Posted: 20. September 2019 by: Rupert Tennant

Where to Invest Your First 10K

It sometimes seems like investing is something that’s only there for those who have a lot of money put aside. This isn’t really the case, and almost everyone with a clear and manageable cash flow could start a passive income source via investing.

It can be done with an amount as small as 10K. This is obviously a limited amount, and there’s not that much you can do with it, but it could still be turned into a passive income if you put it towards good use.


Pensions seem like something that’s far away, and young people usually don’t worry that much about their long term planning. This is a mistake, and as soon as you get a job with a steady income, you should put some of it aside and towards your pension.

This is also true with having income or savings that are just laying around. If you have such savings, you’ll do well to simply put it towards a pension fund. A great thing about these funds is that they could be grown and you don’t pay any taxes on the income until you take it out of the fund and start spending it.

Peer to peer lending

Peer to peer lending is lending for small businesses that are done between two individuals. The advantage for the person borrowing the money is that there’s no paperwork and complicated waiting as is the case with banks. The advantage for the lender is that the rates are higher.

There are platforms that are made for this purpose, and there are fees towards the platforms in these cases. It’s also possible to lend directly to a small business you’re personally familiar with. There are no fees in these cases, but that’s a limited pool of investing options.

Stock market

The most common way to invest is to do it via the stock market. It’s something that can be done with £10.000, but there’s a lot of overhead to have in mind as well. The overhead is about investor advisors, the lawyers and the accounting including the tax itself.

Have in mind that you’re investing in companies and not the stocks as some abstract thing. This means that you should invest in a company that you believe has a market to grow into and that’s worth helping out.

Paying off debt

Paying off debt doesn’t sound like investing; in fact, it sounds like the opposite of it. However, in the long run, that’s one of the best investments you could make because it frees you up to do other things with your money in the years to come.  This is especially true for student loans.

It’s best if you pay off your student debts via your salary. The instalments are smaller, and it’s a more responsible way to go. However, paying off a larger chunk of the debt at once in this way is also useful and truly is a form of investing.


Education is an investment in yourself. That’s how you should treat and justify spending money towards your education. If you have some money put aside, it’s best not to use it towards your main educational focus such as a university degree but towards a smaller side project.

For instance, those who are pursuing an education in finance could benefit from a small course in psychology. Soon you’ll notice how the courses you’ve taken are becoming intertwined as you go deeper in the subject matter. It’s also useful to have in mind that this is an ongoing life long process.

Treat yourself

In the end, not all the money you have needs to be put towards good use. Some of it could just be spent on something that you enjoy or care about. Treat yourself every once in a while.  There are no rules as to how to do it, but make sure it’s something that you don’t need, just want.

Most enjoy travelling the most as a way to spend extra money. That’s a great way to learn about the world and about yourself in the end. Make a bucket list and start going one destination at a time.


When you have £10.000 to spare, you should consider investing it instead of just putting it aside. There are many ways you could do so, starting with treating yourself or investing in your education since it’s not that large of an amount. However, it’s also possible to use it as a source of passive income if you want to.

This, too, could be done in a great many ways. You could start with peer to peer lending where you lend directly to a company, or you could go with the stock market. Have in mind this other option comes with overhead.