9 Safest Ways to Double Your Money in 24 Hours

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Trade cryptocurrency

401(k) matches may be a dollar-for-dollar match up to a certain percentage of your salary, so it’s literally doubling your money. Even if your employer only offers a 50% match, it’s one of the best returns on investment you’ll ever get. If you need to double your money on a fairly quick timeline, old standards like savings accounts or buying real estate likely aren’t going to do it https://www.quick-bookkeeping.net/daily-cash-receipts-journal/ for you. The Rule of 72 can help you determine what types of investments or financial products can help you achieve your goal. If you need to double your financial investment in 10 years, a savings account with a 5% interest rate, for instance, wouldn’t help achieve your goals. You’d need something with a higher rate of return (at least 7.2%) to make that 10-year milestone happen.

Invest in an S&P 500 index fund

Follow our Motley Fool investing philosophy and you’ll buy 25 or more stocks, while aiming to hold them for at least five years. Doing so should give you a decent chance of having one outstanding performer (or many) and having your winners far offset your losers. Few of https://www.quick-bookkeeping.net/ us have saved enough for retirement, so most of us should be actively saving and investing for the future. Ideally, we will double however much we have saved by now, and then double it again and again. The first step is to know how quickly you need to double your money.

No. 1: Get enough time in the stock market

Hence, adding 1 (for the 3 points higher than 8%) to 72 leads to using the rule of 73 for higher precision. For a 14% rate of return, it would be the rule of 74 (adding 2 for 6 percentage points higher), and for a 5% rate of return, it will mean reducing 1 (for 3 percentage points lower) to lead to the rule of 71. The rule of 72 primarily works with interest rates or rates of return that fall in the range of 6% and 10%. When dealing with rates outside this range, the rule can be adjusted by adding or subtracting 1 from 72 for every 3 points the interest rate diverges from the 8% threshold. For example, the rate of 11% annual compounding interest is 3 percentage points higher than 8%.

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.

While day trading or investing in stocks may be legitimate ways to earn cash, there are many other, generally safer ways to earn income which are discussed in this article. You take the number 72 and divide it by the investment’s projected annual return. The result is the number of years, approximately, it’ll take for your money to double. Just as an investment advisor can offer you tips for investing in stocks and bonds, they should also be able to provide guidance regarding your alternative investment options. Of course, doubling your money is usually easier said than done. At minimum, you need a combination of time and a decent strategy, and it often helps to have a boost from your boss and Uncle Sam as well.

You’ll have to plan carefully, choose your investments wisely, and keep an eye on your portfolio. The Rule of 72 is a well-known shortcut for calculating how long it will take for an investment to double if its growth compounds annually. The result is the number cash vs accrual accounting: whats the difference of years that it will take to double your money. “Doubling your money requires a balanced and disciplined approach to investing, focusing on diversified, long-term strategies,” says Joseph Catanzaro, a financial advisor at Oak & Stone Capital Advisors.

1. Although your investment growth will likely be slow over the first few years, you should see a steep rise in growth after that, provided you’ve invested wisely.
2. When you invest in a traditional-style 401(k) plan, you get an immediate tax deduction based on the amount of your marginal tax rate.
3. Noel is the founder and main contributor for his blog – Noel’s passion for personal finance has helped him amass over 600k readers to his Financial Geek blog.
4. 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.
5. Just as the fast lane and the slow lane on the highway will eventually get you to the same place, there are quick and slow ways to double your money.
6. Or, you can sink some money into a company that looks like the next big thing.

The strategies below tend to take longer, but they can be effective if you say the course. Traders also have the choice of lower-risk but less-lucrative options strategies, too. And while you’re at it, there’s no reason not to minimize your trading costs by going with a top broker. We are an independent, advertising-supported comparison service. The S&P 500 delivered a phenomenal total return of 100% in the three years from 2019 to 2021, despite plunging 35% within a six-week period in February and March of 2020.

That’s a great way to double your money far faster than virtually any other means can get you there. If you put $1,000 into your Traditional 401(k) and receive a 50% match, that’s a total of $1,500 going into your account. If you’re cost recovery method of revenue recognition in that 25% combined marginal tax bracket, your $1,000 contribution represents only $750 of otherwise spendable cash. Amy Fontinelle has more than 15 years of experience covering personal finance, corporate finance and investing.

The only caveat is that your 401(k) is designated for retirement. As such, there can be steep penalties for withdrawing before you reach retirement age. So, if you need to double your money and get access to it quickly, the 401(k) isn’t your best option. You can also list items that you no longer use or may have in storage. Even with seller fees, it is certainly possible (but not easy) to earn over $2,000 in one day when listing more expensive items.