What's up, graham, it's guys here, so i recently found out that the average american household has nearly ten thousand dollars saved in their bank account, and that gave me an idea. We should go over the six and a half best ways that you could invest. Ten thousand dollars right now in a way: that's both quick, realistic and, most importantly, profitable, because after all, ten thousand dollars is a sizable amount of money that could make a significant difference long term, if you don't mess this up and it's important to utilize this money Properly, for instance, just getting an extra two percent return on your ten thousand dollars. Could wind up making you an extra eighty one hundred dollars in profit over the next thirty years, and i'm pretty sure if you watch this video to the very end, you'll find at least one way to maximize your money to get that extra two percent return, if Not way way more, so i guess in a way just watching this video could be worth an extra eighty one hundred dollars all for the low cost of just smashing a like button and subscribing for the youtube algorithm.

So that way, it pushes the channel to a brand new audience who can also subscribe and hit the like button to push it out to an even bigger audience and the cycle continues. So thank you guys so much and also big. Thank you to ftx for sponsoring this video, but more on that later. First, let's start with one of the most boring basic, safest and practical approaches that everyone should be doing if they have ten thousand dollars, and that would be starting an emergency fund now for those unaware, as the name would suggest, an emergency fund is simply the cash You have sitting on the sidelines to be used only in the event of an emergency.

Ideally, the size of this fund should be equal to three to six months worth of your expenses and kept easily accessible in cash. Just in the small chance that you fall on hard times having this type of three to six month, emergency fund means that you're not going to have to rely on credit cards to pay your way through an unexpected event. You're not going to have to sell your stocks or other investments during a time where they may have declined in value, and you won't have to take on any high interest rate debt in the event. Something were to happen, so obviously there will be people out there who complain that the money is losing value to inflation.

It's not making you anything back in return and it's just being wasted away. But from my perspective, an emergency fund could actually save you money and act kind of like an insurance policy in the event that poop hits. The fan just consider that it's a lot better to lose seven percent to inflation than lose 15 in the market. If you have to sell your investments during a time where everything is down - and you can't hold on any longer for myself - i've been using li bank for my emergency funds because they pay you a half a percent interest rate and they have an easy to reach.

Customer support team, who always picks up the phone in a minute because i'm impatient, but besides them there's also a ton of great other. High-Yield savings accounts out there. So if you're curious, which ones are my favorite i'll link to them down below in the description, i think i should also include a step one and a half here as well, because, besides an emergency fund, you could also use this as a savings fund for anything That you want to buy in the next one to four years: goals like saving up for a house, car vacation or a business could fit in here and generally, it's a good idea not to invest the money that you'll know you'll need in the next few years, Because there's always a chance that the market goes down, a recession hits, and you won't have enough time to wait for elon musk to buy out your favorite tech companies, so they finally pump to the moon. That's why holding onto cash isn't always a bad thing and for peace of mind, an emergency fund or a savings account is absolutely worth it just to know that whatever happens, you'll be okay, although from there once you've got your emergency fund and your savings account for That tesla roadster you've been eyeing.

We could finally move on to the next option. The second another, somewhat unexciting, but very profitable way to invest. Ten thousand dollars is by paying down high interest rate debt see. The thing is, obviously, if you have any debt, whether that be a credit card, auto loan, personal loan or a mortgage, that debt costs you money.

Of course some debt is good to have like if you have a low interest. Fixed-Rate mortgage - that's tax-deductible, it's probably better, not to pay it off and invest the money elsewhere instead, but if you have high interest rate debt, that's not making you any money, then that debt needs to be paid down as soon as humanly possible. Here's my reasoning on this on average, if you were to invest your money, you would make approximately 6 to 12 every single year before paying tax. On the other hand, if you have high interest rate debt paying down that debt is like getting a guaranteed return at whatever interest rate you're paying down, for example, paying off a 20 interest rate.

Credit card is like getting an immediate guaranteed 20 return on your money. Without any risk whatsoever, the same math applies with pretty much any loan that you might have. Even if you have a personal loan at 8 interest, why invest in the stock market for the possibility of making eight percent before tax, when you could pay down the loan and make a guaranteed return right now? My basic rule of thumb is just this: if you're paying above a five percent interest rate on your debt, it's probably best to pay off that loan as soon as possible, because you're getting a similar return as to what a good investment would make you after taxes, Consider this like a guaranteed return on your money, a really good use of ten thousand dollars and then once you've done that we can move on to the next step. Third: here's where the magic begins start using some of that ten thousand dollars to invest in your retirement accounts when it comes to this i'll, be going over three different options and then afterwards, we'll go over the specific investments that you can make within those accounts, depending On how much risk you want to take, but first i think it's no surprise that overall, my favorite retirement account for some of that 10 000 would be a roth ira.

