Hey friend,
This is important.
I got this question from a reader:
"Fiona, where can I put $10k to double my money? And how long will it take?"
Great questions.
Let’s break them down:
5 Ways to Double Your Money
Everyone knows that investing is how you get rich.
In fact, if you invested $100k in Nvidia in April 2023…
Your investment would be worth ~$300k 12 months later.
So if you want to double, or even triple your money, you’ll have to take calculated risks.
As the saying goes, “No risk, no gain.”
Here are 5 more ways to double your money:
1. The Best Way
The best investment you can make is in yourself.
Why?
Because your return could be 10x the amount that you invested.
How to invest in yourself:
- Read books
- Take courses
- Listen to podcasts
The more you learn, the more you earn.
How can you double your money by investing yourself?
Here’s the process:
- Invest in a course, for example, Income Multiplier
- Study lessons 3.2 to 3.5 on how to start a side hustle
- Launch your side hustle
- Start collecting your side hustle income
- Continue working and building your side hustle
If you’re selling a service like consulting, you 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.
To be above average, do what the average won’t do.
2. 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, you could expect to double your money in just over seven years.
Source: Google Finance S&P 500
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.
Even Warren Buffett (the 5th richest person in the world) recommends investing in index funds.
Here’s the process:
- Research your index funds
- Decide which index fund to invest in
- Decide where to buy your index fund
- Determine your index fund investment type
And if you don’t have an investment account yet, consider using Robinhood.
It’s free to open an account with Robinhood and new members get 1 free stock.
3. The Classic Way
Investing in individual stocks is one of the fastest ways to double your money.
In fact, as of April 2024, if you invested $10,000 in Rolls Royce Holdings 6 months ago, you’d now 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.
However, we do have the next best thing:
Seeking Alpha is my go-to tool for stock market news and data.
And right now, they have a special offer, plus a 7-day FREE trial.
How can you double your money with stocks?
Here’s the process:
- Understand stock market basics
- Create an investment budget
- Determine your risk tolerance
- Develop an investment strategy
- Get expert advice in picking the right stocks
- Buy and hold your stocks for the long term
- Use an effective tax strategy
You don’t need a degree in investment management to buy stocks.
But keep in mind, that investing in stocks is risky.
So always do your research before you invest.
4. The Risky Way
Bitcoin is one of the best-performing assets of the decade.
It’s helped many investors double their money.
But many investors have lost money as well.
For example, if you bought Bitcoin in December 2023, you would have doubled your money only 12 months later.
Source: Google Finance
But as you can see, Bitcoin prices are volatile.
So if you have a high degree of risk tolerance, Bitcoin might be for you.
How can you double your money with Bitcoin?
There are many ways to invest in Bitcoin.
You could do Bitcoin mining or Bitcoin trading.
But the most popular strategy is to buy and hold Bitcoin for the long term.
Aka “HODL” which means “hold on for dear life.”
Here’s the process:
- Join an exchange (I use Kraken)
- Create your profile
- Link your bank account
- Place your Bitcoin order
- Store your Bitcoin
- Oversee your Bitcoin investment
Keep in mind, that Bitcoin is volatile and there is no guarantee that it will keep going up in value.
So always do your research before you invest.
5. The Traditional Way
Real estate is another traditional way to build wealth.
And you can double your money quickly during a real estate boom like in 2021.
But the current high-interest rate environment is not ideal.
So the gains from real estate can be slow and steady.
How can you double your money in real estate?
There are several ways to invest in real estate.
You could buy and hold, fix and flip, or invest in a REIT.
Another popular way is to use crowdfunding platforms like Arrived.
Arrived lets you buy shares of rental real estate for as little as $100 without managing the property itself.
Here’s the process:
- Sign up to Arrived (it’s free to join)
- Choose your portfolio strategy
- Fund your account
- Place your investment
- Collect your dividends
- Stay invested for the long-term
Investing in real estate is simple with platforms like Arrived.
But keep in mind that real estate is an illiquid investment, so your money can be locked up for up to 5+ years.
How Long Does it Take to Double Your Money?
Investing can make you incredibly wealthy.
How do you know when your money will double in value?
By using a powerful formula called: The Rule of 72.
Here’s how it works:
You 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 your money to double.
Check it out:
Source: Visual Capitalist
Here’s another example:
Let’s say you invest $10,000 in a rare art painting.
And that painting averages returns of around 17.8% per year.
So according to the Rule of 72, you would double your money in 4 years.
72 ÷ 17.8 = 4.044 years!
Closing Thoughts
If you want to double your money, you’ll have to take calculated risks.
You won’t double your money if you have cash sitting idle.
Start today.
Use the power of compound interest.
And always do your research before you invest.
Your bank account will thank me later.
That’s all for now!
Your friend,
Fiona
PS: When you’re ready, here’s how I can help you…
• Read my best-selling books
• Take my best-selling courses
• Join the Modern Wealth newsletter (100% free)
