If you would know the value of money, go and try to borrow some.
~ Benjamin Franklin
How to double your money? I’m going to show you an easy way that should work for most of you. However, before we get there I want to make the obvious caveat and disclaimer. I’m not a financial planner and anything suggested here is for entertainment purposes. You should consult a financial planner before investing any money. Also, as you know, investing is risky, you could lose all of your money and past returns bear not witness to future returns.
Great stuff. Here is how to double money fast.
This is how I invest most of my money at the moment. If you’re reading this in the future that might no longer be the case.
If I wanted to double my money in the shortest amount of time possible while still limiting risk as much as I felt comfortable I would invest in one or more of the dividend aristocrats. The dividend aristocrats are companies that have increased their dividend for at least 25 years in a row.
Check this book out if you are interested in learning in more depth about dividend investing.
You can find a current list of the dividend aristocrats at S&P 500s website.
One of the companies identified is 3M. These are huge names and are generally stalwarts in their industry and around the globe. Currently 3M trades at around $88 and offers a dividend of 2.5%. Not huge, but over the last few years they’ve increased their dividend by around 6.4% per year since 2001. Addtionally, 3M stock has delivered annualized returns of 8.6% over the past decade. Figures from mid 2011.
Those are pretty decent returns if you ask me.
At the annualized rate of 8.6% percent delivered by 3M over the past decade you would double your money in about 8.4 years based on the Rule of 72.
That’s what I would do if I wanted to know how to double money quickly. Some of you might think that 8.4 years is not quick. No, not particularly quick, but in my opinion it is one of the quickest ways to double your money while also being one of the safest.
Listen, a fool and his money are soon parted. This is especially true if you are looking to really double your money fast like in a week or a year or less. The risk compounds exponentially and you start to look more foolish.
How do you double your money in a week? There are many ways. You could enter a poker tournament and hope to win. You could buy some lottery tickets and hope to win. You could also bet it all on one number in roulette. If you had a friend that needed to borrow money you could tell him that he needed to pay back double within a week. This might work for small sums or for friends you don’t want anymore.
The thing is. If you are trying to double your money quickly you are likely facing huge risks. And unless you have the money to burn this is definitely not smart.
If you are in financial trouble, trying to double down or make back a quick buck will likely cause you more grief than it is worth.
My best advice to you is to start learning how to budget and how to invest wisely and intelligently. The Warren Buffet Stock Portfolio is a good one to start with to see how the world’s greatest investor buys and sells (seldom) stocks.
If you need more money, listen to Dave Ramsey for solid advice. Get a job delivering pizza or flyers or anything else that will tied you over. Just don’t make things worse for yourself by looking for quick fixes.
You can dig out of any hole if you are patient and prudent enough. You just need a plan, you need to work your plan and you need to stick to your plan. All that glitters is not gold my friend 🙂