How can you double $10,000 quickly?
You will have to take on extra risk if you’re looking to double $10,000 quickly. Typically, the faster you want returns, the more risk is associated with the investment. You can double your money through swing trading, cryptocurrency, product reselling, real estate, business, IPOs, and finding more clients.
Imagine, turning $10,000 into $20,000 in one month. If you can double your money, you can easily turn $10k into $100k.
Doubling your money is possible, but very risky.
Luckily for you, I’m going to show you some of the ways you can double your money. I’ll even show you how potential reward is affected by the risk you have to take. At the end of this article, you’ll be able to figure out a way to double or triple your money.
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Risk vs. Return
Typically, the faster you want to double your money, the riskier the investment. Fast returns are appealing to investors, but you are more likely to lose your entire investment. Therefore, you need to find an investment approach that balances risk and reward for doubling your money.
The key takeaway is that you aren’t gambling with your money. Instead, you need to fully understand your investment, the potential risk, and determine if you are willing to take the risk.
For example, anyone can go to the casino and place their money on black at the roulette table. However, there is a near 50% chance you’ll lose your money and a near 50% chance you’ll double it.
As an investor, you want to minimize the chances of losing your money. Technically, you can make a quick buck at the gaming tables, if you’re lucky. Although, I’d like to think we’re a little bit smarter and want to minimize our potential downside.
A safe investor might invest their money into low-cost index funds. The investor knows that they will double their money in a matter of 7 to 10 years. They are patient, but they know they have little risk when it comes to doubling their money.
Remember, the number one rule when it comes to investing is to not lose money. Don’t place your money into anything that’s going to cause you to lose.Click to Tweet! Please Share!Click To Tweet
How to double 10k quickly
In order to double $10,000 quickly, you will have to take on additional risk. Doubling your money quickly it’s not an easy task and requires more volatile investments. Strategies you can use to double your money include swing trading, cryptocurrency, product reselling, real estate, starting a business, IPOs, and finding new clients.
Let’s take a look at some of the best ways to double your money quickly.
Swing Trading is a hard skill to learn, but it can be very profitable when done right. You can double your money anywhere from a couple days to a year. As a swing trader, you purchase stocks that have recently taken a hit and wait for them to recover.
For example, let’s assume Facebook is currently trading at $100 per share. The company received some bad news which caused the price to drop all the way to $60 per share.
You know that the bad news is only temporary. Facebook is still a quality company and they’re not going bankrupt anytime soon. Now is your chance to buy Facebook stock at a premium discount.
Let’s assume that you purchased $10,000 worth of Facebook stock at $60. Over the course of 5 months, the price gradually increases until it reaches its previous high of $100. You sell your shares and pocket a profit of $40 per share or $6,666!
As of lately, cryptocurrency has been making millionaires out of everyday investors. Cryptocurrency is gaining in popularity and may become a major portion of society. However, cryptocurrency is still relatively new and it may just be a passing fad.
For example, you could have purchased Dogecoin when it was $0.002 per coin. Assuming you sold when Dogecoin hit $0.70, you would have earned $0.698 per coin. A $1,000 investment would have made you $350,000!
The future of Dogecoin is still unknown. If companies like PayPal and Square implement Dogecoin as a major payment option, then Dogecoin could go even higher. Alternatively, Dogecoin could be passed up by something else and be a worthless coin.
The major takeaway is that the people who invested early made the most amount of money. You can make a lot of money by being the first to an investment.
Amazon or Ebay reselling
Another way to double your money quickly is to resell products on Amazon or Ebay. You can shop the clearance items at your favorite retailers and find good selling items to resell. Purchase these items and list them on Amazon or Ebay for a profit.
For example, you can go to Walmart and check clearance items. You find an item that is selling on clearance for $10. You scan the barcode and can see the same item is selling on Amazon for $20.
Even better, Walmart has 10 of these items on clearance. You purchase all 10 of these items and list them for sale on Amazon.
