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There is nothing more satisfying that telling your friends and colleagues that you were able to double your investments. Saying that you increased your earnings by 90% doesn’t quite seem to roll off the tongue as effectively.
It’s thrilling to know that you actually benefit from something that you put money into. Our risk taking side loves a quick buck and out aesthetically driven side perhaps just likes to see lots of zeroes.
Since quite a few people seem to get so happy at the thought of doubling their earnings, now you know it is possible and realistic. Investors goals should always to be to increase their money as much as possible. However, some there are warning signs to watch out for are so that you won’t make impulsive investment mistakes in the process.
To keep from making devastating mistakes, here are some right and wrong ways to accumulate earnings in the shortest amount of time.
#1) Take Your Time
OK, taking your time in investments doesn’t seem like the most time-effective way to make more money, but hear me out. You have to earn your money to make it right? And as the popular saying goes, “Good things come to those who wait.”
One of the best ways to increase your income over a short period of time is to invest in a strong, non-speculative portfolio that is both diversified and falls somewhere between blue-chip stocks and investment bonds.
With the rule of 72, your portfolio will surely increase in a desire amount of time. The rule of 72, consist of a shortcut for calculating how long it will take for your investment to double if it’s growth compounds on itself.
#2) Buy When the Time Seems Right
Everyone goes through a slump. Just like athletes go through a slump when their fans turn their backs on them, companies go through the same things. In this case, it is a good idea to go ahead and buy.
When everyone seems to be running for the hills, use this time to buy investments that have become oversold, only if you do your homework. In no way, does this mean to purchase garbage, but if you know what you are doing then your stock will increase.
Look at the price-to-earnings ratio when trying to decide whether to buy or not. When companies fail below historical averages, intelligent investors will find an opportunity to increase their profits.
#3) Safety First
There are fast ways, then there are slow ways to invest your money. If you live in fear of investing, then bonds are probably the way to go, which doesn’t necessarily mean that you can’t enjoy your earnings in the end.
Zero-coupon bonds can keep you in the doubling up running. Zero –coupon bonds are simple in that instead of buying a bond that rewards you with regular interest payment, you simply purchase a bond at a discount until it reaches it’s maturity level.
Instead of paying $1,000 for a $5% yearly increase, you can buy that same $1,000 bond that pays back $500 in a short amount of time. There is no reinvestment risk or hassle of attempting to invest in a smaller interest rate payment or risk of falling interest rates.
#4) Seeing Double
The foolproof way of doubling our money is to simply try the matching contribution option, where you’ll receive money in your employer’s retirement plan. The best bet is that you earn 50 cents for every $1.00 that you deposit.
The money also goes into your 401k or other employee documents that the IRS receives. This means that for every 75 cents that Americans have taken out of their paycheck, $1.50 goes into their retirement plan.
The government also matches a portion of your earnings if your workplace doesn’t offer 401k’s or other retirement plans.
With all the investment plans out there it’s difficult to know which way to turn. With the right advice and avoidance of any investment firm that “promises results”, you’ll be well on your way to financial freedom in no time.
Everyone wants to be worry free when it comes to their money. How do you save and plan so that you can earn money for the future? What is some advice that you would give those who are looking to double their earnings? Let’s hear your stories!
Sometimes I think people get too rushed when going into something like this. They see the big dollar signs and forget everything that their natural instinct tries to tell them.