How to make your money double in a year

If you want to analyze offers like these or establish investment goals for your portfolio, there’s a quick-and-dirty method that will show you how long it will really take you to double your money. It’s called the rule of 72and it can be applied to any type of investment. How the Rule Works To use the rule of 72, divide the number 72 by an investment’s expected annual return. The result is the number of years it will take, roughly, to double your money. For example, if the expected annual return of about 2. Depressing, right? CDs are great for safety and liquiditybut let’s look at a more uplifting example: stocks.

4 Realistic Ways to Double Your Money Fast in a Year

That said, doubling your money is a realistic goal that an investor should always aim for. Broadly speaking, there are five ways to get there. Which you choose depends largely on your appetite for risk and your timeline for investing. When it comes to the most traditional way of doubling your money, that commercial’s not too far from reality. The time-tested way to double your money over a reasonable amount of time is to invest in a solid, non-speculative portfolio that’s diversified between blue-chip stocks and investment-grade bonds. It won’t double in a year, it almost surely will eventually, thanks to the old rule of The rule of 72 is a famous shortcut for calculating how long it will take for an investment to double if its growth compounds. Just divide your expected annual rate of return into The result is the number of years it will take to double your money. Dividing that expected return into 72 indicates that this portfolio should double every nine years. That’s not too shabby when you consider that it will quadruple after 18 years. When dealing with low rates of return , the rule of 72 is a fairly accurate predictor. This chart compares the numbers given by the rule of 72 and the actual number of years it would take these investments to double in value.

Three simple steps to double your money

Notice that, although it gives a quick and rough estimate, the rule of 72 gets less precise as rates of return become higher. Even the most unadventurous investor knows that there comes a time when you must buy, not because everyone is getting in on a good thing but because everyone is getting out. Just as great athletes go through slumps when many fans turn their backs, the stock prices of otherwise great companies occasionally go through slumps, which accelerate as fickle investors bail out. As Baron Rothschild once said, smart investors «buy when there is blood in the streets, even if the blood is their own. Nobody is arguing that you should buy garbage stocks. The point is that there are times when good investments become oversold , which presents a buying opportunity for investors who have done their homework. The classic barometers used to gauge whether a stock may be oversold are the company’s price-to-earnings ratio and book value.

Now, Let’s Talk Safety vs. ROI

Do you want to double up your money in a year safely? Are you worried about your future expenses and would like to make a whole lot of money within a short period of time? If the answer is a yes, then this post will surely help you. The tips and money making ideas enlisted in this post are quick and easy and we are hoping you will be benefitted greatly. The following mentioned are few tips on how to make money and also ways to double your money within 12 months. People often believe in the 72 equation and like to think it is straight forward and easy to double up your cash.

Contrarian Stratagem

Related: How much will that college really cost? For the latest business news and markets data, please visit CNN Business. However, if you stayed invested throughout those 27 years, and you reinvested all of your gains, you would have earned roughly 10 percent per year. Most entrepreneurs and business experts are of the view that doubling your money in one year is a dream that can only be achieved on paper or via word of mouth. So get started now, and improve your chances of a more comfortable future. A friend of mine once had some money—his savings—lying fallow in his bank account. Related: When will I be debt free? But remember, two times zero is still zero. Through the website mpney buy products—mostly used products—at auction prices. Basics Rules of Thumb. How can you double your money by selling used items on EBay? To double your money this way, you need help from two places: your boss and W Sam.

1. Share your knowledge

For the latest business news and markets data, please visit CNN Business. Despite that reality, there is one very easy option available to many people that will enable them to double their money by investing it.

That easy way to double your money? Invest in your Traditional k plan or your employer’s equivalent at work. To double your money this way, you need help from monney places: hlw boss and Uncle Sam. While both may very well be tk to help you out, they’ll only do their part if you do your part. By putting money in your Traditional k plan, you reduce your taxable income for the purposes of federal income taxes. Also, by putting your money in that plan, you qualify moneh any matching contributions your employer may offer.

Related: How much house can you afford? To get that match, doule, you first must contribute your own money. You have the opportunity to potentially double your money for up to as much as your employer will match, though you might be able to contribute more to your plan to build your wealth that much faster.

Related: How much will that college yyear cost? When you get your W2 from your employer to file your taxes, your wages in Box 1 will be reduced by the amount you contributed to your Traditional k.

By eyar that starting point for your income, your taxes are reduced compared to what they’d be if you hadn’t contributed to your k. Related: When will I be debt free? While those three steps are enough on their own to potentially enable you to double your money, making an initial investment in the plan is just the first stage of building your wealth.

Once it’s socked away, it needs to be put to use in a way that it can potentially increase in value for you. Typical k plans only allow you to invest in mutual yea or exchange-traded funds.

Even with those restrictions, you may very well have some great options to choose. Related: How fast will my savings grow? As you get closer hos retirement, it becomes important to shift the money ih need to spend in the next few years into shorter term assets with higher certainty than stocks. You’ll be giving yojr the higher potential returns that stocks offer, but you’ll have a greater chance of that money actually being there when you need it.

Government bonds with one- to five-year maturities and also carries a minuscule 0. Very few investments in life offer you the potential to double your money as easily as you can by investing in your Traditional kaccepting your employer’s howw, and watching your contribution reduce your taxable income.

If that opportunity is available to you, the how to make your money double in a year you start taking advantage of it, the more quickly it can help you build your nest egg. But remember, two times zero is still zero. You have to take the first step and contribute to get the rest of the money headed your way. Even if your personal circumstances are such that your tax rate and employer match won’t let you double your money quite that easily, take a good look at the retirement plan you have available at work.

You just might find that the features it offers you still give you an incredible toolset to help you fund a comfortable retirement. Still, in order to get yourself on that path, you need to take the first step and participate in the plan.

So get started now, and improve your chances of a more comfortable future. Chuck Saletta has no position in mobey stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. We’re no longer maintaining this page. Save a million before you retire. CNNMoney Sponsors. SmartAsset Paid Partner. These are your 3 financial advisors near you This site souble and compares 3 financial advisors in your area Check this off your list before retirement: talk to an advisor Answer these questions to find the right financial advisor for you Find CFPs in your area in 5 minutes.

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How to Double Your Money 💵💵

If you have a question, either use the contact xouble on the blog or use inn Facebook Fanpage. I ran across one of your articles via Google and wanted to inquire your thoughts on what a first time investor should do in order to maximize ROI. Hypothetically, what are the safest options for a 10, investment, and is it enough to get a good head start in the market? Ideally, I would like to double or triple this over time.

Conclusion:

If you are interested in learning more about investing an inheritancesafe places to store your money, and the best places to open up a brokerage or savings accounthere are some good reads:. That would be a perfect world. Think of safety and ROI as a seesaw. There are plenty of investments you can make which have very little risk to. Bonds are a common low-risk investment. Bonds will give you a modest return depending on the type of bond and they have almost zero risk. At the other end of the spectrum is stocks, REITs, and high-yield bonds. These are going to have a much higher risk, but there is a chance you could make a lot more money.