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You are here: Home / Finance / Best Way to Invest 5000 Dollars: A Step-by-Step Financial Plan
Best Way to Invest 5000 Dollars: A Step-by-Step Financial Plan

Best Way to Invest 5000 Dollars: A Step-by-Step Financial Plan

October 6, 2021 By Cade Hildreth Leave a Comment

What is the best way to invest 5000 dollars? This is one of the most common questions that I get on my  Instagram stories. It’s a reoccurring question for two key reasons:

  1. It’s the amount of money people have saved up and are ready to deploy.
  2. It’s the amount of money people aren’t scared to part with.

If you only have $5,000 to invest, there’s a surprising answer as to what you should invest in. If you only have $5,000 to deploy, the one thing you should be investing into at this point in your wealth building process is…you.

What is Money?

What is money? It took me years to figure this answer out and to really understand it. It also took a successful mentor to reveal it to me.

So, what is money, really? Money is a scarce, in-demand resource.

To get more of it, you have to make yourself into a scarce, in-demand resource, because people will only trade their money for things of equal or greater value.

The reason that you only have $5,000 to invest is that you aren’t yet commanding a high income within the marketplace. You aren’t commanding a high income, because you’re not yet a scarce, in-demand resource.

Therefore, you can’t trade your skills for other scarce, in-demand resources (money).

If, and only if, you make yourself more valuable to others will you be paid more than you are right now. That’s how our marketplace works. It’s very simple: you are paid in proportion to what you are worth.

Thus, if you only have $5,000 to invest, the first and only thing you need to invest in is yourself.

Thankfully, we’re now live in the Information Age, so the ability to acquire scarce, in-demand skills is literally at your fingertips and you can either do it for free (via YouTube, articles, and podcasts) or for a small investment (via digital courses, events, and books).

Increase Income First, Invest Second

When you are paid more, then you can save more (dramatically more). And, when you save more, you’ll have a whole lot more to invest. In my opinion, when you reach approximately $25,000 – $50,000 in savings, you’ve proven that you can effectively collect money.

Thus, you’ve earned the right to turn your attention to external investments, such as investing in real estate, peer-to-peer lending, tax liens, or other income-producing opportunities.

At this dollar value, you’ve also proven that you can control your costs and collect money well in excess of your requirements to live.

If you’re going to be financially free, you have to stop thinking about your bank account 5 days from now and starting thinking about how you want it to look 5 or 10 years from now.

how to invest 5000

If you’re going to be financially free, then you’ve got to learn to treat your life like a business.

With a business, there is the total (gross) money that comes in, then there is money that you spend (invest) to grow the business, and over time these investments create a return-on-investment (ROI).

With a business, you would starve it of growth if you tried to take every cent out of it. This is what most small business owners do and it’s why most small businesses fail.

In contrast, successful companies know that success depends on reinvesting some of the profits back into the business.

When you treat yourself as a business, you commit to growing your income earning potential by acquiring increasingly valuable skill sets. 

Thus, when you produce money or get paid by an employer, you should immediately re-invest some of it into making yourself more valuable, so that over time, you’ll achieve an ROI.

You simply can’t save your way to financial abundance. Despite what your parents and teachers taught you, that is financial contraction. It is financial defense.

Investing some of your money into creating new income-producing opportunities for yourself is the most direct and rapid path to wealth. Whenever you meet someone who created wealth quickly, this is what they have done. This is financial offense and it’s how you want to play the game.

How to Increase Your Income?

Alright, if you believe me that you need to become more valuable in order to earn more money, the question then becomes, how do you do this?

Unfortunately, school isn’t a great way to get paid a premium within the marketplace, because in school, everyone with the same degree learns the same skills. That means your skills are a commodity.

In contrast, to become a scarce, in-demand resource that the marketplace wants, needs, and will reward with a big paycheck, you’re going to need to stack new skills on top of what you were taught in school.

If you’ve only been able to collect $5,000 to date (and not $50,000 or $500,000), then you’ll need to invest your early earnings into self education, including books, digital courses, live trainings, and mentorship. I’d encourage you to budget at least 5 to 10 % of your total income to this each year—and the more, the better.

Most likely, your parents taught you to conserve money, not to spend it to create abundance and financial freedom. However, to become financially free, you have got to learn to let go of scarcity and start making investments into yourself.

At first, your investments will be small, like $50 or $100, but with time, these investments will grow. That is when wealth will become a self-propagating cycle for you.

Each investment into yourself will make you more valuable, and each time you become more valuable, you will have more money to invest back into yourself, your skill sets, your connections, and eventually, income-producing assets that put even more money into your bank account.

If you’re ready to bump up your income, here are six skills that you can teach yourself immediately to have higher earning potential.

Best Way to Invest 5000 Dollars

To summarize, the best way to invest your first $5000 is:

  1. Invest some (or all) of your money into learning new, more valuable skills
  2. Get rewarded with an increased income
  3. Save more of your total income
  4. Once you’ve saved $25,000 or more, start investing into cash flow producing assets
  5. Reinvest your investment gains into new cash-flowing producing assets

When you do this, you’ll exponentially grow your wealth over time.

Does this wealth building process make sense to you, and if so, where are you in the process? Are you in the skill stacking phase where you’re working to increase your income? Or, are you ready to deploy your money into cash flow producing investments? Let me know in the comments below.

Want to stay in the loop? Join nearly two million other readers who are learning how to increase their income, invest in real estate, buy and sell crypto, and so much more.
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“As an LGBTQ+ entrepreneur, real estate investor, former USA Rugby Player, and fitness fanatic, I’ll teach you what your parents and teachers should’ve taught you, but didn’t know themselves.” -Cade Hildreth

Want to know what I learned making my first few million? Subscribe here.