Amazon will take a portion of your profits because they’re going to charge a fee. Assuming you make $8 profit per item, you can make $80 on this one find.
Not all items are going to be winners. However, Amazon has the ability to sell products very quickly. As someone who has sold on Amazon before, I am amazed at how quickly products can sell.
I have been able to double my money through Retail Arbitrage.
Flip items on Craigslist
Another way of flipping items is through Craigslist and Facebook Marketplace.You can find great deals on Craigslist, especially the free section. Pick up the items that you find on Craigslist and list them on Facebook Marketplace.
Flipping items from the free section of Craigslist is an immediate return on investment. All you are investing is your time and there is no money required. However, you can find other great deals on the other sections of Craigslist.
Real estate is a proven way of making money, but it has also created a lot of broke people. A lot of individuals have gone into real estate and never made a single cent. However, an investor who crunches the numbers and finds a good deal can make a lot of money.
Ideally, you have enough money to put down a down payment to avoid PMI. However, someone with a good credit score can borrow all the money they need from a bank. Therefore, you don’t need any money to purchase your first real estate deal.
However, let’s assume you invest $20,000 on a property worth $100,000. You can rent the property for $1,000 per month. Assuming $600 goes towards equity and cash flow, you’re earning $6000 per year.
Additionally, your property should appreciate or increase in value. typically, you can expect around 4% appreciation every single year. You can spruce up your property and increase its value as well.
Starting a business
Starting your own business is one of the most difficult, but profitable ways to build wealth. As a business owner, you are creating an additional stream of income with uncapped earning potential.
For example, maybe you want to start your own yard care company. You use your $10,000 to purchase equipment and get your first customers. Now, you have 40 customers paying $35 per week for lawn mowing.
Your new business is now earning $1,400 per week or $72,800 per year.
Buy Initial Public Offerings
Initial public offerings are companies that are new to the stock exchange. These companies have just gone public and need more cash to continue their growth. The share price of the company is extremely volatile and can lead to significant growth with the right company.
For example, Shopify went public for an initial price of $25 per share. Five years later, the share price was $825! A $1,000 investment at IPO price would have made you $33,000.
Advertise and gain clients
You can also spend your $10,000 to advertise your services. When you advertise your services, you can gain more customers. The more customers you have, the quicker you earn more money.
For example, you may be a freelance writer who is earning $35,000 per year. You want to scale your business and take on more clients. Your average client makes you $800 per month.
You spend some of your money and gain three new clients. At $800 per month average, you’re now earning an extra $2,400 per month.Click to Tweet! Please Share!Click To Tweet
How much time does it take to double your money?
Suppose you factor in compounding interest at an average rate of 10 percent. It will take approximately seven years to double your money if you invest in a traditional brokerage or retirement account. This calculation is based on the rule of 72, a formula that yields reasonably accurate predictions on how long it will take to double an investment based on compound interest rates that fall between six to 10 percent.
Of course, you can double your money faster, but your investments will also carry more risk.
The Rule of 72
To calculate the amount of time it will take to double your money on an investment that earns compound interest, try using the rule of 72.
This formula is easy to calculate mentally without detailed spreadsheets and fancy calculators. It works only when applied to compound interest situations, so don’t apply this formula to traditional interest because your calculations will be incorrect.
To apply the rule of 72, take the number 72 and divide it by your expected rate of return. The total from that calculation will equal the number of years it will take for your investment to double.
For example, if you invest $10,000 into a brokerage account with an average rate of return of 7 percent, the calculation looks like this:
72 / 7 = 10.3
This example above will take just over ten years to double your investment to $20,000.
However, if you look at the S&P 500 Index, most mutual funds have a historical rate of return of 10 percent, according to the U.S. Securities and Exchange Commission. In that case, the calculation would look like this:
72 / 10 = 7.2
So, if your investments follow the S&P 500, it would take just over seven years to double your investment of $10,000 to $20,000.
The rule of 72 calculation has nothing to do with the amount you invest and everything to do with the average rate of compound interest.
