How to Double your Money in a Day (24 Hours or Less in 2022!)

How to Double Your Money With Real Estate

One of the best ways to double your money is by investing in real estate. Nearly all real estate investments double in time because properties naturally appreciate in value.

There are five ways to double your money with real estate:

  1. Rent By Room

  2. Fix and Flip

  3. Short-Term Rentals

  4. Buy and Hold

  5. Use Property Investment Data

1. Rent By Room

If you’re renting out a residential property to tenants, you might consider renting out the property by the room—rather than renting the entire house to a single tenant. This is an excellent way to increase your cash flow and maximize your property’s return.

Some markets are well-suited for renting out individual rooms. The best markets are college towns and high-density urban areas, and these locations see a greater number of tenants seeking short-term leases, or where tenant turnover is higher.

The higher rent might turn off some tenants. You could make the rental more attractive by improving the property or offering utility-free living (these are good properties for installing solar panels.

2. Fix and Flip

A fix and flip is one of the best ways to generate high returns in real estate. It also enables you to generate a high return in a very short amount of time.

The hardest part about executing a fix and flip is finding ways to keep the renovation costs down. It’s best if you can learn how to do basic renovation work yourself—like flooring, painting, or landscaping.

You should only hire contractors to do highly specialized work, like roofing or plumbing. When you’re hiring a contractor, find a balance between best-quality and lowest cost. You don’t need to turn the home into a Bel-Air mansion—you only need to make it nice enough so that it sufficiently improves the value of the home.

3. Short-Term Rentals

Short-term rentals are often more lucrative than long-term rentals. Short-term rentals enable you to charge higher prices more frequently. This is especially true of vacation rentals.

It’s possible that a vacation rental can generate as much money in one week as a leased property can generate in one month. If you own a property in an ideal location, you can make a ton of money by renting it out to travelers.

The tricky part about short-term rentals is that you’ll have to do cleaning and repairs more frequently—and if you don’t carefully manage these costs, they can siphon quite a bit of your revenue.

As with doing a fix and flip, you’ll want to find a middle ground for hiring cleaning/repair services or property management services. A property management company might take between 10% and 25% of your revenue, but they’ll also perform the necessary advertising and administrative work that you need to keep your bookings high.

4. Buy and Hold

“Buy and hold” is the most traditional real estate investing strategy. You’ll buy a property and hold it for an extended period until it appreciates. Your profit will depend on how much your property appreciates.

The key to buying and holding is finding a property in an up-and-coming neighborhood, especially those undergoing redevelopment.

Buy and hold is a long-term investment strategy. You should prioritize this strategy if you’re trying to save for retirement and looking for steady and reliable returns. But it’s also a good diversification option for short-term investors—it’s safe to employ one or two buy and hold properties to counterbalance a string of fix and flips. Chris Nddie, Co-Owner & Marketing Director at ClothingRIC, suggests that “you can potentially double your money if you find a good rental property and keep it for a long time. You’d not only be able to earn monthly cash flow, but you’d also benefit from any real estate asset appreciation”.

5. Use Property Investment Data

Property investment data can help you make informed investment decisions. Investment data will give you insight on:

  • Pricing trends for national and local markets

  • The demographics and interests of homebuyers

  • Federal and state legislation that may affect the housing market

Keeping up with this data is an everyday task for real estate investors. Get in the habit of checking real estate news every day before you get the day started or go to sleep. You can study market trends on numerous websites, like Zillow.com or Realtor.com. Bookmark them and visit them often.

Additionally, you can use a real estate calculator to help you budget for your real estate investments.

Property investment data can give you the foresight to make wise investment decisions—and to double your money.

4 ideas to double your money

1. Invest in P2P loans

Thanks to the power of compound interest, P2P loans are one of the investments that offer some of the highest returns. We’ve talked about the power of compound interest on this blog before: just by setting aside a small amount every month consistently for several years, you can grow your wealth to unbelievable numbers (yes, even millions).

The other benefit of investing in P2P loans is that it is incredibly easy to set up and a great way to double your money online. By using a feature like Auto-Invest, you just need to deposit your money, set up your portfolio, and sit back while your money earns a 14% to 16% return on investment.

How long before your money will be doubled?

Check out the 72 rule to find out how long it’ll take you.

2. Invest in the stock market

The stock market is one of the most popular and oldest methods to grow your wealth. By investing regularly in the stock market, you’re diversifying your wealth and are exposing yourself to some of the largest companies in the world.

Having said that, you will need to do your research in order to pick the right index fund or ETF – or be willing to go DIY and pick your own stocks. Make sure you’re not paying high fees and are using a tax-advantaged account.

