How to turn 10k into 100k? This is a question many people ask. Fortunately, this is possible for you with the right strategy and investment.
There are so many ways to grow your wealth, and you just need to find the right formula for your strategy to achieve the profits you are targeting for yourself.
However, you should note that investment options with higher rewards can be risky. You will need to balance risk and rewards, and you will also need to do due diligence before investing.
Never jump into an investment without knowing what you are getting yourself into.
There are different kinds of investments that you can make to help you grow your money and create wealth. However, you need to focus on one strategy and become good at it before adding another one.
Remember that people who become millionaires concentrate on doing one thing and doing it very well.
Whether your investment is a side hustle or a career you choose to become independently wealthy in your life, knowing the basics and understanding the risks could be the difference between success and failure.
12 Top Ways On How To Turn 10K Into 100K
Which is the best investment to help you grow your wealth? Here are some great ways of turning 10k into 100k.
1. Investing In Real Estate
Real estate investment offers steady returns on your investment. Investors earn cash from rent payments and enjoy capital gains when their property appreciates. This means that they can sell their properties at a profit in the future.
On average, homes appreciate by 7.4% per year. But before you invest in real estate, you will need to be sure that the property will bring in cash flow. Ensure that you also do due diligence and account for the repairs and maintenance of the property in your calculations.
10K may not be enough to buy a property. However, crowdfunding sites such as Fundrise and Groundfloor enable investors to pool their money and invest in income-generating real estate projects.
- Fundrise – you can invest in projects for as low as $10. Check our full Fundrise review and invest in the real estate market without high starting capital.
- Groundfloor – its minimum investment starts at $10 per project. Read our full Groundfloor review for more details of the platform.
On average, real estate has an annual return of 10%. Investors are paid dividends quarterly and benefit from the appreciation in the rise of the property.
Remember that these investment options are usually slower ways of growing your investment. Using this method can take years to make 100k from 10k. However, this can help you get good investment habits and diversify your portfolio.
2. Cryptocurrencies
In the last few years, cryptocurrencies have become the craze, which is why this class of assets has become part of many people’s portfolios. Today, we have different investors in the cryptocurrency space, ranging from day traders to holders whose aim is to hold on to the cryptocurrency for long-term investment.
No matter the investment option you choose, there is no denying that there are many opportunities in the cryptocurrency space. Investors who put their money in major coins such as Bitcoin and Ethereum have seen significant returns in the last few years.
One of the best platforms for buying and selling cryptos is Coinbase, and there are also other great exchanges such as Binance, Kraken, and Gemini.
Suppose you are interested in making passive income from cryptos. In that case, you can also check out eToro, enabling you to earn up to 9% APY when you open a crypto interest account.
3. Investing In Index Funds
Index funds are stocks aimed at tracking indexes, such as the S&P 500. When you invest in an index fund, you get a variety of securities at a low cost and easy investment.
You can get exposure to thousands of securities in one fund, therefore lowering your overall risk in broad diversification. You can create your preferred asset allocation by investing in different index funds that track other indexes.
Historically, index funds have performed well, attracting returns of 7% per annum. If you invest $10,000 in an index fund with 7% per annum returns, this will turn into $100,000 in a little over 10 years. By increasing the initial investment, you can get results faster.
Therefore, index funds are a good way of growing your first investment without higher risk. Before investing, you can check the fund’s performance. This way, you can vet the fund managers to determine if they regularly outperform the market or not.
Here are some suggestions that you may try in investing in index funds:
You can get started with M1 Finance. M1 Finance has no broker fees or commissions and can invest from $100. Read our full M1 Finance review to know more about the platform’s services.
4. Peer-To-Peer Lending
Peer-to-Peer lending or P2P is another way you may want to consider giving you higher returns on your money. How do you do it? Loaning your money to different people.
People who tend to borrow using this lending service are those looking to get cash to pay off debts or pay off some bills for themselves. And since you have the capital, you can be an investor looking to earn from lending to these people.
The returns are generally higher than on the stock market or real estate, and I’ve had between 10-14% return on investment on different platforms. However, the risks with P2P lending are also higher, and that’s something to be aware of before investing in these platforms.
Some P2P lending platforms that I have good experiences with are:
5. Start A Blog
Do you love writing anything under the sun? Why don’t you turn that passion into a side hustle and earn money? You just have to find a niche that you are good at developing and nurturing into a bona fide income-generating gig.
AllaSerebrina/Depositphotos.
Top bloggers can make millions per year. But, this needs a lot of patience and dedication to grow your blog, and that’s why it’s a bit slower to turn 10k into 100k by blogging.
But this can be the start of your online business and earn you a lot of money down the line. It may take some time, but time would not matter if you have the skillset and passion for doing it, and time would not matter.
If you want to start your blog now, here’s a step-by-step guide in just 15 minutes.
6. Buy And Flip A Blog
Blog flipping can be very lucrative, and it’s now a full-time career for some people. The process of flipping a blog is usually straightforward, and you need to buy a blog and grow it before flipping it for a profit. On average, blogs sell 30 to 40 times their monthly income, assuming it’s a high-quality site.
