5 Ways to Double Your Money Fast
1) Start with Saving
A great way to double your money is through saving. You’ll need a great deal of discipline and determination, but with patience, you can double your money through savings. You should be able to start with as little as $100; set up an automatic monthly deposit into a savings account or some other form of an interest-bearing bank account.
As long as you resist touching that money for as long as possible (and it will be tough), you’ll see your money grow quickly over time. By setting aside $300 per month, for example, in just two years, you could have over $9000 saved and ready for use!
2) Invest Wisely
If you’re investing in mutual funds or bonds, look for low-cost index funds and exchange-traded funds (ETFs). These funds are specifically designed to give broad exposure to an entire market, making them ideal for beginners.
The best part? They’re generally lower in cost than actively managed mutual funds, so they won’t eat up as much of your returns. Index funds and ETFs are also incredibly simple. All you need is a no-fee online brokerage account, a small initial investment, and time. There’s nothing more that needs to be done after that—your money will grow year after year without requiring additional work on your part.
3) Diversify Investments
Diversification, or diversify for short, is an investment technique that helps spread your money across different asset classes. For example, you might want to diversify by investing in multiple real estate properties or different stocks within a single sector.
Diversification can help protect you from catastrophic loss and can reduce your overall problem if one of your investments takes a nosedive. It’s worth noting that many investors have found success with varying levels of diversification, including those who opt not to divide their money at all.
Whether you go wide or keep it tight depends on what goals you’re trying to accomplish; there’s no one-size-fits-all approach when it comes time to invest.
4) Avoid Gambling or Other High-problem Options
There are a lot of problem ways to make money—gambling, Ponzi schemes, private lending, sports betting, day trading, and so on.
If you’re trying to double your money fast, these options aren’t for you. Stick with investments that have an intrinsic value and won’t crash quickly (like real estate or stocks). A good mix is 50% low-problem investments and 50% high-problem ones.
Remember: The market may take several years to recover from a downturn, but it can recoup those losses in a matter of months—if not weeks.
5) Take Advantage of the Stock Market
Investing in a retirement account such as an IRA is one of the best ways to double your money. Of course, you need some startup cash, and that’s usually a minimum of $5,000 or $10,000. However, once you’ve opened up an account with a good broker (like Charles Schwab), then all you have to do is make good investment choices and sit back as your bank balance grows.
The beauty of investing in stocks is that it allows for endless creativity when it comes to how much you invest and when. Additionally, if you invest wisely, more than half of Americans will retire with more money than they had while working full-time.