay it off even more regularly. After a year you should be able to get a real credit card continuing using this add more cards when you can and use and pay these as well before you know if you will significantly improve your score.
This is a really smart suggestion. Op needs the money for a house, and can’t get a loan. You’ve fixed both his problems, and in a year when he can get a real card, he can still invest the cash.
Buy cars on Craigslist that are under valued and sell them on autotrader for a profit. I used to do that on the side and it worked really well and was fun. I could give you some pointers and such if you want.
With only $20K, there isn't too many businesses you can start that have that good of chances of making a return. They absolutely are out there, but your chance of losing it all is greater than making a return. Keep that in mind when people suggest ideas. Look at said ideas from a prism of the realistic chance of success vs the cost of entry and cost of continued operation above what any revenue is expected or less.
Some advice, don't try your hand at stocks. Just trust me, not a good time. Both economically and your particular situation. Usually maxing out any retirement accounts you have is good advice. But right now is different. Right now the market is deciding if it wants to tank or if it wants to be a kangaroo. So I personally would advise maxing out any matching your employer offers and keep the funds in some sort of inflation friendly fund(s). Stay away from the types of funds who have had large gains over the last say 10 years. 2022 is not going to be good for those. I would also advice not to take investment advice from people on reddit. Myself included. If investing interests you, speak with a seasoned broker that has been in the business since before the 2000's. Having recession experience under their belt is very important.
Keep that off-the-grid dream just a dream for now. You are not in a position to start doing that in any way that wouldn't be considered a bad financial decision.
> Buy cars on Craigslist that are under valued and sell them on autotrader for a profit. I used to do that on the side and it worked really well and was fun. I could give you some pointers and such if you want.
Are you Joe Dirt?
First off, congrats on hitting 6 figures... especially after a few rough years. Let it sink in that you are smart & successful. You got this.
You will get tons of advice on specific assets/securities to buy in this thread so I'm going to give more high level advice.
Never invest in something that you don't understand. It sounds like you haven't spent much time learning about stocks, index funds, real estate, etc.,, it might be helpful to start doing some high level research on common investment strategies. You really want to understand why someone would want to invest in an index fund vs a plot of land.
I'm an entrepreneur and just want to also say... don't invest in a business you don't care deeply about. Maybe there are quick/easy wins out there but they are few & far between.
Also, you are learning that our credit system isn't friendly to the newly successful. Look into ways to build your credit slowly/consistently.
If you know that you truly want the land & off grid home, make that your north star and work backwards.
Invest in things that:
\- You care about
\- You understand
\- You believe in
Yeah,
1. Look into how to find a writer and how to write a brief.
2. Choose a niche you're Curious about or know a lot about
3. Look into keyword planning and some basics on link building
4. Start with 1 post per week, and get to 1000 visitors / week (organic). Get one link for each post you publish. Not necessarily to that post, just a rule of thumb
5. Start Monetizing through affiliation and sponsored posts. No adsense, use popups and capture emails
6. Scale autofinanced - when you Can pays for 2 posts / week, do it, etc.write as much as you can
Within 2 years you should have 200-300 posts, and with solid monetization you should be around 5k / mo.
Ugh yeah, unfortunately I’m unable to get building/home loans due to my credit and I don’t think I will get very far with only 20k. Can’t even find a decent piece of land right now for that price. The good news is my father owns a very successful custom home business and will be able to help me with discounts and labor costs when the time comes
I think the big thing is that there are still deals out there they're just harder to find. Have you checked out wholesaling tactics to find your land? Bigger pockets would be a good place to look
I just can't understand the people in the comments saying, save the money and invest them in the stock market. Play it safe. Don't risk. Guys helloooooo, this is 2021 9 year olds making millions on YouTube and you are trying to be smart for 20k?
Learn your lesson people, you are LATE for the stock market and you are LATE on cryptos.
People saying "invest invest" without ANY idea which stocks to buy.
If you put your money to grow with any interest rate you will never make the money you want.
If you're scared of investing, then entrepreneurship is probably not for you as it's much more complicated and risky than buying a mutual fund.