This is a retirement account that you could invest your money into and then all the profit you make within that account is completely tax free after the age of 59 and a half that means, if you invest a thousand dollars at the age of 20, and then It's worth 21 000 at the age of 65. Well, all of that is completely yours to keep without paying any tax. As of now you're able to contribute 6 000 a year to a roth ira, if you're under the age of 50 and 7 000 a year, if you're over the age of 50 and if you're eligible to do this, i would always do it like right now. Like don't put this off go and do it? Yes, i am talking to you right now, because i regret not doing this the moment i turned 18 and it took me a few years to figure out what i was doing.

You could literally open up an account with a variety of brokerages right now for free, it's going to take you less than 15 minutes, and this alone could easily save you, thousands or even tens of thousands of dollars in the future. If you just do it in this case, a 10 000 investment means that you could max out a roth ira for the entire year and have money left over for the next option, and that would be a 401k. This one is kind of like the opposite of a roth ira, because it's an account that you invest pre-tax money into and then you're taxed on those profits. Once you begin taking them out after the age of 59 and a half not to mention with this you're able to contribute up to nineteen thousand five hundred dollars a year, so, for example, if you invest ten thousand dollars into a 401k you'll be taxed as though You've just made ten thousand dollars less and in a 22 tax bracket.

That means you'll save a pretty quick 2200. That means you now have an extra 2200 that you can invest today to begin working on your behalf, instead of giving it to uncle sam now, unfortunately, like i mentioned the catch here, is that you do have to pay taxes on this money. Once you begin taking it out in retirement, so really from my perspective, it only makes sense in a few scenarios. The first is when your employer offers what's called a 401k match.

This is where they will match your contribution dollar for dollar, up to a certain amount. Essentially, this means that you double your money immediately with zero risk whatsoever. The rule of thumb when it comes to doing this is that you should always do it, no matter what, like seriously, don't even put this off, always contribute to get up to the employer maximum. On the contribution and never a penny less, the second to 401k also makes sense if you're in a high tax bracket now, but you expect to retire later in a lower tax bracket, and then you could profit the difference now.

The variable here is that if you end up making more money in retirement, you could end up paying more taxes later than you would have just paid today, or if tax rates go higher, then you could also end up paying more, but for most people out there. I would probably recommend contributing enough to get the 401k match from your employer and then putting everything else into a roth ira. But after that we have one of the best options of them all, and you could use some of that. Ten thousand dollars towards what's called an hsa which stands for a health savings account.

Now there are some qualifications that you have to follow and you can find that out pretty quick with the google search, but assuming you qualify, you can contribute up to three thousand dollars completely tax-free into this account. This is specifically used to pay for any out-of-pocket medical expenses that you incur and if you don't use it one year, you could roll it over to the next and the next and the next and the next. Many people believe this to be one of the best tax advantaged accounts in the world, because first you don't pay any tax on the money. You contribute to the account.

So that's tax-free and second, you don't pay any tax on the money that you spend on medical expenses. So that's also tax free. It's basically like you're, getting completely tax-free money that you can invest. However, you want that you won't ever have to pay tax on when you spend it on medical expenses, which all of us are going to have at some point or another.

So again, if you qualify, there is no reason why you shouldn't use some of the ten thousand dollars towards this. Although speaking of that, if you're looking to buy, sell track and trade, a multitude of cryptocurrencies and nfts all in one place with these, that are up to 85 percent lower than the top competitors, ftx us is here to help they're one of the largest us regulated Cryptocurrency exchanges, with millions of users and they're, founded by sam binkman, freed one of the wealthiest people in the world under the age of 30, who plans to give away 99 of his money to charity yeah seriously, he drives a used toyota corolla, because it's cheaper. That's the kind of guy who you want running a company anyway, with the ftx app you could buy and sell cryptocurrency with no fixed minimum fees on transactions, no ach fees and no gas fees on the top ethereum and solana collections. You could also set up an automatic recurring deposit to dollar cost average into the markets on a regular basis.

Their crypto debit card is accepted throughout millions of merchants worldwide and now you could get up to a hundred dollars just for signing up using the link in the description with the code, graham plus they've, just recently partnered with steph curry, tom brady coachella and the miami Heat arena and you could earn free crypto on every trader for ten dollars so again, if you're interested feel free to use the link down below in the description to sign up today with the code gram and now with that said, let's get back to the video. Fourth, in terms of which investments you could make within a retirement account, of course, we got index funds bet you didn't see that one coming anyway, an index fund is basically an investment that encompasses the overall market and by paying one low price. You'll get the benefits and diversification of owning a small amount of everything. Historically, an investment in something like a total stock market index or an s.

