How to turn $50k into $100k quickly?
Turn $50k into $100k by investing in the right asset. IPOs, flipping or selling products, real estate investing, and swing trading can double your money quickly. You will spend more effort with these strategies, but they are faster than passive investing.
Imagine, turning $50k into $100k in one year or less. The first $100,000 is the hardest, but some people know how to earn it faster than others.
Doubling your money can be risky, but rewarding!
Luckily for you, I’ll show you simple strategies for doubling your $50k or turning $50k into a million. I’ll point out some of the risks, so you can make a decision on your best path forward. Put in the effort and you could be making more money!
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How to turn $50k into $100k quickly
Turn $50,000 into $100,000 quickly by finding the right investment. You can invest in an initial public offering, flip or sell products, real estate investing, and swing trading.These strategies can double your money quickly, but take more effort than passively investing.
Remember, trying to double your money quickly often carries substantial risk. You could safely invest in the S&P 500, but it’s going to take you a while to double your money. Alternatively, you could invest your $50,000 into a single stock that doubles overnight, which is more risky.
Your job is to find the investment vehicle that will help you double your money within your risk tolerance. You can make a lot of money very quickly, but you have to be smart and have a plan.Click to Tweet! Please Share!Click To Tweet
Invest in an IPO
Initial public offerings are when a company is officially listed on the stock market exchange. These companies are given a lot more money through this round of investing. Therefore, these companies often see rapid growth.
However, the initial public offering is often a sink or swim for most companies. A lot of companies go out of business after their initial public offering. Therefore, it is important to pick good quality companies that you believe will succeed.
For example, Shopify is one of the most successful initial public offerings I’ve seen in a long time. Shopify went public for an initial share price around $28. Two years later, Shopify had a share price around $85! Fast forward five years, Shopify was at a price of $825.
As you can see, Shopify was very successful. You could have invested $50,000 at the initial public offering, which would’ve turned into about 1.5 million dollars 5 years later.
However, not all initial public offerings go as well as Shopify. For example, Blue Apron went public with a share price of $140. The company’s share price is now worth $4, four years later.
Flip products on Amazon
Flipping products on Amazon is another good way to turn your $50,000 into $100,000 quickly. As an Amazon reseller, you are finding products at a discount and reselling them for higher online. You make money whenever someone buys the product you are selling.
The key to successful selling on Amazon is to know which products will sell well. You can literally find items on clearance that will double your money and sell incredibly fast on Amazon. However, you can also find products that you think will sell well, but sit unsold for months.
Start small and learn how to successfully sell on Amazon. Eventually, you’ll get an idea of what sells and what doesn’t. You can use the rest of your $50,000 once you’ve gotten the hang of online reselling.
You aren’t limited to strictly Amazon. In addition, you can sell on eBay. Both Amazon and eBay have seller apps where you can scan the barcode and estimate profitability.
Real Estate investing
Real estate investing can be very time-consuming, but it’s a good way to build your networth quickly. The key to successful real estate investing is being able to analyze which properties are with your time. You need to be able to find properties that are able to cash flow and cover your expenses.
For example, you might be able to find a property for $100,000. You have to pay around 20% to avoid PMI, an additional fee to your mortgage broker. This property might rent out for $800, with a monthly mortgage payment of $600.
The first thing you’re going to do is give the bank you’re 20% down to purchase the property. You are immediately investing 20% or $20,000. Once the property is yours, you are going to invest some money to fix the place up.
Let’s assume, you spend another $10,000 fixing the place and making it look more attractive. The value of your new rental property may increase by $30,000. Your property is now worth $130,000, purchased for $100,000, and you spent $30,000.
Properties typically appreciate at around 4% per year. Therefore, your property increases in value by $5,200. The total value of appreciation is now $35,200.
In addition, you are earning $200 per month in rental profit. Over the course of one year, you will earn $2,400.
At the end of your first year, you refinance your property with a cash out refinance. The bank adjusts your loan because of the increase in value, giving you money back. You now have $37,600 (from appreciation and rent) to invest into another property.
Develop and sell a digital product
Developing and selling your own digital product can be done for completely free. However, investing money can speed up the process if you know what you’re doing. You are setting up a sales system which will continue to sell your product over and over.
For example, you need to do market research and determine what product you want to sell. Let’s assume, you want to make a yoga course that people can download to their computer.
You find a freelancer who will make you a yoga course. Depending on the course contents, you could easily spend anywhere from $1,000 all the way up to your full $50,000. However, for the purpose of this example, let’s assume the course cost you $10,000.
You find that a typical yoga course will sell for around $40. Therefore, you need to sell 250 courses yourself to make back your initial investment. Alternatively, you could offer someone else a commission to sell your product.
You create an affiliate program that gives a 50% commission to anybody that sells your product for you. Now, you spend your time out reaching the content creators in the fitness niche. These creators promote your product and make sales for you.
Let’s assume, you managed to get 300 people to promote your course. All together, these Affiliates manage to sell 45 courses per month. You now have a $900 per month business and you didn’t have to sell anything.
Swing trading is when you buy a quality company that had a recent sell-off. Many times a company’s share price tanks due to poor market reactions. During selloffs, companies are often undervalued which means you can get the stock for cheap.
You can easily find swing trades that give you 30% return on investment. The biggest thing to consider is that you are confident you will get your capital returned. In other words, you aren’t investing in some unknown company that might be going bankrupt.
For example, you might notice shares of Facebook were trading at $200 per share. Unfortunate news might cause the share price of Facebook to temporarily drop to $160 per share.There was no real good reason for the price drop.
A smart investor would know that this sell-off is only temporary. You can make an easy 25% return on investment by purchasing the shares and waiting for the recovery.
Swing trading does take time. Your typical trade can be a few days all the way up to around a year.
What can you do with $50k to make money?
You can use $50,000 to make money through owning a business or making an investment. Starting your own business will take time and there is no guarantee of success. However, you need to make the right investment to guarantee profitability.
What is the best investment for $50k?
The best investment for $50,000 is in a low-cost index fund like the S&P 500. Companies like Vanguard offer low-cost exchange-traded funds, like VOO, which tracks the performance of the S&P 500. Historically, the S&P 500 has an annualized return of around 10%.
Where to invest $50k for 1 year?
Investing $50,000 for one year can be difficult because of stock market fluctuations. A covered call exchange traded fund like QYLD can return 10-12% ROI with minimal volatility. However, all investments carry risk in one year is a very short timeline.
How much interest does 50k make?
A good investment interest rate is typically around 10% return on investment. Therefore, a $50,000 investment should be able to return you $5,000 in the course of one year. Keep in mind, investment principal may fluctuate and some years are better than others.
You could invest $50,000 in S&P 500 today. However, the S&P 500 might have a negative return of 5%. However, the next year, the S&P 500 could have a good year returning 20%. The average annual return would be 7.5% return on investment.Click to Tweet! Please Share!Click To Tweet
Summary: How to turn $50k into $100k quickly
As you can see, it is possible to turn $50k into $100k quickly. You can either start a business or make a smart investment where you’ve considered the risk. Most businesses don’t succeed right away, so investments are your best chance of success.
The best way to double your money include Amazon reselling, real estate investing, swing trading, selling digital products, and IPO investing. Each strategy has their own risk and reward potential.
The best investment is a low-cost index fund like the S&P 500. However, you won’t double your money quickly by investing in the S&P 500. Short term investors can get a 10% return on investment through covered call ETFs like QYLD.