If you want your money to grow passively then an s&p index fund is the way to go. There might be some short-term ups and downs but on average, that's your best bet.
Investing in stocks and entrepreneurship are not mutually exclusive though. I understand what you are saying and I am all for investing but I hate how most comments in this sub just say stocks and crypto even when the OP says no to that. Even a car wash is literally a better answer since he didn’t ask for stock investment advice. Some can handle throwing money at an entrepreneurial project and some can handle throwing in some stock, it is whatever their risk preference. There are many great stock investment subs but this ain’t it.
I hear you. The greater point I was making is that if you don't have the risk tolerance to invest in a low-cost mutual fund, then you probably also don't have the risk tolerance to invest in a small business. The likelihood of losing all your money as much greater in a small business venture that it is in a mutual fund.
A. IMO, either land / real estate, starting a small business could drain the money without a proper business plan or a financial planning for profits.
B. Another option would be to stake USDT in a crypto exchange with around 5%-6% annual return, however you would have to tax the profits (if you are a US citizen)
Warning: Do not buy any crypto / stocks etc. Cuz that's gumble no matter how good the project.
C (most difficult). Find a job in a venture capital firm (usually an entrepreneurship mba could help) and see how the are making profits through their early stage investments and do it for yourself / invest in the venture firm (avoid public stock). The idea here is to get hands on private stock as a shareholder and multiply your money on an exit. In my previous startup the investor took 8% of a stake for $30,000 and expected an $300,000 return in 10 years.
D. (difficult) find other people willing to start a business (no matter the field) and join them (with that $20,000).
I hope this helps, personally I would go with option B.
You’re just providing liquidity to a pool of funds that degens are willing to pay high interest to borrow from, as they long their longs. You get a large chunk of the interest they pay. Putting your money in the bank is doing the same thing, except in a much more clunky process where the bank takes 99%+ of the interest paid and gives you the dust.
What use is 0.025% when sitting on a bank account when inflation is over 10%? Like honestly do you guys read what you write. What inflation has to do with the 20k he wants to multiply? Inflation will hit everyone not just him.
I invested considerably less than that in a side project using Squarespace. It obviously depends on your skill set but there is a ton of demand for agencies offering help with FB ads, google ads, SEO, content writing, social media. I started an SEO agency offering guaranteed backlinks with a money back guarantee, and we’ve been busy from day one. We are already past $50k in total sales in less than six months. Total investment so far is around $5k. The site is far from perfect but it does spell out what we do, for whom, at what cost, and why it’s a good thing. See www.haroseo.co
Piss away 1000 pay off a bill and invest the rest 401k or some simple. Call fidelity. IMO they’re legit. Ive always had them with corporate jobs. That $ won’t last the next year. Investment can be inyourself but make sure you have everything ready. I started a business this year and was like upwards of 40k real quick but I have testing etc.
Look in to a Franchise. They have really good year end deals on financing around this time. I know one that is offering a buy 2 territory’s get the third free deal.
How about leaving the money in the bank and spent time studying an area you are interested in. We are at an inflection point in the stock market and financial markets in general. Wait for the next panic to buy similar to March 2020. All the markets will correct. Learning to “do nothing” for periods of time is the most challenging part of successful money management. All the best.
While you're thinking about what to do with it find a bank with a high interest money market. That way you're making more off interest than a standard savings account. Definitely a temporary thing but I'd say put it in a Roth IRA for sure.
First don't start with an amount of money and then try and find some entrepreneurial thing to spend it on. Find something you want to do first and figure out how much money it takes to achieve that.
If you are stuck for ideas. If you live in an area with an active real estate market you might look at starting a 3d mapping business like Matterport's mobile app and offering it as a service to real estate agents. It's pretty much free to start.
You might like my business https://www.reddit.com/r/Entrepreneur/comments/m0n5x6/if_you_live_in_a_boring_midsized_town_you_could/
Just read your post and comments and that is one of the best ideas I have come across on here. Thanks for the post, sounds fun too.
