If you have $30k but aren't sure what to do with it, don't worry – there are plenty of options for you to explore.
Depending on your risk tolerance and goals, you can invest in a variety of assets, including stocks, real estate, small businesses, and more.
In this post, I'll explore how to get rich with $30k, investing tips to help you build lifelong wealth, and much more. Let's get started!
What Does it Mean to Get Rich?
Before you start investing your money, you need to know what being rich means to you.
This can vary from person to person.
For example, some people might think being rich means becoming a millionaire while others might think being rich means having all of the time in the world to do the things you want to do.
You must decide what being rich means to you before you can start investing your money.
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How to Get Rich with $30k
Below are some of the best ways to get rich from $30,000. Remember to consult a financial advisor before making any investments and only invest what you can afford to lose.
Invest in Real Estate
Investing in real estate is one of the easiest ways people of all income levels can get rich.
Real estate investing offers a number of advantages, such as the potential for high returns, passive income, and asset appreciation.
There are many different ways to invest in real estate that I'll explore below.
Crowdfunded Real Estate
With crowdfunded real estate, you can invest in a property without having to come up with the entire purchase price yourself.
Instead, you can pool your money with other investors to buy a property.
This is a great way to get started in real estate investing with very little money.
It's possible to invest in real estate with as little as $10 thanks to platforms like Fundrise.
As a bonus, they're giving new investors $10 completely free – who could say no to that?
The returns on Fundrise have averaged 8-12% since inception, which is pretty solid.
Invest in Real Estate Debt
Another option is to loan your money to real estate investors rather than buying a property yourself.
This is known as lending on real estate debt.
Loans on real estate debt typically have a much higher interest rate than what you could get from a bank.
This is because the borrower is taking on more risk by not putting any money down on the property.
The returns on real estate debt can be very high, but the downside is that you could lose your entire investment if the borrower defaults on the loan.
You can use a platform like Groundfloor to invest in real estate debt with as little as $10!
Commercial Real Estate
Commercial real estate is another tremendous method to get rich with $30,000.
Commercial real estate includes office buildings, retail storefronts, warehouses, and more.
Investing in commercial real estate can be a great way to earn passive income and build long-term wealth and it's easier than you think to get started.
You can use a platform like EquityMultiple to get started with $5,000.
The returns on commercial real estate have averaged over 10% annually, making it one of the more lucrative ways to start investing your money.
Real Estate Investment Trusts
Real estate investment trusts, or REITs, are another easy way for any real estate investor to build wealth.
REITs are companies that own or finance income-producing real estate properties.
You can buy shares of a REIT, which trade on major exchanges just like stocks, and receive dividends from the income generated by the underlying properties.
REITs offer a great way to invest in real estate without having to worry about the hassles of being a landlord.
You can use an app like Acorns to get started!
Purchasing a rental property is another solid real estate investment to reach your financial goals.
This is perhaps the most profitable form of real estate investing.
The reason is that there are several different ways your rental property can make money.
First, you have the potential for monthly rental income.
Second, you have the possibility of earning money when you sell the property down the road (assuming it appreciates in value).
Third, you also get to take advantage of depreciation – a tax deduction that allows you to write off a portion of your property's value each year against the income you make.
Finally, as your property value increase, you can also increase the cost of rent making your monthly profit even larger over time.
All of these factors make rental properties an excellent way to get rich with $30,000.
While you won't get rich over night by investing in a rental property – it's a great long term investment that is relatively low risk.
Invest in the Stock Market
The stock market is another common option for people looking to get rich from $30,000.
The stock market has the potential to generate a higher return than other investments, but it also comes with slightly more risk.
One way to mitigate some of that risk is to spread your money across a number of different stocks by investing in index funds.
Index funds are a type of mutual fund that tracks a particular market index, such as the S&P 500.
This means that when you invest in an index fund, you are essentially investing in all 500 of the largest companies in the US.
This diversification helps to reduce the overall risk of your investment.
Another option is to invest in mutual funds.
Mutual funds are a type of investment that pools money from many different investors to purchase a basket of stocks or other securities.
It's very similar to index funds and exchange traded funds except they are actively managed and tend to have higher fees.
Invest in Small Businesses
Starting your own business can be very time consuming and costly. And not everyone is cut out to become an entrepreneur.
That's where platforms like Mainvest come in.
With Mainvest you can invest in small businesses across the country with as little as $100.
The returns on these investments can be very high, sometimes up to 20% or more.
But like any investment, there is risk involved.
If you want to reach financial freedom, investing in small businesses through Mainvest is a great way to get there.
As a bonus you'll get $10 free when you open an account with the link below!
Start an Online Business
If you have the time and energy, starting your own business is a great way to get rich with $30,000.
There are many different online businesses you can start with very little money.
One option is to start a blog and monetize it with affiliate marketing or advertisements.