The main drawback from investing in the stock market is that your return may not get higher than 8%, the average return when investing long term, which means it could take a lot longer to double your money with investments.

3. Double your savings

If you’re willing to go a little extreme, you can also look into cutting back.

By cutting more of your expenses, you can effectively double your savings. This is a popular strategy for those who want to retire early: by cutting your spending, not only will you be doubling your savings rate, but since your spending will be lower you won’t need so much to retire on.

Look through your budget to see what you can cut out, and consider looking for ways to lower large expenses such as rent, insurance payments, car maintenance, etc. If you manage to double your savings rate, you’ll be able to invest a lot more money, which means you’ll double your money at a much faster rate.

4. Focus on increasing your income

If you’ve exhausted all other methods for doubling your money and don’t know where else to go, then it’s time to go back to the drawing board and look for ways to increase your income. Depending on your situation, this could mean various things: working harder at your job to get a promotion, starting a side hustle, negotiating your salary, or taking up gig work in your free time.

It doesn’t work for everyone and it’s definitely easier said than done. But you will know yourself if working on increasing your income is something that is worth pursuing.

Video

Who invented the Rule of 72?

The earliest known reference to the Rule of 72 comes from Luca Pacioli's 1494 book, "Summa de Arithmetica." This book went on to be used as an accounting textbook until the mid-1600s, granting Pacioli the title of the Father of Accounting.

What is the Best Way to Double Your Money?

Depending on your risk tolerance, the best way to double your money is through the stock market or real estate assets.

These asset classes are extremely reliable and have been proven to make you money over the long haul.

While these methods will require some patience to double your money – it’s well worth it.

How To Use the Rule of 72 To Estimate Returns

Let’s say you have an investment balance of $100,000, and you want to know how long it will take to get it to $200,000 without adding any more funds. With an estimated annual return of 7%, you’d divide 72 by 7 to see that your investment will double every 10.29 years. 

Here’s an example of other rates of return and how the Rule of 72 affects your investment:

Rate of Return Years it Takes to Double 1% 72 2% 36 3% 24 4% 18 5% 14.4 6% 12 7% 10.3 8% 9 9% 8 10% 7.2 11% 6.5 12% 6

However, the calculation isn’t foolproof. If you have a little more time and want a more accurate result, you can use the following logarithmic formula:

T = ln(2) / ln(1+r)

In this equation, “T” is the time for the investment to double, “ln” is the natural log function, and “r” is the compounded interest rate. 

So, to use this formula for the $100,000 investment mentioned above, with a 6% rate of return, you can determine that your money will double in 11.9 years, which is close to the 12 years you'd get if you simply divided 72 by 6. 

Here's how the logarithmic formula looks in this case: 

T = ln(2) / ln(1+.06)

If you don’t have a scientific calculator on hand, you can usually use the one on your smartphone for advanced functions. However, the basic calculation can give you a good ballpark figure if that’s all you need.

2. Invest in an SP 500 index fund

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.

The S&P 500 also has an attractive long-term return, averaging about 10 percent annually over long periods. 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. And the S&P 500 can go through long losing streaks too. For example, the index had a negative return during the 2000s. The S&P 500 made up for it in the 2010s, returning 252 percent – more than tripling.

It’s easy to buy an S&P 500 index fund and you don’t need a lot of expertise to invest this way.

5. Trade options

Trading options is one of the fastest ways to double your money – or lose it all. Options can be lucrative but also quite risky. But to double your money with them, you’ll need to take some risk.

The biggest upsides (and downsides) in options occur when you buy either call options or put options. You could make two, three or four times your money or more. Here’s a quick overview of the two major kinds:

  • A call option gives you the right, but not the obligation, to purchase a stock at a specific price by a specific date, at the option’s expiration.
  • A put option gives you the right, but not the obligation, to sell a stock at a specific price by a specific time, at the option’s expiration.

You’ll pay a price to own an option contract, and that premium could increase many times in value. The downside is that the option could expire completely worthless. So you won’t want to risk all your money on the single throw of the options dice.

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.

What Can I Invest In to Double My Money?

People who have traditional jobs can invest in their companies’ 401(k) plans to double their money. With a 100% company match, you can easily double your money instantly. All you have to do is contribute up to the match amount.

Let’s say the plan matches 5% of your salary if you contribute that much each pay period. You earn $45,000 a year. Five percent of that equals $2,250.

Your company contributes another $2,250 for you. You’ve already doubled your investment! That doesn’t consider any returns you make on your portfolio, which can include bonds, mutual funds, and stocks.

