how to double your money

It can actually be relatively easy to double your money by buying real estate. That’s because homebuyers often rely on the power of leverage – that is, a mortgage – to make the purchase. Many employers give employees money just for contributing to their own retirement account.

Know your time horizon and follow the “Rule of 72″

how to double your money

Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of Science in Journalism. She has worked in multiple cities covering breaking news, politics, education, and more. Her expertise https://www.quick-bookkeeping.net/accounting-principles/ is in personal finance and investing, and real estate. Alternative investment options tend to be highly speculative and even volatile. The best investment tip is never to invest more than you can afford to lose.

Trade cryptocurrency

In addition, a retired individual in their 60s with a decent pension and no mortgage or other liabilities probably would have a reasonable amount of risk tolerance. If you don’t have access to a 401(k) plan, you still can https://www.quick-bookkeeping.net/ invest in an individual retirement account (IRA), either traditional or Roth. You won’t get a company match, but the tax benefit alone is substantial. A traditional IRA has the same immediate tax benefit as a 401(k).

Should I invest in cryptocurrencies if I am a conservative investor with very low risk tolerance?

But by examining historical data, we can make an educated guess. According to Standard and Poor’s, the average annualized return of the S&P index, disputing an invoice which later became the S&P 500, from 1926 to 2020 was 10%. At 10%, you could double your initial investment every seven years (72 divided by 10).

If your employer matches contributions to your retirement plan, take advantage of that perk. Invest in a diversified portfolio of stocks and bonds and consider being a contrarian when the market plunges lower or rockets higher. Save on a regular basis to buy a house and keep the down payment in a savings account or other relatively risk-free investment. It really depends on your risk tolerance, investment time horizon, and personal preferences. A balanced approach that involves investing in a diversified portfolio of stocks and bonds works for most people. However, those with higher risk appetites might prefer dabbling in more speculative stuff like small-cap stocks or cryptocurrencies, while others may prefer to double their money through real estate investments.

  1. The Review Board comprises a panel of financial experts whose objective is to ensure that our content is always objective and balanced.
  2. Once you have that detail, you’ll need to follow what’s called the Rule of 72.
  3. In order for investors to double, or even triple their money, they’ll often have to take on some risk for that potential reward.
  4. Although the current rate of interest is a paltry 0.10% for bonds issued from November 2021 to April 2022, they come with a guarantee that bonds sold now will double in value if held for 20 years.
  5. CDs are great for safety and liquidity, but let’s look at stocks.

With zero-coupon bonds, there’s only one payoff, and it comes when the bond matures. When you don’t have much money, establishing connections with those within your neighbourhood can be a great starting point when you are looking to double just a couple hundred dollars liquidity in small business or even less. With the right investments, you can easily double your income in a single day. Familiarizing yourself with the various investment options available and how to make the most of them is your first step to doubling your money while mitigating risk.

Is it two years, 10 years, or just by retirement a few decades down the road? Once you have that detail, you’ll need to follow what’s called the Rule of 72. Fortunately, there are other avenues you can explore, including the opening of a high-yield savings account.

Note, however, that a significant amount of volatility generally accompanies such sterling results. Investors should brace themselves for occasional sharp drawdowns, such as the 35% plunge in the S&P 500 within a six-week period in the first quarter of 2020 as the coronavirus pandemic erupted worldwide. Noel is the founder and main contributor for his blog – Noel’s passion for personal finance has helped him amass over 600k readers to his Financial Geek blog. While there may be extended phases of low return, the S&P 500 tends to deliver a return of around 10% over longer periods. We do not manage client funds or hold custody of assets, we help users connect with relevant financial advisors.

When it comes to the most traditional way of doubling your money, that commercial is not too far from the truth. The time-tested way to double your money over a reasonable amount of time is to invest in a solid, balanced portfolio that’s diversified between blue-chip stocks and investment-grade bonds. Oftentimes, membership sites will charge you depending on your total profits or subscription plan (as the art-related website, DeviantArt does).

You could easily start earning more interest on your money right now. Get started now with Discover and lock in your terms from three months to 10 years. When you first start investing, it might seem like your money isn’t growing much, but often that is because your money hasn’t had enough to compound.

But their speculative nature also means you can lose money on them just as fast as you made it. Thus, without research, analysis, and perhaps a bit of luck, it probably won’t be easy to double your money with alternative investments. Doubling your money isn’t something you should expect to do overnight. However, with the right approach, it’s possible to double your money over time. If you’re looking to double your money through investments, here are the five common strategies to consider. Divide 72 by the annual rate of return to figure how long it will take to double your money.