Another option is to start an ecommerce store.
You can also start a service-based business and offer your services online.
There are endless possibilities when it comes to starting an online business but my favorite is blogging. Let me explain.
I started my blog over 3 years ago with less than $100 and it now makes over $15,000 a month.
Here's what I like most about this form of online business – you have more control of your investments.
Where traditional investments will increase based on the companies performance, you can control the performance of your blog – allowing you to make much more money.
Invest in Cryptocurrency
Cryptocurrency is probably the most speculative investment on the list, but it can also be the most profitable.
Depending on your financial situation, it could be wise to invest a small percentage of your money into cryptocurrency and other speculative assets.
But be aware, losing money with cryptocurrency isn't just possible, but in some cases likely.
Store Money in a High Yield Savings Account
While I wouldn't recommend putting all of your money into a savings account, it can be a good idea to have some money stored away in case of an emergency.
Savings accounts offer a risk free way to store your cash and earn a small amount of interest on your money.
I recommend using CIT Bank because they offer one of the highest interest rates on savings accounts, around 7 times more than the national average.
The best part is that you can open an account with as little as $100. Create your account below to get started!
Start a Side Hustle
The average salary in the United States is around $54,000, which can make it difficult to get rich with that income.
One way to combat this issue is by starting a side hustle.
There are many side hustles you can start with no money that can be great options for the average person to increase their income.
For example, delivering food with Doordash can be a simple way to increase your earned income.
Another option might be to start flipping. This is a simple side hustle that can be started with very little money and can earn you a great return on your investment.
All you need is a bit of elbow grease and you can start making money with a side hustle.
No matter what side hustle you decide to start, be sure to do your research find a gig that works for you.
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Use Retirement Accounts
Retirement accounts are another great way to get rich with $30,000.
The reason retirement accounts are so powerful is because they come with tax breaks.
This means you can grow your money much faster in a retirement account than you could in a regular brokerage account.
There are two main types of retirement accounts – 401(k)s and IRAs.
401(k)s are offered by employers and they often come with employer matching.
IRAs are Individual Retirement Accounts and you can open one even if you don't have an employer-sponsored retirement plan.
Both 401(k)s and IRAs have contribution limits so you won't be able to invest your entire $30,000 in one account.
But if you have $15,000 to invest, you could put $10,000 in a 401(k) and $5,000 in an IRA.
The sooner you start investing in a retirement account, the better off you'll be.
Take Advantage of Free Money
While you won't get a million dollars of free cash, there are many free money hacks you can use to get hundreds of dollars in effortless money.
For example, opening a new checking account with Aspiration Bank can get you $200 in free cash.
With this extra money you can invest it to make more money in the future.
Another simple way to get free cash is by taking advantage of a company match on your 401(k).
Many employers will match a certain percentage of your contribution, essentially giving you free money to reach your retirement goals.
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How Can I Get Rich with $30k?
The best way to get rich with $30,000 is to invest your money in multiple assets like the stock market, real estate, and small businesses.
Related Reading: How to Invest $60k
How to Invest $30,000
The best way to invest $30k is by keeping your portfolio diversified through different asset classes. This will protect you from volatility and market fluctuations.
Tips to Get Rich
If you have credit card debt, student loans, or other high interest debts – refinancing them could help you save money and get rich quicker.
By refinancing your debts to a lower interest rate, you'll be able to save money on interest and pay off your debts quicker.
Balance Risk and Reward
Many successful investors have done a great job of maximizing their investment income while maintaining lower risk.
Many short term investments are high risk and offer high rewards.
Long term investments are often more stable and offer lower returns.
The key is to find a balance between risk and reward that works for you.
For example, penny stocks and individual stocks tend to be very volatile but can offer returns of 100% or more in a short period of time.
However, investing in these stocks is much riskier than investing in blue chip stocks.
The earlier you start investing, the easier it will be to get rich.
Many investors start investing in their 20s or 30s and it takes them years to reach their financial goals.
If you start investing in your 40s or 50s, it will take even longer.
Automate Your Investments
One of the best ways to grow your money is to automate your investments.
This way you'll never miss an opportunity to invest your money and grow your wealth.
For example, you can use a robo advisor like Acorns to automatically invest your money in a diversified portfolio of stocks and bonds.
Focus on Your Income
Getting rich isn't just about investing – it's also about increasing your income through any means possible.
This is because the more money you make, the more money you'll have to invest.
There are a variety of ways to increase your income, such as getting a promotion, job hopping, or creating passive income streams.
No matter how you choose to increase your income, the key is to make sure you're actively working towards this goal.
Final Thoughts on How to Get Rich with $30k
If you want to become a millionaire and get rich and you have $30k to start with, there are several different options available to you.
Between investing in real estate, the stock market, and other businesses – growing your money and building wealth can be effortless.
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