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You have $20,000 in your bank account and do not know how to invest your money, we are going to take you through this article to discover different ways to invest your $20,000.

When it comes to the “how,” you can generally invest through traditional financial advisors and investment firms, online brokerages, and robo-advisors. As for the “what,” you’ll have access to various investment choices, including retirement savings accounts, education savings plans, trust accounts, custodial accounts, and more.

While it can be tempting to take the safe route and plant your $20,000 in one spot, experts recommend diversifying your portfolio by spreading money across multiple investments.

In a report published by the American business insider, the writer Ricky Houston said that it may seem reassuring to you to take the safe path and invest $20,000 in one place, but experts recommend diversifying your investment areas.


Investing in stocks is one of the most common forms of investing, companies issue their shares in stock exchanges when they want to expand the scope of business operations, and this means that when you invest in stocks, you buy a small part of the ownership of that company.


ETFs are investment funds that pool investors’ money to invest in stocks, bonds, and other securities, ETFs and stocks are available on stock exchanges, and they are an area for profit or loss, however, investing in ETFs is often less risky than trading stocks.


Bonds are an investment in debt, and they allow you, as an investor, to lend money to governments or companies that need to raise capital to expand their projects. Bonds usually have a maturity date, so once the term expires, you will generally get back the amount you invested with interest.

Mutual Funds

Similar to ETFs, mutual funds are investment funds that contain multiple securities and are traded in the stock markets. The difference is that mutual funds have two managers, unlike ETFs, and each fund is supervised by a manager who ensures its proper management.


These contracts give you the option to buy or sell an investment at a certain price in a specified period of time but do not require you to do so, and most brokerages charge between $0.50 and $0.65 for options contracts.

Real Estate

Real estate investing may be another good option in which you can invest $20,000, and there are several ways to invest in real estate, but you can generally do this through 3 ways: Buy and flip real estate properties on your own, invest in real estate investment funds such as real estate investment trusts (REITs), or invest through real estate crowdfunding investment platforms.


Cryptocurrencies are virtual assets that are used by individuals and companies as a means of payment. These virtual currencies are highly encrypted in a tight manner, and these currencies cannot be duplicated. You can usually invest in cryptocurrencies through exchanges or investment applications.

Precious metals

Many brokerages give you the option to invest in gold, silver, platinum, and other precious metals, and if you don’t invest directly in these metals, you can invest in mutual funds or ETFs in steel companies that produce precious metals.

You should only invest $20,000 of your savings if you don’t need the money at the moment, but before making this decision it is important to make sure that you have a suitable emergency savings fund so that any potential investment losses do not lead to the loss of all your money.

Investing is a great way to grow wealth over time, but it’s a risky area. Before you begin, consider answering this question: What kind of investor are you?

Writer: Ben Lahrichi / content writer.