P 500 index has returned between 8 and 10 annually when you reinvest the dividends and for most people watching. It's probably the best risk versus reward in terms of how much money you could make. The other advantage is that index funds often have very low or even zero management fees, which means you get to keep even more of your money to reinvest to make even more money to make even more money. And it's been shown that index funds outperform 92 to 95 of professional portfolio managers over a 15-year period plus doing this is really really easy.

You don't have to spend hours trying to find an undervalued stock to buy. You don't even have to perfectly time your entry point. All you need to do is click a few buttons buy into a total stock market index on a regular basis, and that's it you're done even for myself. I prefer investing in index funds, and this is what i've been doing since the very beginning, oh and for anyone wondering which index funds to buy into look into what's called the three fund portfolio.

That means there's just three different funds to buy into in your set. It's the total stock market, international stock market and a very small portion and bonds for the safety boom you're done ten thousand dollars well spent. Of course, if index funds are too boring for you and you don't mind, taking on a little bit more risk for a little bit more reward, you could use some of that ten thousand dollars towards investing in individual stocks. There i said it.

This is by far the riskiest from everything that i have discussed, but the payout could be a lot larger. That's because you're placing a significant amount of your money within a few specific companies and your entire investment is dependent on how well those businesses do now. I personally recommend doing this within a roth ira or a 401k to avoid paying taxes on those profits. Unless you plan on holding on for a while to get those sweet, sweet, long-term capital gains tax rates, but that isn't required.

You could just as easily open an account with public, using the link down below in the description with the code. Gram, get a free stock worth all the way up to a thousand dollars and reap some pretty good benefits. For instance, twitter is up 17. This year, exxon is up 30 lockheed martin is up 25.

So if you pick some winning stocks, you could do tremendously better than investing in an index fund. However, just keep in mind that if you choose incorrectly, you could wind up completely devastating your portfolio and that's a risk. You have to take now, of course, as a disclaimer here, the average investor is really really bad with picking stocks and they tend to underperform the overall market. This means that most investors will average less than an eight percent return long term, and a good portion of those investors will end up losing money over a period of days, weeks, months or even years.

So if you want to dabble with this by all means, go for it just know your odds, don't go all in and understand that if you want to be good at this, you really have to put in the time and the research now i don't think i Could mention stocks without taking it to the next level in terms of risk versus reward, and this would be the grand master of them all cryptocurrency. It's no surprise that throughout the last decade, both bitcoin and ethereum have broken records of some of the best performing assets. They've surpassed just about every other investment in existence and there's always the potential that further adoption could drive the price even higher, plus, i'm not naive to the fact that both millennials and gen z are buying into cryptocurrencies more than any other generation. So it makes sense that we include them as an option on the list now in terms of being reasonable with ten thousand dollars and not just throwing it all into the next discord pump and dump it's important to make a smart investment based on science and facts.

And here is what's statistically most likely to make you money first, based on past performance and my own analysis, the chance of you picking a random non-top, 10 cryptocurrency and making money from it is really really slim in reality. In the last year, only five had a return above 10 000 out of 200 different options. So if you're randomly investing, you only have a two and a half percent chance of picking the right one with the others losing about 90 to 100 percent of their value. Now, second, when factoring in the losers, you would have made more money just investing in bitcoin and ethereum, and that's it and third studies show that you don't need a huge allocation to something like bitcoin to see a positive return on your portfolio.

In fact, fidelity found that just a five percent allocation to bitcoin would have boosted the cumulative return of a traditional portfolio by 65 since 2014, even despite the sell-offs along the way. That's why i've taken the stance that i invest less than eight percent of my entire net worth in a 50 50 split between bitcoin and ethereum, i'm prepared for it to go to zero, but i'm also very optimistic to see what's going to happen over the next 10 to 20 years, plus, to give you a head, start, feel free to use my link down below in the description to sign up for ftx us. And when you use the code gram, you could get all the way up to a hundred dollars in cryptocurrency. For free, so you may as well go ahead and do that before the offer expires.

So those are my best options to invest 10 000 in a way that's easy, profitable and realistic. It certainly depends on your risk tolerance. How much work you want to put into this and the time frame for investing, but between those six and a half options you'll, be well on your way to investing that ten thousand dollars to make a lot more money in the future. Just by subscribing and hitting the like button for the youtube algorithm, if you haven't done that already so with that said, you guys thank you so much for watching also make sure to add me on instagram or on my second channel.

The graham stefan show and don't forget, to get your free stock down below in the description when you sign up for public.com using the code gram, because that stock could be worth all the way up to a thousand dollars again. Just go to public.com gram claim your free stock before the offer expires. Let me know which one you get. Thank you so much for watching and until next time,.