If you have $ 20,000, it may be difficult to know which investment area is appropriate to increase your money, so you can use traditional financial advisors, investment companies, financial applications, and for the investment options available there are a number of them, including retirement savings, credit accounts, deposits, and more. .

In a report published by the American business insider, writer Ricky Houston said that it may seem reassuring for you to go the safe way 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 investment. Companies issue their shares on the 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 collect investor money to invest in stocks, bonds and other securities, and ETFs and stocks are available on exchanges, and it is an area for profit or loss, however, investing in ETFs remains 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 increase capital to expand their projects, and bonds usually have a maturity date, so once the period expires, you will generally recover the value of the amount you invested with interest.

Investing in stocks is the most common form of investing (Getty Images)

Mutual funds

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

Options contracts

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

Real estate

Real estate investment may be another good option in which you can invest $ 20 thousand, and there are several ways to invest in real estate, but you can generally do this through 3 methods, which are buying real estate and making changes to it yourself, investing in real estate investment funds, or investing through investment platforms. Real estate crowdfunding.


Cryptocurrencies are virtual assets that individuals and companies use as a method of payment, and these virtual currencies are encrypted in a controlled way, and these cryptocurrencies cannot be repeated, and you can usually invest in cryptocurrencies through exchanges or investment applications.

Precious metals

Many brokerage firms give you the option to invest in gold, silver, platinum and other precious metals, and if you do not invest directly in these metals, you can invest in mutual funds or ETFs within the companies that produce the precious metals.

You can invest in mutual funds or ETFs built into companies that produce precious metals (Getty Images)

Retirement account

You can invest in retirement accounts that are sponsored by employers.

Brokerage firms, banks, and other investment platforms allow you to open individual retirement accounts, and like most accounts sponsored by employers, you can open an individual retirement account before or after the tax is imposed.

But the main difference between the individual retirement account and the accounts sponsored by employers is that you do not have to be an employee to be able to open an account, and the individual retirement account guarantees you less spending, and you can contribute an amount of up to $ 6 thousand annually, as well as an additional thousand dollars If you are 50 years or older.

Annual pensions

Insurance companies provide this type of contract. When you invest in the annual pension, you guarantee that the insurance company will return you the amount you invested, along with the interest, in periodic payments in subsequent years.

Should you invest 20 thousand dollars?

The writer emphasized that you should only invest $ 20 thousand of your savings if you do not need the money at the moment, but it is important before making this decision, to verify 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 is a risky area.

Before you begin, consider answering this question: What type of investor are you?