1. Money
  2. What To Do With $20K Dollars

How to Flip $20K in Savings (Best Things to Invest In)

$20k could transform your life. Set up an emergency fund, pay off your debt, and invest.

Kimberly Studdard - Finance Writer
Written by
Finance Writer
Derek Sall - Personal Finance Expert
Reviewed by
Personal Finance Expert
10 min
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Table of contents:

Have you come across $20,000 extra dollars? If so, congrats! But, now you have to figure out what to do with it.

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Advertiser Disclosure

If you're not sure how to spend or save it, the below articles is all about what to do with 20k.

And also, we're going to explore everything else that might be associated with that $20k:

  • What should you do with a $20k inheritance?
  • How about a $20k bonus?
  • What should you do with $20k in your 20s?
  • What if you want to use $20k to make money? How do you do that?
  • And, how do you invest $20k?

Like I said...everything!! ;)

If you’re looking for saving, checking, or investment options, check out our helpful posts below:

And be sure to give these other related posts a look too:

And finally, if you’re just looking to get more comfortable with money management, be sure to download this free monthly budget template.

What to do with 20k inheritance?

What can you do with a 20k inheritance?

Of course, the first thing to do is to take the time to grieve if it came from a loved one. Don't make any sudden moves with the money — when you're in an emotional state, you may not think clearly when it comes to spending.

While you're doing that, stick the money in a savings account. You could choose a high-yield savings option so it's also earning some interest while you wait.

Once you've taken the time to start the healing and grieving process, then you can start making plans with the money.

What to do with a 20k bonus?

Now, what do you do if you got a 20k bonus?

First, make sure you won't owe any taxes on it! If you got a bonus from your W-2 job, they should have already done this. But if not, you don't want to owe more to the taxman. Better to be safe than sorry! 

After you've checked that, it's important to look at your short and long-term goals. Do you:

Whatever your goals and needs, this will help you determine how best to spend your 20k. Focus on needs first, then work into wants. P.S. It's okay to have wants! You just want to balance both needs and wants with your windfall.

What to do with 20k in your 20s?

Getting an extra $20,000 in your 20s can be life-changing for most people. But, how you spend your 20k will depend on your individual needs and wants. I'll go into more detail about how to flip and invest 20k below too.

Is 20k in savings good?

Is it a good thing to have 20k in savings?


Especially if you're in your 20s. That could be...

Of course, you'll want to come up with a plan for that money. You don't want to just have 20k saved and not get any benefits out of it. At the very least, put it in a checking or savings account with a high-earning interest rate.

What should I do with my 20k savings?

So, if you stash $20k into your savings, what should you ultimately do with it? You should do whatever you need to do! Here are just a few things you can do with your $20,000 in savings:

  1. Pay off high-interest debt
  2. Get a reliable car (if yours is on its last leg)
  3. Start investing
  4. Start working on earning passive income
  5. Go on vacation
  6. Take a mini-retirement
  7. Donate some of it

Of course, you don't have to do all of these (or any of them). But, they can be used as inspiration and ideas for what you may want to spend your money on.

What to do with 20k to make more money?

Looking to make money with your 20k? It's totally possible! There are quite a few ways to make money with 20k (outside of investing it). Let's talk about it!

How to flip 20k?

If you want to double your money with your 20k, flipping is definitely an option. Want to know how to flip 20k fast? The best way to flip $20,000 is to start a business or invest in something that will earn you money right away.

Here are the best ways to double $20k—

1) Invest in real estate 

The first way to make money flipping is to invest in real estate If you live in a low-cost-of-living area, use the 20k as a down payment on a home, and rent it out to start earning passive income right away.

Read more: What Is The BRRRR Method?

2) Try house hacking 

By investing in real estate, You can also try house hacking. This involves getting a roommate or renting out a room/basement or even an RV on your property to start earning money.

3) Invest in REITs

Invest in a Real Estate Investment Trust (REIT). That way, you don't have to manage people or be a landlord, but still earn money from residential and commercial real estate.

Read more: Invest in Real Estate With CrowdStreet

4) Start a business 

However, I only recommend this if you know you can manage it and make it profitable. There are lots of side hustles and businesses that you can start for less than 20k too. So, you can start there and see if they work out before investing more money into them.

5) Flip cars 

One other way Derek has made money flipping is by flipping cars.

  • Buy them cheap
  • Fix them up
  • And, resell them for a 20%+ profit

With 20k, you could flip multiple cars at once and earn quite a lot if you know what you're doing! Heck, if you're wondering "how can I double 20k?", flipping cars might just be the option for you!

How To Invest 20k: The Best Ways to Make Money

Instead of flipping, you can also invest $20k to earn more money in the future.

Here are some of the smartest ways you can invest $20,000—

1) Invest in dividend stocks

Want to make passive income? There are quite a few ways to do this, but it depends on how much money you want to earn month to month.

With dividend stocks, you invest in a company stock that pays you money each quarter. You can either reinvest these dividends or in some cases, live off of them. The choice is yours.

