How to Double 50k (20 Best Ways & Tips to Help)

Yes, you can learn how to double 50k by reading this article.

It reveals as many as 20 ways and tips to help you or anyone else double 50k legitimately!

 

Importance

There are many examples of common everyday events in our lives that utilize the word double.

Examples include if you have been drinking too much you may see double, or if you use grammar incorrectly you may utilize a double negative.

Also, if you go on a date with another couple that would be considered double dating, or if you are meticulous about your work, you may double-check it.

Additionally, if you are a gambler an expression utilized to take an added chance would be the expression double down.

Of course, as it relates to money the best expression that we can get excited about is doubling our money.

Consider the possibility that you have $50,000 and you want to double your money.

(Any amount of money for that matter).

What are some good action steps and strategies that you can take to double $50,000?

 

Personal Story

It was the early 70s and I was in the United States Navy and had just recently got married.

Admiral Elmo Zumwalt had become the head of Naval operations and was known for his infamous z-grams.

As part of relaxing the military standards, he relented on some grooming standards but also began cracking down on sailors that were overweight.

The combination of these stricter policies as it related to overweight sailors and getting married created a situation in which I found myself in double jeopardy.

Not that getting married was a jeopardizing situation but I had become complacent and was putting on weight (not blaming marriage or my wife).

Drastic times call for drastic measures and so I went on a crash diet.

In a matter of two months, I lost 40 pounds which was an average of 5 pounds a week or twice as much of a weight loss that would be considered healthy or 2 1/2 pounds a week.

All that to say is that I had doubled my weight loss per week by adhering to a disciplined plan of action which included playing racquetball every day and cutting back significantly on my eating habits.

Whether we want to double our weight loss or double our monetary investment, the same strategy applies.

It takes a plan of action and follows that plan of action.

 

20 Best Ways & Tips to Double 50k

 

1. Budget 

As it relates to all things financial, the framework for success begins with the budget.

A budget is a financial tool that captures the income and expenses of an individual’s financial activity over a set time.

The budget can be set up for a month, a quarter, a year, or even long-term.

On the income side of the ledger should all be all of the streams of revenue expected and on the expense side of the ledger all of the expenses.

Typically, the expenses can be defined as fixed and non-fixed.

Fixed expenses are those expenditures that need to be paid monthly and there is generally no room for cutting back or doing without.

Examples of fixed expenses would include rent/mortgage, utilities, obligations such as alimony, etc.

The other expenditures would be classified as non-fixed and can be cut back, increased, etc.

Examples of non-fixed expenditures would include entertainment, clothing, food, etc.

With everything included in both sides of the budget, the totals should at least balance out to zero, and better yet if there is a surplus on the income side of the ledge.

 

2. Strategy

With the goal being to double $50,000, the next action item would be to develop a strategy.

A strategy is taking this goal and developing a plan as to how that goal will be realized.

The strategy could include setting aside a certain amount of money for investments each month, taking on an extra job, cutting back expenses, setting up milestones, and more.

The strategy should be realistic and doable.

 

3. How Long?

Another important part of the action plan is to determine how long will the doubling of the $50,000 take.

The target date will help you to stay on task and brings accountability.

The formula to success takes the goal plus the plan of action which should equate to a set time in the future.

Consider the sport of archery.

You have the bow and arrow, and you wish to hit the target but more specifically the bull’s-eye.

As it relates to doubling your $50,000, the bow could be likened to the budget.

the arrow being the strategy, the target would be the doubling of the $50,000, and hitting the bulls-eye would be the target date.

In hitting the target, you would achieve the $50,000 but the bull’s-eye is what you are aiming for and that is the target date.

4. Plan 

Whenever traveling is considered, there is the formulation of a plan.

A travel plan consists of knowing your destination, what is the route that you wish to take, being assured during the travel that you are on track using certain mileposts, referring back to the plan as needed, and ultimately reaching your destination.

If our traveling plan is to double $50,000 in five years.

The route we take is the investments we will consider, the mileposts are the achieving of certain amounts of money at specific times through the journey, we refer back to the plan as needed and adjust if there are detours or “potholes” along the way, and the reaching of our destination.

 

5. Emergency Fund 

The reality of life is that events occur that are beyond our control.

Often these events can include the loss of a job, illness, major home repairs, and more.

When these events happen and we don’t have the financial resources at hand to bridge these difficulties, we resort to the use of loans or credit cards.

With this in mind, to move us towards the doubling of that $50,000, we need to set up an emergency fund or nest egg to smooth the troubled financial waters when these events occur.

Many experts recommend that an emergency fund should be the equivalent of 3 to 6 months of household expenses.

Therefore, if your household expenses are $2000 a month you should have in your nest egg anywhere from $6000-$12,000 set aside.

Of course, it should be invested in some high interest-yielding account that you can access fairly easily.

 

6. Debt

Another important strategy on your road to doubling your $50,000 is to decrease and eliminate any debt that you may be carrying.

The average credit card debt for a household in America, as of 2021, was $6270.

This statistic is according to Value Penguin.

If this is a reflection of your financial situation, then it will come as no surprise to you to realize that in carrying balances, you are paying interest to the credit card companies.

By eliminating your debt, you will eliminate these interest payments and they are better invested in your personal financial life rather than these big companies.

 

7. Index Funds 

An index fund is a type of mutual fund and provides an opportunity for the investor to have a broader market exposure that reflects the components of a financial market index.

An example of the market index would be the Standard & Poor’s 500 indexes.

In addition to providing greater exposure on a broader scope, an index fund has low operating expenses and portfolio turnover.

Index funds are considered a good investment especially for retirement accounts because the funds are invested in all of the index companies.

Also See: How to Invest $100 to Make $1,000 a Day & Lazy Ways to Earn Extra Money.