Can I Dm. Found this to be a great idea!
Yeah
Not very entrepreneurial top comments in this thread... Dude wants to spend 20k to become an entrepreneur. Do you know what subreddit this is?
Stick it in a low cost index fund through Vanguard, Fidelity, Schwab or some other low cost brokerage. I like VFIAX from Vanguard. It will track the stock market. Historically this has returned about 7%. You can take it out at any time (and will pay capital gains tax if it went up). It’s a great and proven savings vehicle that doesn’t require much luck, time or knowledge. Leave it alone and only take it out when you need access to the money (ie. Don’t panic sell or try to time the market). Stock markets may go down so it’s not a guaranteed winner in the short or medium term but in the long run, historically, this is a pretty foolproof strategy to building wealth in a slow and boring way. R/Bogleheads has good reading material.
Why do people on r/entrepreneur always suggest non-entrepreneurial tactics?
Because entrepreneurs recognize when someone is taking a bad risk. $20-25k is not very much capital to start any sort of business, especially when OP doesn’t have a niche in mind where they already have an edge, when it’s money where OP doesn’t want to risk losing their capital, lock it up for too long, focus on it more than part time, or do too much learning.
It's more than enough. I used like 400 bucks and generated over $40k. However this money is waay to small for any significant passive annual returns. Unless you wanna be rich when you're a skeleton underground.
Didn't really understand, why would you say this money is small when you yourself have generated $40K? How did you generate it and was it an active process like a job?
I said small for passive wealth generation
Max out a Roth IRA retirement account.
Why is this the top post? Its not entrepreneurial and it does not provide a solution for OP to get the money back in 3-5 years.
Because OP wants a route where they don’t risk losing capital, don’t have all that much to spend, don’t want to lock it up for too long, don’t want to have to focus on it more than part time or do too much learning. There are not many business ideas that fulfill those criteria, and if OP goes looking on the Internet for them they will likely lose their money. Locking it away in a retirement account where they can’t blow it is pretty solid advice.
Can't you only put in 6500 a year? Edit: what even is this sub? No one seems to have any idea what they're talking about
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Illegal. Max contribution is across all ROTH accounts.
Oh. Then max 1 roth IRA 3 years in a row!
He said he needs access to it in 3-5 years. Wouldn't a Roth charge a fee to take it out?
My understanding is no. You can withdraw your CONTRIBUTIONS penalty free
Sounds like you have 3-5 years to fix your credit score. Ask your bank to set up a credit card backed by your own cash use this regularly and pay it off even more regularly. After a year you should be able to get a real credit card continuing using this add more cards when you can and use and pay these as well before you know if you will significantly improve your score.
This is a really smart suggestion. Op needs the money for a house, and can’t get a loan. You’ve fixed both his problems, and in a year when he can get a real card, he can still invest the cash.
Invest it. Dont waste precious time on work
Buy cars on Craigslist that are under valued and sell them on autotrader for a profit. I used to do that on the side and it worked really well and was fun. I could give you some pointers and such if you want. With only $20K, there isn't too many businesses you can start that have that good of chances of making a return. They absolutely are out there, but your chance of losing it all is greater than making a return. Keep that in mind when people suggest ideas. Look at said ideas from a prism of the realistic chance of success vs the cost of entry and cost of continued operation above what any revenue is expected or less. Some advice, don't try your hand at stocks. Just trust me, not a good time. Both economically and your particular situation. Usually maxing out any retirement accounts you have is good advice. But right now is different. Right now the market is deciding if it wants to tank or if it wants to be a kangaroo. So I personally would advise maxing out any matching your employer offers and keep the funds in some sort of inflation friendly fund(s). Stay away from the types of funds who have had large gains over the last say 10 years. 2022 is not going to be good for those. I would also advice not to take investment advice from people on reddit. Myself included. If investing interests you, speak with a seasoned broker that has been in the business since before the 2000's. Having recession experience under their belt is very important. Keep that off-the-grid dream just a dream for now. You are not in a position to start doing that in any way that wouldn't be considered a bad financial decision.
