Strategies for how to double your money

For example, they might match your contributions up to 6% of your salary. So, if your base pay is $50,000, your employer will match your contributions up to $3,000. While doubling your money isn’t always easy, this is one of the quickest and easiest ways to see your money multiply. The volatility of cryptocurrency – whether it’s Bitcoin, Ethereum or Dogecoin – is an opportunity for speculators to make money trading. Of course, it’s an opportunity to lose money as well, but that’s always part of the trade-off if you’re looking to double your money quickly. For example, imagine buying a $200,000 home with a 20 percent down payment, as is typical.

ways to double your money, according to financial experts

Even with interest rates higher than past years, it’s hard to use a bank account to make a significant amount of money. In order for investors to double, or even triple their money, they’ll often have to take on some risk for that potential reward. Although bond interest rates are near all-time lows, there’s one U.S. government-backed bond that stands out because of its promise to double your money. If held for at least 20 years, the series EE savings bonds will double your invested money. Aside from that one-time doubling, they earn a tiny interest rate — which is currently a mere 0.1%.

Get a 401(k) match

Many employers give employees money just for contributing to their own retirement account. For example, employers may match a small percentage of what you add to the account – so you put in 5 percent of your salary, and your employer adds another 5 percent. That’s the easiest, lowest-risk way to make money, and you still get all the great benefits of a 401(k) plan. Any estimates based on past performance do not a guarantee future performance, and prior to making any investment you should discuss your specific investment needs or seek advice from a qualified professional. While day trading or investing in stocks may be legitimate ways to earn cash, there are many other, generally safer ways to earn income which are discussed in this article. Depending on your income, the states you live and work in, and filing status, the tax benefit could be somewhere around 22% federal  and 3% state  — or 25% total.

For short-term earnings look to higher-risk investments

Growth stocks are a great way to not only double your money, but potentially triple or quadruple it, or more. Growth stocks sometimes can be more volatile and risky, though, and they’re often trading at rather lofty levels. So approach them carefully, and aim to buy the ones that seem the most undervalued while offering a lot of potential.

Value stocks

But if you look at how most transactions are structured using a mortgage, you’ll quickly see that buying a home could lead to doubling. To achieve this level of returns over time, there are a number of options that come with limited risk. Meanwhile, those looking to shoot the lights out and double their money quickly have their share of high-risk, high-reward options to choose from, too. 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 or even less.

While the Rule of 72 is a good investment guideline, it only provides a framework. If you’re looking for a more precise outcome, you’ll need to better understand an asset’s future value formula. The Rule of 72 also does not take into account the effect of investment fees, such as management fees and trading commissions, can have on your returns.

1. It’s easy to buy an S&P 500 index fund and you don’t need a lot of expertise to invest this way.
2. These are some of the many ways you might go about doubling your money.
3. Based on the Rule of 72, a 60/40 portfolio should double in about 8.3 years and quadruple in approximately 16.5 years.
4. You won’t get a company match, but the tax benefit alone is substantial.
5. CDs are great for safety and liquidity, but let’s look at stocks.

Still, with good knowledge of the local real estate market, decent renters, and enough capital to handle the surprise costs that arise in real estate, the opportunity is there to double your money. As with any debt, you have to cover your mortgage https://www.kelleysbookkeeping.com/ payment regardless of whether the property is rented or not. In addition, with COVID-19-related eviction restrictions still in place in parts of the country, you may be stuck with a renter who is unable to leave and whom you’re unable to evict.

So the higher the return, the faster you can double your money. You’ll pay a price to own an option contract, and that premium could increase many times in value. The downside is that the option could expire completely worthless. So you won’t want to risk https://www.kelleysbookkeeping.com/financial-terms-glossary/ all your money on the single throw of the options dice. The S&P 500 also has an attractive long-term return, averaging about 10 percent annually over long periods. That means that, on average, you’ll be able to double your money in just over seven years.

For those who don’t want to learn the ins and outs of options but do want to leverage their faith or doubts about a particular stock, there’s the option of buying on margin or selling a stock short. Both of these methods allow investors to essentially borrow money from a brokerage house to buy or sell more shares than they actually have, which in turn raises their potential profits substantially. A margin call can back you into a corner, and short selling can generate infinite losses. Broadly speaking, alternative investments are any investments that are not stocks, bonds or cash. Thus, alternative investments can include a variety of investments, such as private equity, real estate, commodities, collectibles and cryptocurrency.

And while you’re at it, there’s no reason not to minimize your trading costs by going with a top broker. While many cryptos have soared in previous years, they can bounce around significantly, making it tough to hold on when they fall. It’s easy to lose money on cryptocurrency if you can’t manage your positions, and there are much easier and lower-risk ways to double your money. One of the most the three main internal controls for accounting and how they protect your assets searched phrases online is “how to double your money in 24 hours.” Numerous articles on the web claim that many fast and easy ways of increasing your profit with minimum expenditure are possible. Regardless of what path — or combination of paths — you choose to follow in your quest to double your money, the more time you have available on your journey, the better your chances of succeeding.

The first step is to know how quickly you need to double your money. 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. Follow our Motley Fool investing philosophy and you’ll buy 25 or more stocks, while aiming to hold them for at least five years.