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5 Proven Ways to Double Your Money The Motley Fool

how to double money

Taking your 401(k) match isn’t as exciting as putting all your chips on red — but it’s a lot safer. In truth, an employer match in a 401(k) is probably the closest thing to a sure bet you’ll find in personal finance. Unfortunately, the cryptocurrency arena is a fertile hunting ground for scamsters, and there are numerous instances of crypto investors losing a great deal of money through fraud. Would-be cryptocurrency investors should therefore take the utmost care when putting their hard-earned money into any cryptocurrency.

Invest in an S&P 500 index fund

how to double money

You don’t have to live or die by one doubling strategy either. You could simultaneously earn your full employer match, buy and hold an S&P 500 index fund, ramp up your investments in downturns, and speculate lightly in stocks or funds with high growth potential. Let’s now turn to the time and risk attributes of an investment itself. An investment that has the potential to double your money in a year or two is undoubtedly more exciting than one that may do so in 20 years. The issue here is that an exciting, high-growth investment will almost certainly be far more volatile than a staid, “Steady Eddy” type of investment.

Achieving Your Investment Goals

The higher the volatility of an investment, the riskier it is. This increased volatility or risk is the price that an investor pays for the allure of higher returns. If you need to double your money on a fairly quick timeline, old standards like savings accounts or buying real estate likely aren’t going to do it for you. 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. Investing in stocks and ETFs is another way to double $10k quickly.

Value stocks

For just a few dollars, you can invest in various funds, commodities, NFTS like Bitcoin cryptocurrency, and stock shares. This is not an offer to buy https://www.quick-bookkeeping.net/direct-and-indirect-materials-cost-calculation-and/ or sell any security or interest. Working with an adviser may come with potential downsides such as payment of fees (which will reduce returns).

  1. This article will cover 7 different ways to see high returns on your money and build true wealth.
  2. Even better, you might compound your wealth by doubling it again.
  3. The challenge, right now, is finding the proper vehicle for compounding your money.
  4. Unlike other assets like vehicles, property tends to appreciate in value over time.
  5. Peer-to-peer lending is a way for individuals with capital to lend it to individuals and businesses who could not otherwise qualify for traditional bank loans with favorable interest rates.
  6. That’s the easiest, lowest-risk way to make money, and you still get all the great benefits of a 401(k) plan.

While there are no guarantees when investing, it is very possible to double $10k quickly. If you’re seeking future financial security, aim to double your money, and double it again. “If you have an aggressive risk tolerance and are looking at more risky https://www.quick-bookkeeping.net/ investments, you have an opportunity for higher gain, but also the risk of bigger losses. The higher the risk, the greater the rewards.” Fortunately, there are other avenues you can explore, including the opening of a high-yield savings account.

With traditional savings accounts, for example, your opportunities for growing your cash are limited (the average APY is a mere 0.42% right now). Another guaranteed way to double your money is by buying Series EE Savings Bonds from the U.S. While the bonds currently yield a paltry 0.10%, EE Savings Bonds have a special mechanism that guarantees you double your money if you hold them for at least 20 years. After 20 years, the bonds will continue to earn interest for another 10 years.

how to double money

Although your investment growth will likely be slow over the first few years, you should see a steep rise in growth after that, provided you’ve invested wisely. However, with a smart investment strategy, you can mitigate this risk considerably. Every investment, no matter how “safe,” has an element of risk to it, and you need always to remember writing off stock this when you’re looking for a major financial boost. 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. Follow our Motley Fool investing philosophy and you’ll buy 25 or more stocks, while aiming to hold them for at least five years.

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. This website is an independent, advertising-supported comparison service. We want to help you make personal finance decisions with confidence by providing you with free interactive tools, helpful data points, and by publishing original and objective content. We’ve shared a mix of ways to double $10K in timeframes that span several months to several years.

When your home increases in value to $240,000, you’ll have the original down payment of $40,000 plus a capital gain of $40,000 for a total gain of 100 percent. We are an independent, advertising-supported comparison service. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear), but does not influence our editorial integrity. We do not sell specific rankings on any of our “best of” posts or take money in exchange for a positive review. Other safer ways to double your money — at a slower clip — are a much better bet.

In addition, very high returns compared with the historical norm may reduce the potential for future returns. For example, the S&P 500 recovered from its 2020 plunge in record time and powered its way to new allowance for doubtful accounts and bad debt expenses record highs by year-end 2020. Although it returned a jaw-dropping total return of 100% from 2019 to 2021, such stellar returns may mean that future returns from the S&P 500 could be significantly lower.

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