How to Double Our Money...

How to Double Our Money

4 minute read

(At the end there is a good formula to help with calculation, The Rule of 72)

Its’s true that investing is the path to wealth.

So if we want to double, or even triple our money, we'll have to take calculated risks.

As the saying goes, "No risk, no reward."

Here are 4 more ways to double our money:

1. The Best Way

The best investment we can make is in our self.

Why?

Because the return we’ll get will be 10x the amount of money that we invested.

How to invest in our self:

• Read books

• Take courses

• Go to networking events

• Listen to podcasts

The more we learn, the more we earn.

How can you double your money by investing in yourself?

If we can sell a service like consulting, we should be able to earn an extra $1k to $2k per month.

Is this easier said than done?

Yes. But if it was easy, everyone would do it.

2. The Classic Way

Investing in individual stocks is one of the fastest ways to double our money.

In fact, if we invested $10,000 in Rolls Royce Holdings 6 months ago, we'd now roughly have over $21,000.

But, we don't have a crystal ball.

So no one knows when the next stock will go up or down.

How can we double our money with stocks?

Here's the process:

1. Understand stock market basics

2. Create an investment budget

3. Determine our risk tolerance

4. Buy and hold your stocks for the long term

5. Use an effective tax strategy

We don't need a degree in investment management to buy stocks.

But keep in mind, that investing in stocks is risky.

So always do research before investing.

3. The Standard Way

Investing in index funds like the S&P 500 might not be the most exciting investment...

But it's the most reliable investment for those looking to double their money.

In fact, the S&P 500 has returned about 10% per year on average.

At a 10% annual return, we could expect to double your money in just over seven years.

That said, the S&P 500 can have losing streaks too.

So the return from any single year could be higher or lower than the average.

How can you double your money with index funds?

Investing in index funds is simple.

Here's the process:

1. Research index funds

2. Decide which index fund to invest in

3. Decide where to buy the index fund

Use investment account like Interactive brokers, Robinhood, or just search online brokers.

It's free to open an account, and some times a person can get 1 free stock

4. The Traditional Way

Real estate is another traditional way to build wealth.

And we could double our money quickly during a real estate boom like in 2021 & 2022.

But the current high-interest rate environment is not ideal.

So the gains from real estate can be slow and steady.

How can we double our money in real estate?

There are several ways to invest in real estate.

We could buy and hold, fix and flip, or invest in a REIT.

But keep in mind that real estate is an illiquid investment, so our money can be locked up for up to 5+ years.

Always make sure to do research before investing.

How Long Does it Take to Double Money?

Investing makes many people wealthy.

How do we know when our money will double in value?

By using a powerful formula called: The Rule of 72.

Here's how it works:

Take the number 72 and divide it by the investment's projected annual return.

The result is the number of years that it'll take for our money to double.

Here's an example:

Let's say we invest $10,000 in a rare art painting.

And that painting averages returns of around 24%-26% per year.

So according to the Rule of 72, we would double our money in roughly 3 years.

72 ÷ 24 = 3 years!

In Closing

If we want to double our money, we'll have to take calculated risks.

We won't double our money if we have cash sitting idle.

And always do research before investing.

Thanks, and until next time

-Stefan