We all want to make the most from our money. Some of us are willing to take risks, and some want to achieve it more gradually but want to play it safe. Investing in the share market is one of the most popular ways to earn more money within a little less time. Some opt for different types of financial schemes that are provided by banks or other financial organizations. How to double your money? It is one of the most popular terms or taglines used by most financial companies. Here we will tell you about it.
How to Double Your Money?
Here is a guideline for how to double your money.
1. Make It Slowly
The first suggestion of how to double your money. While talking about the most traditional way to double your money is to earn it. Investing in a non-speculative, solid portfolio, which is expanded between investment-grade bonds and blue-chip stocks, is the time-tested method in order to double your money over a reasonable period.
Yes, it won’t double in a year. While calculating how many years it will take to double your money, the rule of 72 is really famous in calculating the duration. To calculate the time, you need to divide 72 by the annual rate you expect for your investment. And the result is the number of years that it will take to double up your money.
Here is another thing with the rule of 72 because it calculates the period with more accuracy when the interest rates of return are low. Here is a chart in order to compare the actual time it has taken and the time calculated with the rule of 72
|Rate of Return||Actual Number of Years||With Rule of 72|
2. Blood in The Streets
The second suggestion of how to double your money. The most adventurous or an investor who does not like to take risks knows that times come when it becomes a must to buy. It is not because everyone is getting good things from it, but because almost everyone is leaving.
Stock prices of great companies sometimes fall, and the fickle investors’ bailout. This accelerates the growth. Baron Rothschild once stated that smart investors buy stocks when the street is full of blood, even if that is their blood.
This does not mean that you need to buy garbage stock. But there comes the time when all the suitable investments are sold at below their actual prices. And here is the chance for those investors who have done their homework quite well, utilize this chance.
When companies slip below the historical averages for any systemic or superficial reason, the excellent investor sees the chance of doubling their money.
Read Also: 10 Benefits of Mutual Funds
3. The Safe Way
The third suggestion of how to double your money. There are fast ways and also slow ways to reach your destination, here doubling your money. In case you want something for playing it safely, bonds can prove themselves as the most suitable option for you. You can go for Bonds named Zero-coupon, and the savings bonds of the U.S. are some of them.
Bonds named Zero-coupon are straightforward to understand. In place of buying a bond with a common interest, you should buy a bond offering a discount to the bond’s eventual value at its maturity.
4. The Theoretical Way
The fourth suggestion of how to double your money. Some belief in slow and steady wins the race, but some fall asleep at the wheel. For them, penny stocks or margin trading is the fastest way to double their money. All of these have the ability to super shrink the asset as quickly.
One hundred shares of any stock are potentially represented by each option of stock. In order to hit one out from the park, for an investor, a small percentage needs to increase in the company’s price. So, you need to be super careful and also have to do your homework quite well. Suppose you do not want to get educated on the ins and outs of options but want to leverage their doubts and faith for a particular stock. There is an option for them to buy a margin or sell a stock.
5. The Best Way
The fifth suggestion for how to double your money. Contributing to a 401(k) is always considered the best way. Yes, we know that it is not as much fun as watching the evening news that has news about your favorite stock. Any employer-sponsored retirement plan or employer’s matching contribution earlier mentioned 401(k) is an undisputed one.
Investing in the share market is not the only way to double your money. There are also a lot of financial schemes provided by genuine and trustworthy financial companies. Yes, it takes longer. The best way to double your money is to invest it in yourself. Learn new skills with the most perfection, work on them, and implement them. Keep in mind that when you are investing in yourself, it will definitely pay back within a year or more than that. It means you will never lose your money. This is how you will learn—the first suggestion of how to double your money.
It is essential to invest in those things that you know about. Do not risk your money with your unknown or insufficient skills, such as schemes that promise quick returns like ‘invest $100, make $1,000 a day.’ By avoiding those things that are unknown to you, you can manage your risks and make informed investment decisions. In case you want to invest in the stock market or real estate, first educate yourself. Gather as much knowledge as you can and study the market trends and opportunities. It is crucial to understand the fundamentals and potential risks involved in each investment.