Everyone wants to have extra cash in their pockets, the hard part is figuring out how to make that extra money.
These days it seems like everyone is freelancing, working some kind of side job, or renting stuff out – you get the jist – and they’re getting the job as well. But what if your second income doubles the original amount you’re getting paid? Sounds pretty tempting, right? Doubling your money is a badge of honor, often used as bragging rights around the Thanksgiving dinner table and at parties. Perhaps the urge to double one’s money comes from deep in our investor psychology: the risk-taking part of us that loves the quick buck.
When it comes to efforts to do so, however, two critical elements that are interrelated need to be considered: time and risk. There are a number of options that come with limited risk. Meanwhile, those looking to shoot the lights out and double their money quickly have their fair share of high-risk, high-reward options to choose from too. To make money, you always have to invest some amount somewhere. That’s an unsaid golden rule: you cannot double your money without risking a little bit.
You might have seen people suddenly being able to afford luxury stuff overnight, and you’re left wondering how they find all those ways to make money or double it. Well, they probably stumbled across our list of ways to make extra money. Or you know, another list somewhere – that’s totally possible too.
1. Stock Market Trading
We all are familiar with this, having heard from nearly everyone who is ‘financially inclined’. Investments made in the stock market have mostly yielded a high rate of returns. The annualized rate of return observed in the stock market in the last decade has been 15%. Investing in blue chip companies can have a scope of doubling the money in a time period of 3 to 5 years. It is, however, essential to have fundamental and technical knowledge of the stock market’s working to reduce risks.
2. Mutual Funds
Mutual funds are largely a safe investment, seen as being a good way for investors to diversify with minimal risk. There are several mutual funds such as debt oriented, equity oriented, balanced or hybrid mutual funds. Though there is some amount of market risk associated with mutual funds, the rate of return is higher compared to other investment instruments available. The rate of return for mutual funds depends on the tenure of the fund chosen by the investor. Long term mutual funds offer 12% to 15% per annum as rate of return. Doubling money through mutual funds will take approximately 5 to 6 years, which isn’t a lot of time in the long run.
3. Real Estate
It is one of the more effective ways to double your money. You can generate a regular rental income by investing in residential real property. You can own an asset, diversify your portfolio and save taxes. In 6 to 7 years, your property’s value can double. The catch is, real estate investment requires huge capital to invest. Multiple factors influence the return, including location and infrastructure development in neighboring areas.
Of course, unlike other investments here, you’ll be forced to invest further money to keep your home in good repair, keep current on property taxes and continue paying down the mortgage. That means further outlays of money, but otherwise you’d have to pay rent, and you get upside by owning.
4. Cryptocurrency Trading
With all the talk around cryptocurrency in the last couple of years, we had to come over to this topic some time or the other. The volatility of cryptocurrency – whether it’s Bitcoin, Ethereum or some other coin, they’re all an opportunity for speculators to make money trading. Of course, it’s an opportunity to lose money as well, but that’s always part of the trade-off if you’re looking to double your money quickly.
While many crypto-currencies have soared over the last year, they can bounce around significantly, making it tough to hold on when they fall. If you’re careless about the market trends, you might end up buying high and selling low, bailing out when prices crash, and you’ll end up putting money in someone else’s pocket instead of yours. Point being, it’s relatively easy to lose money on cryptocurrency if you can’t manage your positions, and there are much easier and lower-risk ways to double your money.
5. Side Hustle (Small Business)
Your regular income is not creating the financial stability or freedom you want, is that correct? Well maybe it’s a good time to look elsewhere. It may be time to start your own side business. Now, this doesn’t mean you need to go invest all of your money in a hustle you find online to see if it works out. Instead, the idea here is to invest in yourself and see which of your skills or hobbies could be put to better use.
There are a number of ways you can utilize what you already have to start a side business, many of which can be done entirely online. Here’s just a few idea to help get the gears turning:
- Affiliate Marketing: A large social media following can help you become an affiliate marketer for a brand you care about. Essentially, you can earn money for referring people to that business.
- Freelance: If you are a writer, designer, or coder, Here’s a boon for you. Search popular websites like Upwork or Linkedin to find freelance opportunities. You can utilize your skills to make money on the side and potentially grow your own business.
- Virtual Assistants: Becoming a virtual assistant may not be your first choice when starting a side business, but it can pay pretty well depending on your skills. Look online for virtual assistant roles that fit your schedule and test it out.
- Photography: If photography is an interest of yours, you may find your can use this hobby to supplement your income over time. Photography is a competitive market in some areas, but there are limitless opportunities online. Research websites that buy and license photography to get a better idea of what’s out there.
OK, let’s be honest here, gambling is not a reliable way to double your money. And, truth be told, you’re more likely to lose that money than walk out with the same amount. But with that said, being sensible and having a strategy can result in some solid wins if you know when to walk away from the table.
Games like roulette or poker can be fun and profitable. But here’s the thing; when you’re up – either pocket that profit and bet with a smaller stack, or walk away. Chasing the win or revenge betting (when you had a big loss so you play an angry bet to win it all back) is the best way to lose money. Know how to spot your advantage and when to stop betting and this could be a very nice little earner in the short term.
If you are a writer, designer, or coder, Here’s a boon for you. Search popular websites like Upwork or Linkedin to find freelance opportunities. You can utilize your skills to make money on the side and potentially grow your own business. If you’re already a native English speaker, you can also consider teaching English online for some extra money.
Well, these are some of the options you could consider when you’re trying to increase your income exponentially. A good investment option should be chosen depending on the time frame of investment and the risk factor you’re going to be exposing your finances to. It is advisable to opt for long term investments, as the chances of doubling the money is reliable. However, you should always consult an advisor before choosing any investment option.