How to make 10k fast
The fastest way to make 10k is to save a percentage of your monthly income from your regular job, get a side hustle, and start selling things.
1. Save a percentage of your monthly income
If you have a regular job, the fastest way to make $10,000 to invest is to start saving a percentage of each paycheck.
You can set up automatic withdrawals that go directly into a savings account or move the money into a savings account through your online banking portal. Some people even choose to take cash out of an ATM and set that aside as their savings.
Experts recommend saving 20 percent of your monthly income every pay period. This follows the popular 50/30/20 rule, dividing your income into:
- 50 percent spent on necessities like food, rent, and transportation
- 30 percent spent on discretionary purchases like shopping, dates, exercise classes
- 20 percent to savings
For someone who earns $3,000 per month, this calculation would look like:
- Rent, food, transportation: $1,500
- Discretionary spending: $900
- Savings: $600
At this rate, it would take you approximately one year and four months to set aside $10,000 to invest.
2. Get a side hustle
If you’d like to save $10,000 faster than the above calculation, get a side hustle to start chipping away at your savings goal.
By simply waiting tables a couple of nights a week, writing freelance blogs online, or buying and flipping furniture on eBay or Craigslist, you can easily double your monthly contribution to your savings account.
Now, your calculation looks something more like this:
- Regular savings: $600
- Side hustle savings: $500
- Time to make 10k: 9 months
3. Sell stuff
Most people keep more stuff than they need around their houses. List it for sale if you have extra clothes, shoes, baskets, cooking utensils, or even loose bricks in your backyard!
You will be amazed at what people want to buy and how much money you can earn quickly through sites like eBay, Poshmark, Craigslist, and Facebook Marketplace.
Like financial expert Dave Ramsey says, “Sell so much stuff that the kids think they’re next!”
What is the best way to invest 10k and double it?
The best way to invest 10k and double it is to balance risk with reward, and mutual funds are a great way to do this.
By investing in mutual funds, your money is invested in stocks that have a historical rate of return of just about 10 percent. If you use The Rule of 72, you can calculate that it will take approximately seven years to double your money.
If you want to take a bit more risk with your 10k, consider investing in growth stocks. These stocks are riskier but have higher rates of return if they do well. Growth stocks are any stocks that are expected to grow at a higher rate than the market average of 10 percent.
How should I invest 10k wisely?
Invest 10k wisely by putting it into a balanced, diversified brokerage account or tax-advantaged retirement account such as a 401k or Roth IRA. With a Roth IRA, you’ll pay taxes upfront but won’t pay any taxes when you withdraw the money at retirement age.
By diversifying your portfolio between growth, large-cap, small-cap, and international mutual funds as opposed to individual stocks, you’re spreading your investment out to minimize risk. If one fund does poorly, another may outperform the market average. You win some, you lose some, but you don’t lose it all in the end.
Summary: How to double 10k quickly
As you can see, there are many ways to double $10,000 quickly. The faster you want to double your money, the riskier the investment typically is. Therefore, you should only invest in what you know and fully accept the risk of your investment.
Some of the best ways to double your money include:
- Swing Trading – Buy quality stocks when they’re down. Wait for them to recover.
- Cryptocurrency – The future of cryptocurrency is still indeterminate. Crypto might become a large part of society or worthless. The majority of people who got in early made the most money.
- Amazon or Ebay reselling – Buy clearance items and resell them online for profit.
- Craigslist flipping – Find items on craigslist and flip them on Facebook Marketplace.
- Real Estate – Buy a property and rent it out. Make money through rent payments, equity building, and home appreciation. Homes naturally appreciate, but you can fix the home up and force appreciation.
- Starting a business – Not all businesses are successful, but business ownership is the fastest way to build wealth.
- Initial public offerings – Companies who just went public are very volatile. Some companies are fueled for growth, but most companies will fail at this stage.
- Advertising for more clients – Use your money to advertise to find more clients. The more clients you have, the more money you can make.