Or, listen to Cade’s articles on the go as a Podcast.

Because it’s the New Year, let’s talk about ch Because it’s the New Year, let’s talk about change...

For a long time, I’ve thought about top surgery. I remember when I was 6 or 7 years old when I wanted to run around outside on a hot, sunny day with my shirt off…and I first saw my parents… hesitate. Ughh. 

It wasn’t their fault but I still remember that heart wrenching feeling. To their credit, they ultimately said, “Ok, go do it!” While I did “do it”, I remember the feeling of shame that crept in.

Over the years, being in affirming sporting/rugby circles helped suppress the urge to get top surgery, but it never quite “stayed down.”

So last summer I got keyhole #topsurgery. I’ll talk about recovery in another post because it was definitely weird to not strength train for months.

But in THIS post, I want to share two things:

1. I am SO grateful to my wife Erin for being the supportive and growth oriented partner that she is. 🥰🙏❤️ 

She is now following her call to get a divinity degree and she’s already working in ministry as a Pastor in Training at an incredible, inclusive Presbyterian church here in Virginia. I am grateful to her for supporting me as I become more and more of who I am—and I’m enjoying watching her do the same! Love you, babe!

2. Second, I’m grateful to get to share who I am with my family. This summer we took a trip to Madden’s resort in MN to celebrate my parent’s 50th wedding anniversary. (It was actually their 52nd, because we had to postpone it twice due to Covid.)

I was nervous to be in the pools and lakes around them, but I could feel it was my only choice because I knew I wanted them to “know me”. And, how could that happen if I “hid me”?

Ultimately, I have to tell you…it was freeing to be me, as I am, who I am. 

I had the BEST time splashing around and biking and goofing around with my wife, niece, nephew, & sister. 🌊🏖🐟

So, I suppose, this is a gratitude post to thank those who have supported me over the years as I become more and more of who I am. 

Top of that list is my wife, Erin, but there are countless others. ❤️

If you’re reading this, thank YOU for being one of those people in my life too. I am deeply grateful. 🥹
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#lgbtqfamily #nonbinary
How to set a boundary? 🤔 . . . . #lgbtqia #lgb How to set a boundary? 🤔 
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#lgbtqia #lgbtqcommunity #emotionalhealth
What do you do if you’re telling a past story ab What do you do if you’re telling a past story about someone who has transitioned? 🤔 Share a 💯 if you agree ➡️🏳️‍⚧️🏳️‍🌈
7 things I got clarity on in 2022: 1. Good and b 7 things I got clarity on in 2022: 

1. Good and bad are labels. All things are experiences. 

2. Maturity is taking full responsibility for oneself. 

3. Having a loving, conscious relationship with myself is a core value. 

4. Emotions do not mean that anything has to be done. 

5. When I am in congruence with what I want, I have it. 

6. I have permission from myself to stop doing anything that doesn’t lead to my peace and empowerment. 

7. Stepping toward emotions and being able to feel them is a superpower. It determines the quality of my life. 

(Are there any above that you’d like me to further explain?)
 
Most importantly, which # above resonates with you? ⬆️

Happy New Year, y’all! 🎊🥳
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#lgbtqcommunity #lgbtqiaplus #lgbtsupport #nonbinary #trans #selfgrowth
Interview with Jenny Nguyen, Founder of the Sports Interview with Jenny Nguyen, Founder of the Sports Bra—The World's 1st Bar to Only Play Women's Sports - shorturl.at/doGHZ

I'm excited to introduce you to today's #podcast guest, Jenny Nguyen, who is a professional chef, elite athlete, and entrepreneur.

I invited Jenny onto the podcast because she has done something extraordinary that is long overdue: She has opened up a sports bar that exclusively plays women's sports!

Despite extensive research, Jenny hasn't found another sports bar worldwide that ONLY plays women’s sports.

Given that it's nearly 2023, this is mind-blowing. As a lifelong athlete, I find her vision compelling and inspiring.

Aptly called the "The Sports Bra", the venue is putting Jenny's culinary skills on display alongside women's sports worldwide.

The Sports Bar has taken its mission a even further by partnering with and elevating other local, women-owned businesses.

Specifically, it:

1. Sources its grass-fed beef from @CarmanRanch, an ranch run by Cory Carman, a third gen rancher out of Wallowa, Oregon).

2. Sources its alcohol from Freeland Spirits, an all-women owned and operated distillery out of NW Portland.

3. Has furniture built by @girlsbuild_org, a non-profit organization headed by @ktmhughes in Portland, OR, that teaches carpentry and construction skills to young girls as a path to empowerment.

Since opening the Sports Bra this April, people have come from ALL over the U.S. and the world to experience it—including many professional female athletes.

To learn more about Jenny as she makes history, features women's sports, and elevates women-run businesses, listen to the episode here:

shorturl.at/doGHZ

Or, you can check out the Sports Bra at:

@thesportsbrapdx
TheSportsBraPDX.com/

Have you heard of the Sports Bra or been out to experience it in person?

#lgbtqiaplus #womenownedbusiness #lgbgtqia #lgbtqcommunity #womenssports #womeninsport
Over this recent holiday stretch, we… - enjoye Over this recent holiday stretch, we… 

- enjoyed some quiet time at home
- got a sauna delivered (but not yet installed)
- decorated for the holidays
- baked a bunch
- visited our favorite farm
- did some sight seeing
- and perhaps, most importantly, survived the cold snap along with our feather friends (who lived in the garage for a few days so we could heat them with a space heater) 🥶🐔

How have the holidays treated you…and did you get hit by the winter storms? ❤️🎁☃️❄️
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