Therefore, if you invest $10,000, you can get a blog making between $300 and $400 per month. To flip the blog for $100K, you should increase your monthly blog profit to $3,000-$4,000 a month.
One way to do that is to grow your organic site traffic while optimizing your blog monetization. This may take time, but it can be a very promising way to multiply your investment.
If you want to monetize your blog, Ezoic is an ad provider making 600% more than Google Adsense. I’ve posted my entire experience in Ezoic review, where you’ll see all the pros and cons of the platform and why I choose it.
One marketplace that you can buy a blog to flip is Flippa, and you can also use that platform to sell your blog.
7. Affiliate Marketing
Affiliate marketing is another way to turn your 10k into 100k. Affiliate marketing is earning money when you recommend products on your blog.
You get to have your unique link to promote products on your blog. Your link gets tracked, and you get a commission if someone purchases the product using your link at no extra cost to them.
Suppose you want to learn more about affiliate marketing. In that case, you can purchase Making Sense of Affiliate Marketing by Michelle of Making Sense of Cents and learn the tips and tricks on affiliate marketing. It is the first blogging course I’ve ever bought, and it’s great if you’re an affiliate marketing newbie.
8. Dividend Stocks
Dividend stocks are a great way of taking advantage of compound interest to make more money. They work. When a company makes a profit, it shares it through investor dividends.
As an investor in dividend stocks, you will benefit in two ways: By appreciating the company’s stock price and dividend. On top of being a consistent source of income, most dividend-paying stocks are usually in sectors that can withstand economic downturns due to their minimal volatility.
One of the investors’ critical considerations when identifying stocks with high dividends is the dividend yield. This is calculated by dividing the annual dividend per share by the price per share.
9. Retirement Investment Accounts
Another great way to grow 10k into 100k is through an investment account like 401(k) or Roth IRA. After you have bought and sold stocks from various investments, you will be required to pay taxes on them.
Depending on the period you have held them, this can translate into capital gain taxes. With retirement accounts such as Roth IRA, you can grow your investments without paying taxes.
There are also many tax benefits of a 401(k). The cash invested is usually tax-free, and it also grows tax-free. This is on top of the fact that many employers generally match investment into 401(k) as a bonus.
10. Retail Arbitrage
This is another excellent way to turn $10,000 into $100,000. It involves buying popular products at a discount before reselling them online on marketplaces such as eBay and Amazon.
Retail arbitrage sellers usually sell fast-selling merchandise such as books, apparel, toys, and electronics. You can also get inexpensive items from stores that have a clearance sale, such as Target, Walmart, and Kohl, as these will increase your profit margin when you resell them.
However, you should note that retail arbitrage requires some effort and practice as you will need to find the right retailers and the clearance deals in your area. But when you understand what to look for, you can easily make money.
If you don’t know where to get started, certain items you can flip for profit have proven to be profitable over the years. Examples include electronics, baseball cards, and more.
11. Start An Etsy Store
Etsy is a popular online marketplace for vintage and handmade items. This is also a great way of making $100,000 from $10,000. You can sell many products on Etsy, such as clothing, wedding dresses, digital stickers, candles, jewelry, home decor, and much more.
One of the reasons Etsy is popular is that it already has millions of active buyers, which means that it has considerable income potential. However, note some upfront costs of starting an Etsy shop. Keep in mind that it costs $0.2 to list items, and the transaction fees range from 3% to 5% on top of $0.2 per sale.
12. Invest in an IPO
An Initial Public Offering (IPO) is usually a hazardous investment, resulting in a fast growth or a fast decline. By buying the right company at the right price, you can quickly increase your money.
For instance, the IPO price of Shopify was $25. After five years, the Shopify stock price had risen to $825, which is still growing. Therefore, if you have invested $10,000 in the Shopify IPO, this would have increased to $330,000 in five years, and you would have made your first $100,000 in 4 years only.
Please note that investing in IPOs or Special Purpose Acquisition Companies can be very risky. The rewards are extremely high, but the risks are also high. Keep that in mind when you’re doing your own research.
Conclusion – How To Turn 10K Into 100K
Now that you have gone through the different ways of turning your 10K to 100K, what do you think fits your bill? One thing we can all agree, boosting your investment from 10k to 100k can be done.
You need to know what suits your current financial profile and strategy.
Before going to battle, a good leader plans and strategizes the best way to win. This is the same with investments. You already have the necessary tools – the capital and the ideas – that will help you win your battle for financial independence.
You just need to map out how to get from point A to point B. You have already made the step in the right direction. Now it’s time to finish this and see it through as you build your 10K into 100K.
Founder of Spark Nomad, Radical FIRE, Journalist
Expertise: Personal finance and travel content
Education: Bachelor of Economics at Radboud University, Master in Finance at Radboud University, Minor in Economics at Chapman University.
Over 200 articles, essays, and short stories published across the web.
Experience: Marjolein Dilven is a journalist and founder of Radical FIRE, a personal finance platform, and Spark Nomad, a travel platform. Marjolein has a finance and economics background with a master’s in Finance. She has quit her job to travel the world, documenting her travels on Spark Nomad to help people plan their travels. Marjolein Dilven has written for publications like MSN, Associated Press, CNBC, Town News syndicate, and more.
