5 Ways to Invest $15,000
You got a bonus from work, you received an inheritance, you have some extra cash in the bank… or maybe you won a cash prize. Congratulations! Are you going to buy a frontline Carnival costume? That phone you always wanted? Maybe make a down payment on a car? We’re not saying you shouldn’t treat yourself. But you should also consider investing. This is an opportunity to build wealth and create a more secure financial future.
Here are 5 ways to invest $15,000:
Pay Off Debt
Quick – how much interest do you pay on your credit card? In many cases, the interest rate is well into double digits. Paying off debt may seem like a boring way to spend $15,000, but it guarantees savings. You’re not just getting rid of debt.
The money that you would have spent on interest payments can now be used in more productive ways. You’re also improving your credit score, making it easier for you to get a loan or another credit card in the future.
Invest in the Stock Market
We know what you’re going to say, you don’t know anything about the stock market. You’ve seen the movies where men in suits look at numbers streaming down a computer screen and decide whether to buy or sell – and that life’s not for you! Thankfully, you can choose to invest in different types of stock, depending on your appetite for risk. Of course, low-risk investments will earn lower returns than their high-risk counterparts, but you’re also less likely to lose money in the process.
Invest in a Fixed Deposit
Maybe you’re not convinced by #2 and want an even safer way to invest. Why not consider a fixed deposit? A fixed deposit guarantees a fixed rate of interest, which is higher than a savings account, with investors agreeing not to access the funds for a fixed period of time. Fixed deposits also give you flexibility. Saving for a long-term goal? Then choose a long-term fixed deposit. Maybe you’re saving to go back to university in three years’ time? Then choose a short-term option.
Invest in an Annuity
An annuity can provide a lifetime income stream after you retire. However, benefits don’t begin in your sixties. Any contributions to an approved annuity are tax deductible, up to $60,000**. So, you can save on your taxes now and save for the future. Additionally, some employers may match a portion of your retirement contribution. Think about it, you can save $1,000 a month for your retirement… and you only have to pay $500. That’s a pretty sweet deal!
** As per current legislation at the time of this article
Invest in Yourself
No, we don’t mean go out and buy that killer pair of shoes. Instead, invest in expanding your skills and knowledge. Especially in today’s fast-paced, tech-driven world, the more up-to-date and diverse your skills are, the more employable you’ll be. Why not take short courses or an online seminar? That new certification can beef up your CV and pave the way for higher earnings or even a promotion.
Final Thoughts
Even if you don’t have $15,000 to invest, you can follow our advice with a smaller sum. And if you do receive a windfall, don’t blow it all at once. Invest, diversify your income stream, and make a downpayment on your future. And, if you want more guidance on how to build wealth, you can always talk to an agent; they’ll offer personalised guidance to help you thrive.
