Photo: Ann H

How can I double my money?

5 Ways to Double Your Money Take Advantage of 401(k) Matching. Invest in Value and Growth Stocks. Increase Your Contributions. Consider Alternative Investments. Be Patient.

smartasset.com - Strategies for How to Double Your Money - SmartAsset.com

What industry is booming in 2025?

As per PR Newswire, the IoT industry in India is estimated to grow at a CAGR of 13.2% from 2020 to 2025. Oct 21, 2022

Last updated May 30, 2018

Which zodiac is emotionally intelligent?

Aquarius People with this zodiac sign are headstrong who exactly know how to control their emotions in difficult situations. These beings can never...

Last updated May 23, 2019

Awaken your dormant DNA ability to attract wealth effortlessly

The simple yet scientifically proven Wealth DNA method laid out in the report allows you to effortlessly start attracting the wealth and abundance you deserve.

Learn More »

Promotion

Doubling your money isn’t something you should expect to do overnight. However, with the right approach, it’s possible to double your money over time. If you’re looking to double your money through investments, here are the five common strategies to consider. A financial advisor can help you create a financial plan for your investment needs and goals.

5 Ways to Double Your Money

There are many ways to double your money, but most of them take time. If someone you don’t know approaches you, promising you can double your money every year, you should be extremely skeptical. The strategies below tend to take longer, but they can be effective if you say the course. Do you have an employer-sponsored retirement plan, such as a 401(k)? If so, your employer might match your contributions 1:1 up to a percentage of your salary. That means that up to a point, your employer will match every dollar you contribute to the plan. For example, they might match your contributions up to 6% of your salary. So, if your base pay is $50,000, your employer will match your contributions up to $3,000. While doubling your money isn’t always easy, this is one of the quickest and easiest ways to see your money multiply.

2. Invest in Value and Growth Stocks

Understanding value and growth stocks can get a bit technical, but at their most basic level, both are stocks that can outperform the competition. Value stocks are stocks that are underpriced according to the fundamentals. Meanwhile, growth stocks are stocks that are growing more quickly than the market. Value stocks and growth stocks have the same basic appeal: both are stocks that have the potential to grow more quickly than the market. However, growth stocks are stocks that analysts feel have not fully realized their potential; they are often small- and mid-cap stocks. Conversely, value stocks are often large, established companies that appear to be trading at a price that undervalues them now.

3. Increase Your Contributions

How do you cleanse your body of smells?

But you can do a few things to make body odor go away. Keep Yourself Squeaky Clean. ... Use Antibacterial Soap. ... Towel Off Well. ... Use...

Last updated Oct 18, 2021

What are the 3 things in the Ark of the Covenant?

According to various biblical texts, there were three things in the ark, which are listed in this old text in Hebrews 9:4, "The ark of the covenant...

Last updated Aug 21, 2020

Awaken your dormant DNA ability to attract wealth effortlessly

The simple yet scientifically proven Wealth DNA method laid out in the report allows you to effortlessly start attracting the wealth and abundance you deserve.

Learn More »

Promotion

If you want to reliably grow your net worth, it might be necessary to simply increase your retirement contributions. As tantalizing as it is to imagine getting rich from nothing, it isn’t something most of us should expect. When you first start investing, it might seem like your money isn’t growing much, but often that is because your money hasn’t had enough to compound. As an example, let’s say you invest $6,000 per year at a 7% rate of return. 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.

4. Consider Alternative Investments

Broadly speaking, alternative investments are any investments that are not stocks, bonds or cash. Thus, alternative investments can include a variety of investments, such as private equity, real estate, commodities, collectibles and cryptocurrency. Alternative investments can be a double-edged sword. Some can be highly speculative, which might allow you to double your money more quickly with alternative investments. But their speculative nature also means you can lose money on them just as fast as you made it. Thus, without research, analysis, and perhaps a bit of luck, it probably won’t be easy to double your money with alternative investments.

5. Be Patient

You have probably heard that patience is a virtue, and the idea very much applies when you want to double your money. Building wealth takes time, and one of the most common mistakes people make is to get impatient when their money isn’t growing fast enough. But as the graph above shows, it’s not uncommon for your wealth to grow slowly in the first several years before it starts to grow quickly. The rule of 72 tells us that it takes over 10 years to double your money with a 7% return (72/7 = 10.28). Our example shows that you have about $78,000 after 10 years. But it only takes until around year 15 to have another $78,000. We make our next $78,000 inside of year 20. You see where this is going. People have a tendency to pull the plug on their investment strategy before the rapid gains begin to take hold. It’s critically important to be patient and give your strategy the time it needs.

What planet represents father?

The sun The sun, often associated with the father, and moon, often with the mother, are our two primary light sources in our charts, which are...

Last updated May 17, 2022

What is the oldest penny on earth?

What is this? The oldest penny in the world is the Birch Cent of 1792. The original was sold in 2015 to Kevin Lipton, a Beverly Hills rare coin...

Last updated May 9, 2021

Awaken your dormant DNA ability to attract wealth effortlessly

The simple yet scientifically proven Wealth DNA method laid out in the report allows you to effortlessly start attracting the wealth and abundance you deserve.

Learn More »

Promotion

Bottom Line

If you want to double your money, it’s important to commit to your strategy and let your money grow over time. In general, the more risk you are willing to assume, the faster you can double your money. But some of the most speculative investments may have a high chance of failure, so it’s a good idea to strike the right balance. For most investors, taking advantage of 401(k) matching and increasing retirement contributions are still the most reliable ways to see your money grow quickly.

Tips for Investing

Deciding how to allocate your portfolio isn’t always easy. A financial advisor can help you reach your investment goals. SmartAsset’s free tool matches you with up to three financial advisors who serve your area. Plus, you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now. Unsure how much your investments will grow over time? Try SmartAsset’s free investment calculator to estimate how much you will have in 10, 15 or 20 years. Whatever your time horizon might be, it’s important to know where you stand. If you want to see where you stand, use our free calculator.

Photo credit: ©iStock/Moyo Studio, ©iStock/kate_sept2004

smartasset.com - Strategies for How to Double Your Money - SmartAsset.com

What makes a woman beautiful physically?

Generally, men prefer women with full breasts, lips, symmetrical face, big smile, wider waist-hip ratio, healthy hair, high-pitched voice, clear...

Last updated Jan 15, 2020

What does lavender do to ants?

2. Lavender. Lavender may smell pleasant to humans but it's not so popular with ants, flies, moths, fleas and mosquitoes. A pot near your door can...

Last updated Nov 2, 2019

Awaken your dormant DNA ability to attract wealth effortlessly

The simple yet scientifically proven Wealth DNA method laid out in the report allows you to effortlessly start attracting the wealth and abundance you deserve.

Learn More »

Promotion

What color attracts luck?

Gold. According to Feng Shui principles, the colour gold can help manifest good luck and it also plays an important role in attracting money. Sep...

Last updated Apr 14, 2018

Awaken your dormant DNA ability to attract wealth effortlessly

The simple yet scientifically proven Wealth DNA method laid out in the report allows you to effortlessly start attracting the wealth and abundance you deserve.

Learn More »

Promotion

Do affirmations work if you just listen to them?

According to a recent study by the Society for Personality and Social Psychology, practicing affirmations—whether listening to pre-recordings or...

Last updated Jun 21, 2019