Luis Pazos 
If you’re trying to figure out the best way to invest $20K-$25K, you’re in the right place. First, let’s consider your investment goal: are you looking to keep your money safe or maximize returns?
High-Interest Savings Accounts
High-yield savings accounts are straightforward. They don’t offer huge returns compared to stocks or bonds, but your money stays safe (unless the world ends). People use these accounts for emergency funds or when they need quick access to cash. They earn more interest than regular savings accounts, making them a good place to park your $20K-$25K if you don’t want to lose it overnight.
Fundrise
Fundrise is one of the top sites for real estate investment without the hassle of being a landlord. You can start with as little as $10, and Fundrise pools smaller contributions into larger loans for income-producing real estate. It had a return of 22.99% in 2021 and charges a 1% annual fee, which is lower than many other REITs. Setting up an account is easy, and they offer a service called Fundrise 2.0 that handles the investing for you.
Invest on Your Own
If you know what you’re doing, you can also manage a portfolio yourself. Betterment is a great tool for investing in a mix of stocks and bonds based on your risk tolerance. It automates investing and re-balances your portfolio using expert advice, taking much of the guesswork out of the process. Similarly, Ally Invest lets you pick and choose your investments and offers low trading fees, though you’ll need to do your own research.
Certificates of Deposit (CDs)
CDs are super safe. You lock your money away for a set term, and it accrues interest. If you withdraw early, you get penalized. CDs have better interest rates than traditional savings accounts, making them worth it if you have patience.
Money Market Accounts
Money Market Accounts are boring but stable and sometimes offer similar protections to savings accounts. They might not earn as much interest, but they’re a good option if you need quick access to your money.
Peer-to-Peer Lending
Peer-to-peer lending is another way to invest, lending money to others. It’s riskier, but it can offer high returns. Lending Club is the largest platform, and you can start by investing in small amounts across multiple loans.
Financial Advisors
If managing your own investments sounds daunting, a financial advisor can help. Be careful to choose someone trustworthy and ensure you understand their recommendations before investing.
Pay Off Debt
If you have consumer debt, consider using your funds to pay it off. Debt often has high-interest rates, which can outpace potential investment returns. Eliminating debt frees up future income that would otherwise go to interest payments.
Start an Online Business
For the entrepreneurial types, $20K-$25K can go a long way in starting an online business. You can invest in web design, content creation, or marketing. Blogging is one option that can eventually pay off handsomely.
Become a Freelancer
You could also invest in becoming a freelancer. Buy quality equipment and market your services. Whether it’s photography, fishing, or any other passion, $20K can help you get started.
Educate Yourself into a New Career
Consider using the money for education, which can lead to a lucrative new career. Education is a solid investment in yourself, often yielding long-term benefits.
Pause and Wait
If you’re unsure, it’s okay to wait. Park your money in a high-yield savings account while you think things over. It’s better to wait than to make a hasty mistake.
Remember, investing is a journey. Take your time, do your research, and make informed decisions. You got this!