Here are just a few stocks that pay dividends:

  • Aflac Inc: 2.74%
  • AllianceBernstein Holding LP: 7.9%
  • Camping World: 5.4%
  • Exxon Mobil: 5.9%
  • Prospect Capital: 8.8%

As an example, if you invest your 20k in Camping World, you'd earn about $1,000 a year, or $250 every quarter!

Of course, don't put all of your money in one basket. But, investing in dividend stocks as a whole can give you quite a bit back in passive income.

2) Invest in real estate

Wondering what to do with 20k in real estate? You could choose a rental property, a rental space (like an RV, a garage, a glamping tent, etc), or even invest in REITs that pay dividends too.

If you can split your $20k up fairly, you could potentially try all three.

3) Earn interest on short-term corporate bond funds

You want to keep your 20k safe, but you want it to earn a little money at the same time. So, what is the best way to invest 20k short-term?

Corporate bonds are bonds issued by major corporations. This investment would earn you interest at regular intervals too, usually twice a year. And, with a bond fund, you'd have access to investments across different companies, industries, and more, so your investment is safer than just a single stock.

4) Invest in money market accounts

Another short-term investing solution is money market accounts. Money market accounts are can pay a higher interest rate than regular savings accounts.

But keep in mind that they usually require a higher minimum investment, too. But, if you're willing to invest your 20k short-term, this should be doable.

5) Invest in short-term U.S. government bond funds

Government bonds are similar to corporate bonds. But, instead of being issued by a corporation, they are issued by the U.S. federal government and its agencies.

It's important to note that these bond funds aren't backed by the FDIC. But, at least you know that the government promises to pay you back.

These accounts and funds will vary in how much they earn you. But, they're highly liquid accounts, so you can earn some interest while your money sits short-term.

What is the safest way to invest 20,000?

The safest way to invest 20k is to start investing in multiple options, with a well-balanced portfolio.

A financial planner can help you decide what could work best for you, but, you really just want to focus on index funds and perhaps bonds, and keep them balanced. Not sure how to balance your portfolio but want to learn?

Check out a site like Betterment to get acquainted.

How NOT To Spend Your Money

There are plenty of things that you can do with your 20k to grow it or save it. But, there are also a few things that you shouldn't do.

Here is what you should avoid doing with your 20k:

  • Gambling. Betting on winning big probably won't work. You may win big, but you're more likely to lose all of your money.
  • Investing in a single source. Of course, we all think Apple will stick around for the long haul. But, that doesn't mean investing all of your money in Apple stock! Instead, keep your investments diversified.
  • Blowing it. This can be easy to do if you don't have any plans with your money. Vacations, extra food, and "stuff" sound really good when you have extra money laying around. But you could sabotage your future self if you spend too much.

Of course, the choice is always yours. You can spend your money however you want. But, these may not be the wisest choices if you're looking to set up a financially secure future.

The Smartest Thing To Do With 20k

Sure, you can invest your money in a business, you could put it in a simple savings account, or you could even buy some real estate with it...but what is the smartest thing to do with 20k? 

That all depends on the person.

  • If you have $20,000 of high interest credit card debt, then you should probably pay off those cards!
  • If you don't have any debt, but you're living paycheck to paycheck with no emergency fund, then you should probably just stash the cash in a savings account and keep it there for emergencies!
  • Or, maybe you're doing great financially and you just want a passive investment that's going to earn you decent money for the long term. You might be interested in a simple index fund that follows the overall stock market!

If you want to be smart with 20k, the best thing you can do with the money is park it in a simple savings account for 6 months and just think about what that money could do for you.

Once you take your time and decide, you'll probably do just fine with the use of that money! But, if you don't follow this advice and you just spend the money immediately...chances are that you're going to regret it.

Did you discover what to do with 20k? Where do you plan to put the money??

Editorial team

Meet the team
Kimberly Studdard - Finance Writer

Finance Writer

Kim Studdard is a project manager for online entrepreneurs and small businesses. When she isn't spending time with her daughter and husband, or reading her growing pile of horror books, you'll find her working on her HR degree and working towards FIRE.

Kacper Kozicki - Editor


Editor, copywriter, and multilingual translator with expertise in producing tailored content for global online brands. When not editing articles for LifeAndMyFinances.com, he enjoys rummaging through paper dictionaries, walking in nature, and making travel plans.

Derek Sall - Personal Finance Expert

Personal Finance Expert

Derek has a Bachelor's degree in Finance and a Master's in Business. As a finance manager in the corporate world, he regularly identified and solved problems at the C-suite level. Today, Derek isn't interested in helping big companies. Instead, he's helping individuals win financially—one email, one article, one person at a time.

Deepti Nickam - Finance Writer

Finance Writer

Content writing and marketing professional with 4+ years of experience in the B2B and B2C sectors. Deepti has written about several subjects, including finance, project management, human resources, and more.

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