This question was posted to Quora recently and I decided to hop in with a fairly lengthy answer since I was in a very similar situation about a decade ago. Since Quora’s still behind a wall for most people I thought I’d repost my answer here.
If you were 24 and had $200k in spare cash, how would you invest it?
I was actually in a very similar situation to you a decade ago (sold my first company at 24) so I can offer some of my thoughts in terms of what I did and what I would do differently knowing what I know now.
#1 – Absolutely do invest in yourself professionally. I’d recommend three things here.
First, consider any/all education opportunities that would allow you to build your network. While college or grad school is totally overrated from a “what you learn” perspective it’s a phenomenal place for getting to know other high achievers. If you can get into an Ivy League school or grad school that’s a really option to consider (since you’ll have enough money to live on for a while).
Second, consider moving to a big city if you aren’t there yet. The opportunities for advancement (personal and professional) are typically greater in a place like NY, SF or LA. Money prevents many people from going but it shouldn’t in your case. I made the move to Cali at 27 but wish I would have done it sooner.
Third, use the money to build your network. Go (selectively) to conferences where you’ll meet interesting and ambitious people. Attend a lot of events. Take a job with a start-up company where you may or may not cash out big but you’ll be able to meet other entrepreneurs and interesting people.
#2 – Invest in yourself personally. Spend some time studying health, exercise and nutrition. Investments made in these areas when you are young pay huge dividends later in life in terms of increased energy, less sickness, better quality of life, etc. The reason many people don’t spend the time they should in these areas is because of time or money. You have both which is a great opportunity.
#3 – If you are making any financial investments try to invest in things that have intangible benefits. Rather than trying to 100% maximize your financial gain (you’ll have plenty of time for that), focus instead on the overall benefit of your investment. For instance, if you think you might be interested in working in another country then invest in some stocks of companies in that country or in that country’s currency or bonds. Doing so will cause you learn more about the country and be that much more prepared if you do indeed make the move. Same thing is true for industries. Thinking about starting an education company? Buy some stocks of education companies and study their 10-Ks, S-1s, etc. You’ll learn a lot more about the industry and if you make money on your investments that’ll be gravy.
#4 – (Adding this one a day later). Travel. When I was 24 I had never left North America. Between 24 and 27 I visited Europe, Africa and Australia. Those experiences were awesome and I’m very glad I took the time and money to do that. I’d highly recommend setting aside a portion of your money for traveling. Specifically look to visit places that will play a big role in the global economic landscape. China and India would be the two musts on my list.
Meaningful travel where you can spend a lot of time in a given place becomes more difficult as you get older (things like kids, mortgages, etc. make this so). If you’re young and have the money and time to do it, traveling can be one of the best investments you could ever make.
#5 – Finally, give some of it away. 
I hope this helps a bit. This is only my personal viewpoint based on my experiences and values. However, I *so* wish I would have read something like this 10 years ago. Not that things turned out badly by any stretch…
Fri, Apr 9, 2010
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