22 Ways to Invest $25,000

Life is full of choices, after all, and so is personal finance, so it stands to reason there might be a number of possible avenues for your dollars. But which is best for your own personal circumstances?

In this post, Passive Income MD lays out 22 options. See which one resonates with you. One question I get asked quite a bit is, “What would you do if you had $___ to invest?” That number varies widely, but $25,000 is a number that is mentioned quite often, so I decided to go with that for this post.

22 Ways to Invest $25,000 Now

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Okay, I know this isn’t truly an investment, however, it is in a way a guaranteed return – you’re saving yourself from having to pay future interest on that debt. For example, if you have credit card debt sitting there at an interest rate of 15-19%, there aren’t too many investments you can make to safely match that ROI (return on investment).

1. Pay Down Debt

If you have a significant amount of student loan debt, consider refinancing if that’s an option, then weigh whether it’s better to pay down that amount or invest. Currently, debt is relatively cheap, so make sure you understand your goals and your risk tolerance, and figure out what makes the most sense when it comes to handling debt.So each month, you’re cash flow positive in the amount of $2,325 or $27,900 per year!

While rates on FDIC-insured savings accounts are still down relative to historical averages, in recent months they have ticked up into the mid-3% range. The benefit is that it is the safest place to put your money and it’s backed by the FDIC up to $250,000.

2. High Yield Savings Account or CD

However, considering the rate of inflation averages 3-4%, and this year has exceeded 7-8%, stashing away money in only a savings account long-term is similar to continually filling a bucket of water with a tiny leak in it. Over time, the purchasing power of that money is slowly diminishing so better to have some funds elsewhere as well.

In a nutshell, people are looking to borrow money, and investors get together online and loan money to these borrowers at a predetermined rate of interest. Essentially you act as the bank or credit card company. Monthly interest payments are deposited in your bank account.

3. Peer to Peer (P2P) Lending

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A Passive Investing Strategy to Accelerate Financial Independence

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