We are all looking for the ways to double our money fast. People try to find out the right way of investing their money so that to double it in short order. There are several approaches where doubling your money can be reached in a particular period. It is important to remember that there is no magic concerning duration. Money double requires great patience. One is to think of the right option of investment, where he can continue being invested for a particular time. Your unflagging interst and patience together will double your savings quickly. However you have to consider the fact that returns are dependent on demand and supply, infation, reforms and many other aspects. That is why something that worked for your friend does not necessarily mean that it will work out for you. Taking risk is the straight way to double or even triple your money quickly.
How long does it take to double one’s money?
The Rule 72 is the way to work out how much time it is needed to double your money. This rule computes how long it will take for an investment to increase if its upturn compounds annually. The Rule of 72 is often taught to newcoming investors as it is easy to make out and calculate. You are to devide 72 by expected annual rate of return, resulting in the number of years that will take you to double your money. This rule is an extremely functional for planning your retirement and long-term economical planning in general.
Here are several possible ways to double your money:
- Real estate. It doesn’t seem like the way to help you double your money quickly. However it gives steady gains rather than intensive growth. It is possible to create a constant rental income by investing in real property. Homebuyers usually trust mortgage to make purchase. In 6 to 7 years, your property’s value can double. The problem is that real estate forces you to invest a big capital to keep your home in good condition, pay taxes and paying out mortgage. However, in 6 to 7 your property’s value can double. Also many factors influence the return, including location and infrastructure in nearby area.
- 401 (k) match. It’s the easiest way to double your money. Investing into your employer’s retirement account gives you the possibility to earn money. Usually an employee volounteers to give a certain amount from his paycheks. Its up to you to decide how much you would like to deduct from your paycheck. However, some employers demand that you stay employed for a certain period of time, usually 3 to 4 years, before those funds are completely vested.That’s the lowest-risk way to make money, besides all the wonderful benefits you get of a 401(k) plan.
- This is the way of taking advantage of ever-changing token prices and high levels of volatility. Buy high anf sell low without any effort. Of course, it’s the chance to lose money as well. Before starting to invest your money into cryptocurrency you have to analyze market charts and trends of the crypto you are going to invest into. Unfortunately, this way of investing is overhyped and you always have to be on the watch. If you are not able to manage your positions, there are many easier and lower-risk ways to double your money.
- If you prefer lower-risk ways to double your money, bonds is your choice! Consider discount bonds, which are bought at a discounted price. The money you have invested into zero coupon bond doesn’t produce a regular interest during the tenure. The investor is rewarded at the time of maturity. Finally, you’ll get a lump sum. Choose Zero Coupon Bond if you are not wiiling to worry about any market trends. Purchsing municipal Zero Coupon Bonds is the perfect option to avoid tax as long as they are tax-free.
- Another popular way to double your money quickly is investing into S&P 500 index fund. S&P 500 index fund has a long history of strong performance, therefore it indicates its bright future. Long-term return making up to 10 percent annually can also attract investors. S&P 500 index fund also includes a large spectrum of different sectors. It helps us to mitigate risks because when one sector is not giving us the profit, the other one can compensate this loss. S&P 500 index fund has low fees. This factor makes sense since fees can eat into your investment refunds.
Doubling your money quickly always takes large risks. It is not simply possible to earn enough from safe bank products. On the other side, it is important to remember to be reasonable in order to push the luck. You always have the possibility to have high returns from lower-risk investments such as house, S&P 500 funds and 401(k) matching.