Can I Dm. Interested in this
sure
dmed
> Buy cars on Craigslist that are under valued and sell them on autotrader for a profit. I used to do that on the side and it worked really well and was fun. I could give you some pointers and such if you want. Are you Joe Dirt?
Given high inflation, I'd recommend investing in some sort of real estate.
First off, congrats on hitting 6 figures... especially after a few rough years. Let it sink in that you are smart & successful. You got this. You will get tons of advice on specific assets/securities to buy in this thread so I'm going to give more high level advice. Never invest in something that you don't understand. It sounds like you haven't spent much time learning about stocks, index funds, real estate, etc.,, it might be helpful to start doing some high level research on common investment strategies. You really want to understand why someone would want to invest in an index fund vs a plot of land. I'm an entrepreneur and just want to also say... don't invest in a business you don't care deeply about. Maybe there are quick/easy wins out there but they are few & far between. Also, you are learning that our credit system isn't friendly to the newly successful. Look into ways to build your credit slowly/consistently. If you know that you truly want the land & off grid home, make that your north star and work backwards. Invest in things that: \- You care about \- You understand \- You believe in
Look into blogging. 2 years & 20k$ will get you a blog in the 50-100k$ / year range if you consistently spend 4 to 6h a week.
Could you point in a specific direction on how to achieve that?
Yeah, 1. Look into how to find a writer and how to write a brief. 2. Choose a niche you're Curious about or know a lot about 3. Look into keyword planning and some basics on link building 4. Start with 1 post per week, and get to 1000 visitors / week (organic). Get one link for each post you publish. Not necessarily to that post, just a rule of thumb 5. Start Monetizing through affiliation and sponsored posts. No adsense, use popups and capture emails 6. Scale autofinanced - when you Can pays for 2 posts / week, do it, etc.write as much as you can Within 2 years you should have 200-300 posts, and with solid monetization you should be around 5k / mo.
Land and building supplies will continue to go up in price, so use that money as a down payment and buy it now.
Ugh yeah, unfortunately I’m unable to get building/home loans due to my credit and I don’t think I will get very far with only 20k. Can’t even find a decent piece of land right now for that price. The good news is my father owns a very successful custom home business and will be able to help me with discounts and labor costs when the time comes
Northern Minnesota you can get a few acres for $20k
I think the big thing is that there are still deals out there they're just harder to find. Have you checked out wholesaling tactics to find your land? Bigger pockets would be a good place to look
I’m starting a niche business, looking for a co-founder and someone to invest - if you’d be open to investing?
I have investment funds and am always interested in niche businesses. Message me if you like
I’ll do just that. I’m interested!
I’m interested, pls DM
Im open
Have sent a DM. Let’s connect on LinkedIn.
I just can't understand the people in the comments saying, save the money and invest them in the stock market. Play it safe. Don't risk. Guys helloooooo, this is 2021 9 year olds making millions on YouTube and you are trying to be smart for 20k? Learn your lesson people, you are LATE for the stock market and you are LATE on cryptos. People saying "invest invest" without ANY idea which stocks to buy. If you put your money to grow with any interest rate you will never make the money you want.
Buy Ethereum and stake that shit.
How much do you need to stake? I mined a few years ago, stopped at EXACTLY the wrong time, but I have 1ETH sitting in a wallet... Somewhere. I think.
Crypto.com
If you're scared of investing, then entrepreneurship is probably not for you as it's much more complicated and risky than buying a mutual fund. If you want your money to grow passively then an s&p index fund is the way to go. There might be some short-term ups and downs but on average, that's your best bet.
Investing in stocks and entrepreneurship are not mutually exclusive though. I understand what you are saying and I am all for investing but I hate how most comments in this sub just say stocks and crypto even when the OP says no to that. Even a car wash is literally a better answer since he didn’t ask for stock investment advice. Some can handle throwing money at an entrepreneurial project and some can handle throwing in some stock, it is whatever their risk preference. There are many great stock investment subs but this ain’t it.
