With traditional savings accounts, for example, your opportunities for growing your cash are limited (the average APY is a mere 0.42% right now). Maybe you’re nearing retirement, or you need to cover unexpected costs or medical expenses. It could also be that your salary hasn’t kept up with inflation or the higher consumer prices we’re dealing with in today’s economy. Whatever it is, there are ways to do it — and even double your money, in some cases. As an example, let’s say you invest $6,000 per year at a 7% rate of return.
- Not only could you generate monthly cash flow, you’d also benefit from any appreciation of your real estate asset.
- You’ll have to plan carefully, choose your investments wisely, and keep an eye on your portfolio.
- An investor who held an investment like the SPDR S&P 500 ETF (SPY) over these three years would have seen it double in value.
- The findings hold true for fractional results, as all decimals represent an additional portion of a year.
How can I double my money without risk?
Taking $100 and turning it into $200 with any level of consistency is a recipe for wealth. If you want to double your money, you don’t have to get lucky in Vegas or win the lottery. There are better, more consistent and proven ways to boost your bank account by 100%.
Ways to Double Your Money
Check savings account rates here now to see what you could be earning. If there’s a downside, it’s that some companies do require you to remain employed for a certain period of time, often three or four years, before those matching funds are fully vested. Below are five possible ways to double your money, ranging from the entry to adjust the accounts for salaries the low risk to the highly speculative. The offers that appear on this site are from companies that compensate us. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you.
How Long Does It Take to Double Your Money?
Although bond interest rates are near all-time lows, there’s one U.S. government-backed bond that stands out because of its promise to double your money. If held for at least a beginner’s guide to business expense categories 20 years, the series EE savings bonds will double your invested money. Aside from that one-time doubling, they earn a tiny interest rate — which is currently a mere 0.1%.
That means that, on average, you’ll be able to double your money in just over seven years. That said, the return in any single year is likely to be much different – higher or lower – than the average. The S&P 500 made up for it in the 2010s, returning 252 percent – more than tripling. An index fund based on the Standard & Poor’s 500 index is one of the more attractive ways to double your money. While investing in a stock fund is riskier than a bank CD or bonds, it’s less risky than investing in a few individual stocks. Plus, the S&P 500 is composed of about 500 of America’s largest and most profitable firms, so it’s a strong option for long-term investing.
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. Any estimates based on past performance do not a guarantee future performance, and prior to making any investment you should discuss your specific investment needs or seek advice from a qualified professional.
For example, if you earn an 8 percent annual return, it will take about 9 years to double. Even with interest rates higher than past years, it’s hard to use a bank account https://www.quick-bookkeeping.net/ to make a significant amount of money. In order for investors to double, or even triple their money, they’ll often have to take on some risk for that potential reward.
This increased volatility or risk is the price that an investor pays for the allure of higher returns. You can roll the dice on one of the numerous former blue-chip companies that have sunk to less than a dollar. Or, you can sink some money into a company that looks like the next big thing. Just keep in mind that the low prices of these stocks reflect the sentiment of most investors. Although slow and steady might work for some investors, others find themselves falling asleep at the wheel.
The right strategy for doubling your money depends on how quickly you need to do it, as well as your appetite for risk. If you’re willing to take on more risk, you have the opportunity for more growth in a shorter timeframe. SmartAsset Advisors, LLC (“SmartAsset”), a wholly owned subsidiary of Financial Insight Technology, is registered with the U.S. Bankrate.com is an independent, advertising-supported publisher and comparison service.
Compound interest will always double your money given enough time. The challenge, right now, is finding the proper vehicle for compounding your money. Savings accounts yield practically nothing, and CDs aren’t much better. Investing in securities historically produces much better returns over time than steady interest-bearing accounts, with the disadvantage of increased volatility.
The method you choose depends largely on your appetite for risk and your time line for investing. You may also consider adopting a mix of these strategies to achieve your goal of doubling your money. Investing https://www.quick-bookkeeping.net/accounts-payable-duplicate-payment-audits/ in real estate offers multiple ways of doubling your money. The big advantage of investing in real estate is the easy access to low-interest leverage through mortgage or other real estate loans.
If you add your all of your contributions over 10 years, you would have saved $60,000. However, using SmartAsset’s investment return calculator, you will see that you can make roughly $34,700 through compound interest. And increasing your contributions over time can help you reach a bigger investment goal sooner.
With that in mind, these four proven ways to double your money may be able to get you on track to get there faster. Growth stocks are a great way to not only double your money, but potentially triple or quadruple it, or more. Growth stocks sometimes can be more volatile and risky, though, and they’re often trading at rather lofty levels. So approach them carefully, and aim to buy the ones that seem the most undervalued while offering a lot of potential.