Some conservative investments you can double your money in are treasury bonds. The bonds can be sold at a discount, meaning you pay $25 for a $50 bond. In 30 years, you’ll get the face value plus interest.         

How to Double $10k Quickly

If you have $10k to invest and want some quick returns, investing in websites might be your best option.

For example, my personal finance website now makes thousands of dollars each month in passive income.

You can purchase a website from sites like Flippa or EmpireFlippers to start making money online.

Can an Investor Use All Five Ways in the Quest to Double Ones Money?

Yes, of course. If your employer matches contributions to your retirement plan, take advantage of that perk. Invest in a diversified portfolio of stocks and bonds and consider being a contrarian when the market plunges or rockets higher. If you have the risk appetite and want some sizzle on your steak, allocate a small portion of your portfolio to more aggressive strategies and investments (after doing your research and due diligence, of course). Save on a regular basis to buy a house and keep the down payment in a savings account or other relatively risk-free investment.

Five Ways to Double Your Money

Doubling your money is actually a realistic goal that most investors can strive toward and is not as daunting a prospect as it may seem initially for a new investor. There are a few caveats, however:

  • Be very honest with yourself (and your investment advisor, if you have one) about your risk tolerance; finding out you don't have the stomach for volatility when the market plunges 20% is the worst possible time to make this discovery and may prove very detrimental to your financial well-being.
  • Don't let the two emotions that drive most investors—greed and fear—have an adverse impact on your investment decisions.
  • Be extremely wary about get-rich-quick schemes that promise you "guaranteed" sky-high results with minimal risk, because there's no such thing. Because there are probably many more investment scams out there than there are sure bets, be suspicious whenever you're promised results that appear too good to be true. Whether it's your broker, your brother-in-law, or a late-night infomercial, take the time to make sure that someone is not using you to double their money.

Broadly speaking, there are five ways to double your money. The method you choose depends largely on your appetite for risk and your timeline for investing. You may also consider adopting a mix of these strategies to achieve your goal of doubling your money.

When to Use the Rule of 72

So now you’re wondering when to use the Rule of 72. There are so many scenarios where this easy formula can help you—from planning for the future and evaluating an investment to understanding the impact of debt. 

To Plan for Financial Goals

Like the example above, you can use the Rule of 72 to determine when you will be able to make a big future purchase, like a house. But, it also can be useful for a lot of other financial goals you have.

If you have financial goals where you want to know how long it will be until you meet them, or you want to know what interest rate you need in order to reach your 5 or 10-year goals, then use the Rule of 72. 

For instance, if you need $100,000 to pay for your kid’s college in 10 years, and you start with $50,000, then you’ll need a 7.2% (72 / 10)  annual rate of return on your investment. 

But, if you start with $15,000, you’ll need your money to double 3 times in the next 10 years. This means you’ll want your money to double every 3.3 years and with a 21.8% (72 / 3.3) annual rate of return on your investment.

If you are investing for retirement, the Rule of 72 can be extremely beneficial. The amount of money you will need for retirement is a big number, but if you start early, even a small amount of money can double over and over again. 

The Rule of 72 will tell you: The less time you have until you retire, the larger the annual rate of return you will need on your investments. ON the other hand – if you have a long time until you plan to retire, you may be able to aim for a smaller annual rate of return. 

To Evaluate Investments

To Evaluate Investments

You can also use the Rule of 72 to evaluate your investments. Of course, this is how I use it most. 

If I’m comparing two potential investments and one will give me an 18% average annual rate of return, and the other is 14%, then I will double my money a year sooner if I go with the investment that could produce an 18% annual rate of return on average. 

If I leave the investment alone for 15 years, the first option will nearly double almost 4 separate times, while the second option will have only doubled 3 times.    

To Better Understand Debt

Just as compound interest works for you when you have money invested, it will also work against you when you have debt. 

Say you have credit card debt with an annual interest rate of 20%. Even if you make the minimum monthly payments on that card and don’t spend anything else, the amount you owe will double in 3 and a half years. Yikes. 

So, if you have debt, the Rule of 72 will hopefully light a fire under you to get rid of it as quickly as possible. 

About Phil Town

Phil is a hedge fund manager and author of 3 New York Times best-selling investment books, Invested, Rule #1, and Payback Time. He was taught how to invest using Rule #1 strategy when he was a Grand Canyon river guide in the 80’s, after a tour group member shared his formula for successful investing. Phil has a passion educating others, and has given thousands of people the confidence to start investing and retire comfortably. Learn more about Phil

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