How Would I Invest £10,000 Now?

Every Sunday, I send you something to THINK about, a question to ASK yourself, something to TRY and invite you to SHARE.

Want to advertise in this Newsletter?

Book HERE

THINK

“Part of being successful is about asking questions and listening to the answers.”

– Anne Burrell

Before I dive into this week’s Newsletter, I just want to say a quick THANK YOU to everyone who joined me on the ‘Hangout with Huw’ last night. 🙌

I thoroughly enjoyed it, and I’ll definitely do it again… only this time I’ll give you more than 6 hours’ notice. 🤦‍♂️🤣

There were 15 people at one point, and I got a chance to speak to everyone. It was so great to connect with you.

Thank you for being so vulnerable and honest. Your input was valuable. I got the impression everyone benefited from that.

Thank you also for your kind words and ongoing support. It means a lot! 🙏

Now, let’s talk money….

I received an email from a reader this week, James K.

He said:

“[Praise redacted] I would love to see an Ask Huw section for example I have 10k to invest what would Huw do kinda response. Not saying you need to use this but it’s an example and I reckon a lot of us would certainly love seeing these types of questions being answered by you.”

Great idea James. Thank you for sharing!

If you have any burning money questions you’d like me to answer in a future Newsletter, follow James’s approach and email them to me at huw@huwsview.com.

Here you go James…

How would I invest £10k now?

Everyone’s goals and circumstances are different.

I can’t and don’t give independent financial advice.

I’m not qualified and… I actually care about you. (Zing!)

With that out the way…

Investing £10k is a great opportunity to grow your wealth, but the best approach depends on several factors like current financial situation (debt, emergency fund, expenses, etc.), your financial goals, risk tolerance and financial obligations.

Here are some things to consider before pulling the trigger:

(I was a poet and didn’t realise)

1. Before Investing

Debt: Do you have high-interest debt? Pay off any debt with an interest rate higher than the current easy-access savings rate (>5%) before investing. You’ll not only get guaranteed good returns, but you’re also buying psychological freedom, which is worth a lot.

Emergency Fund: The generic advice is to ensure you have 3-6 months of living expenses in an easily accessible account. I agree. But for many, £10k is a big deal, and 3-6 months of expenses might eat up the whole thing.

NOT ADVICE: If I was short on money, I’d pay off high-interest debt, save at least £2k for an emergency fund (which will cover most accidents/emergencies), and use the rest to increase my income before investing (see 2).
Don’t see money sat in cash for an Emergency as wasted capital. It provides confidence for you to spend or invest the rest.

2. Upskilling

Higher ROI: Once debts have been eliminated and you have some spare cash set aside, I’d look at opportunities to upskill and earn more money before investing. WHY? The potential ROI is considerably higher in business than in investing.

Follow Curiosity: Use the money to upskill in an area of interest. If you’re curious about YouTube, Social Media, Consulting, Property, Dropshipping, etc. Use some of that £10k to buy an online course, pay for coaching or a membership linked to that thing you’re interested in. You can also use the money to buy tools, websites, hosting, books, VAs or software that will help you make more money.

This ‘investment’ could yield you >100%, if not >10,000% ROI. (There is no limit)

3. Financial Obligations

Big Future Spends: After debt, emergencies and upskilling, consider any upcoming financial obligations you might have in the next 5 years. You don’t have to put the whole amount in, but a contribution could help you in the future.

In 1-5 years: Saving for a house deposit, holiday, wedding, kids education, etc.

4. Invest

Once I’d cleared debt, put some money aside for emergencies, invested in upskilling, and covered myself for future financial obligations, I’d throw investing into the mix.

Stocks: This is my favourite investment due it’s ease and passivity. Don’t waste your time and effort trying to pick individual stocks. I stick to low-cost global index funds for broad market exposure and use the additional free time and resources to make more money in business. A low-cost global index fund will also outperform over 90% of stock pickers, financial advisors and professional fund managers.

Property: In all likelihood, £10k won’t get you very far in property. You could use the cash for upskilling (course or coaching), to loan to a property investor you trust for a fixed return (ie. 8-10%) or to save towards your first deposit.

Cash: If you want to grow your wealth, avoid storing large sums of your money in cash. In the last 50+ years, inflation has outperformed cash savings. However, if you’ve followed the path above, adding a little more money (5-10%) into cash savings can be used to pounce on a future opportunity or to further secure your Emergency Fund.

Crypto: Don’t invest in Crypto if you haven’t invested in Stocks or Property. It’s too new, volatile, lacks intrinsic value, is unprotected and tax-inefficient. IF… big if… you’ve got everything else covered above, I’d only consider investing up to 5% of my Net Worth into Crypto.

£10k Example Distribution

Here’s an example of what a distribution could look like in the order I’d consider them.

If I didn’t have debt and had an Emergency Fund in place, I’d put more into Upskilling (if required) and then invest the rest.

£3,000: Clear all high-interest debt (>5%).
£2,000: Store in an easy-access savings account for Emergencies.
£1,000: Upskill to make more money (courses, coaching, memberships, online tools, etc.)
£3,000: Invest in Stocks (low-cost global index fund)
£500: Easy-access cash savings
£500: Crypto (Bitcoin and Ethereum)

£10k Checklist

I can’t tell James or you what to do without fully understanding your situation.

But there are some ‘rules’ I’d recommend to help you decide. This isn’t a prescription to follow but a checklist to consider:

Eliminating high-interest debt is more important than investing.
Having cash for emergencies is calming.
Use any money above an Emergency Fund to pay down high-interest debt.
No investment return can match the income potential of business. Prioritise upskilling before investing.
Investing for quick returns is a fast way to go broke. Slow and steady wins.
Stick to Stocks and Property before considering Crypto.
Having surplus spare cash to deploy is a smart move. Ask Warren Buffett.
If you want to invest in Crypto, keep your allocation small (<5% of your Net Worth) to limit catastrophic loss.

What would I ACTUALLY do with £10k right now?

With zero high-interest debt, a comfortable Emergency Fund, self-sustaining businesses, and no upcoming financial obligations, I’d do the following:

I’d put 10% of it into my guilt-free spending account to blow on WHATEVER I DAMN WANTED. 🤑
I’d keep 10% in cash to deploy however I needed to in future.
And invest the remaining £8,000 in stocks via a tax-advantaged account (ISA/SIPP).

Do you have a question for me?

HIT REPLY, and I’ll do my best to answer it.

Reflect and share this with someone.

ASK

“Am I allocating money in the most efficient manner?

“What burning money question would I love Huw’s thoughts on?”

Write down what comes to mind.

TRY

You likely haven’t been gifted £10,000 recently, but I still believe there’s value in this post…

The £10,000 is an arbitrary number. It’s irrelevant.

The order I’ve presented above holds true for your spare cash after expenses.

I would still allocate money in the same way irrespective of whether it was £10k, £1k or £100.

Taking it a step further, plan in advance what order you’re going to allocate your spare cash.

Then, if you’re lucky enough to receive a lump sum someday, you know what to do with it.

HIT REPLY and let me know how you’d distribute your money. I’ll happily share my thoughts.

I read and reply to every email, and remember, I’m rooting for you!

Remember: Little by little, a little becomes a lot.

Reply to this email and share how it went for you. Let me know if you’d prefer to remain anonymous.