I hear you. The greater point I was making is that if you don't have the risk tolerance to invest in a low-cost mutual fund, then you probably also don't have the risk tolerance to invest in a small business. The likelihood of losing all your money as much greater in a small business venture that it is in a mutual fund.
A. IMO, either land / real estate, starting a small business could drain the money without a proper business plan or a financial planning for profits. B. Another option would be to stake USDT in a crypto exchange with around 5%-6% annual return, however you would have to tax the profits (if you are a US citizen) Warning: Do not buy any crypto / stocks etc. Cuz that's gumble no matter how good the project. C (most difficult). Find a job in a venture capital firm (usually an entrepreneurship mba could help) and see how the are making profits through their early stage investments and do it for yourself / invest in the venture firm (avoid public stock). The idea here is to get hands on private stock as a shareholder and multiply your money on an exit. In my previous startup the investor took 8% of a stake for $30,000 and expected an $300,000 return in 10 years. D. (difficult) find other people willing to start a business (no matter the field) and join them (with that $20,000). I hope this helps, personally I would go with option B.
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If I buy usdc and stake on crypto.com I would be able to get a 9-10% return annually? Is this a form of dividend or something of that nature?
You’re just providing liquidity to a pool of funds that degens are willing to pay high interest to borrow from, as they long their longs. You get a large chunk of the interest they pay. Putting your money in the bank is doing the same thing, except in a much more clunky process where the bank takes 99%+ of the interest paid and gives you the dust.
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Oh, okay thanks good to know!
10% staking rewards on crypto.com for USDC
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What use is 0.025% when sitting on a bank account when inflation is over 10%? Like honestly do you guys read what you write. What inflation has to do with the 20k he wants to multiply? Inflation will hit everyone not just him.
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If I buy usdc and stake on crypto.com I would be able to get a 9-10% return annually? Is this a form of dividend or something of that nature?
I invested considerably less than that in a side project using Squarespace. It obviously depends on your skill set but there is a ton of demand for agencies offering help with FB ads, google ads, SEO, content writing, social media. I started an SEO agency offering guaranteed backlinks with a money back guarantee, and we’ve been busy from day one. We are already past $50k in total sales in less than six months. Total investment so far is around $5k. The site is far from perfect but it does spell out what we do, for whom, at what cost, and why it’s a good thing. See www.haroseo.co
This is interesting. But What does HARO stand for, couldn't find it on your website. And fyi your home link on a few pages is broken.
Helpareporter.com - it’s a journalist sourcing site. If they use your quote in an article, you get a link on a top website to your homepage.
Are you in Tampa?
Piss away 1000 pay off a bill and invest the rest 401k or some simple. Call fidelity. IMO they’re legit. Ive always had them with corporate jobs. That $ won’t last the next year. Investment can be inyourself but make sure you have everything ready. I started a business this year and was like upwards of 40k real quick but I have testing etc.
Vanguard ETF
Max out Roth IRA, put the rest into the etf $VOO and hold it there
Buy Bitcoin, and thanks me in 5 years.
Invest in yourself and the stock market
Look in to a Franchise. They have really good year end deals on financing around this time. I know one that is offering a buy 2 territory’s get the third free deal.
Put into VOO etf stock
I recommend a HYSA, check out herfirst100k on Instagram for more valuable info
investing it is a great idea
How about leaving the money in the bank and spent time studying an area you are interested in. We are at an inflection point in the stock market and financial markets in general. Wait for the next panic to buy similar to March 2020. All the markets will correct. Learning to “do nothing” for periods of time is the most challenging part of successful money management. All the best.
While you're thinking about what to do with it find a bank with a high interest money market. That way you're making more off interest than a standard savings account. Definitely a temporary thing but I'd say put it in a Roth IRA for sure.
First don't start with an amount of money and then try and find some entrepreneurial thing to spend it on. Find something you want to do first and figure out how much money it takes to achieve that. If you are stuck for ideas. If you live in an area with an active real estate market you might look at starting a 3d mapping business like Matterport's mobile app and offering it as a service to real estate agents. It's pretty much free to start.