 

8. 401(k) 

If your employer offers a 401(k), it is critical to maximizing that benefit.

Many companies that offer this employee benefit will match the employee’s donation into the retirement account up to a certain percentage.

As an example, if your company matches the 3% that you put into your retirement account and you only set aside one or 2% into your retirement account then you are leaving that difference of one or 2% on the table and not taking advantage of that “free” retirement money.

 

9. Fundrise 

Fundrise is an investment platform that provides a non-complex way in its concept and is available for an investor to invest in quality real estate.

The advantage is that it is another opportunity to diversify your portfolio, invest in the proven asset of the value of a property, reduce risk, and stabilize investing.

Other advantages of Fundrise include low fees and low minimums for involvement.

 

10. ETFs 

ETFs is an acronym that stands for exchange-traded funds.

This is another good investment opportunity.

ETFs are a pooled type of investment security that operates similarly in comparison to a mutual fund.

An ETF would track a particular index, sector, commodity but unlike an index fund, ETFs can be traded or sold in the same way that you would with a share of stock.

An ETF price can fluctuate through the course of the trading day, unlike mutual funds which only can be traded once per day after the closing of the market.

 

 

11. REITs 

The acronym REIT represents another investment opportunity known as Real Estate Investment Trust.

As part of your portfolio, they will provide investment monies and help to diversify your portfolio.

A REIT investment pools your financial resources with other investors with the return being dividends earned from owning a share of a variety of real estate properties.

The real estate properties owned through this investment vehicle can include actual buildings such as malls, warehouses, office spaces, apartment buildings, and more

As an investor within this pool of other investors, the investment monies are realized without the physical interaction of financing, managing, or buying any of the properties.

 

12. Mutual Funds 

Mutual funds are another investment opportunity in which investors pool their money together and utilize that pooled money to buy other securities which generally includes the purchase of stocks and bonds.

A mutual fund is professionally managed and, according to law, can only invest in certain high-quality investments that are defined as short-term.

A mutual fund is typically a low-risk investment because the invested money is in U.S. corporations, local and federal governments.

 

13. Side Hustles 

As part of the strategy in doubling $50,000 is the ongoing investment of money regularly into your portfolio.

This additional investment of money can be realized by engaging in additional jobs to supplement your current income streams.

A side hustle can be driving for a delivery service such as Uber or Instacart, freelance writing, being a handyman, etc.

Whatever skills, assets, and talents that you have can be utilized to earn extra money which will help to go towards doubling your $50,000.

 

14. Flip Houses 

Property, historically, has always been a good investment because the availability of property is limited.

That limitation being is that there is only so much land available that can be purchased.

With that in mind, a good strategy to raise significant dollars is to purchase a home, put a modest amount of money into the home by making a few changes, limit remodeling and then put the house back on the market or “flip it.”

You will not only recoup your invested money as you sell the house for a profit.

 

15. Rental Home 

An opportunity to not only increase your wealth by gaining assets but also in realizing additional monthly income is to purchase a rental home.

Once purchased, the house can be rented out and you will receive monthly income which can be invested and be part of the strategy in doubling your money.

Also, being a landlord has certain tax advantages which may help in reducing your tax burden.

 

16. Bonds 

Bonds are investment opportunities in which a company or possibly a government needs money to enhance their infrastructure, purchase new equipment, upgrade the software or other types of technology, etc.

Bonds are sold by a variety of entities to raise money to invest back into themselves.

To raise this money, they sell bonds and the investor can buy these bonds with the promise of receiving a certain return on their investment.

When the bonds reach maturity the original investment plus the rate of return is paid back to the investor.

 

17. Alternative Investments 

As part of your diversification strategy, it is important to invest in other non-standard or alternative investments.

Those alternative investments could be the purchase of cryptocurrency, precious metals, investment in artwork, etc.

Investment and subsequent return may or may not be robust but certainly diversify your investment portfolio.

 

18. High-Interest Bearing Account 

Another investment vehicle that can be considered in your journey to double your $50,000 is to invest money in a high-interest-bearing money market or savings account.

The advantage to this option is that in the event the money is needed it is fairly liquid and available and yet is in a higher interest-bearing account that will provide a great return than if held in a savings account offered by a bank.

 

19. Business 

An opportunity to gain steady income that can be utilized to invest each month back into your overall goal of doubling your money would be to start or buy a business.

Of course, as with all investments, there is a risk, but certainly is an option that can be considered if an individual has dreamed about business ownership.

Also, as a business owner, there are associated benefits as it relates to reducing the possibility of your tax burden.

 

20. Live Within Your Means 

A powerful strategy to follow in doubling your money is also to stay within your means.

The bottom line to this strategy is that you don’t spend more than what you have or you stay within the confines of your budget.

This may mean delaying the purchase of a new vehicle for another year or two, investing any potential bonuses received from your employer, maintaining the same standard of living even though you may receive pay raises, etc.

To put this strategy into practice can be specifically stated by saying if it’s not in the budget and not in the bank then you don’t spend.

 

How to Double $50,000 FAQs

 

What Is the 70 Rule?

The 70 rule pertains to how long it will take you to double your money.

To find the answer you divide 70 by the anticipated return on the investment.

The answer is then a reflection of the number of years it will take to double your money.

For example, if you have $70,000 and you want to double it, for the sake of easy arithmetic, that would be $70,000 divided by 7, the anticipated rate of return, which equals 10 years to double your money at a return rate of 7%.

 

Is It Possible to Lessen the Time Involved to Double Your Money Earlier if Using the Above Scenario.

Yes, it is possible.

The investor would need to continue to invest money over the time frame involved to realize a doubling of their investment.

 

You Can Do It

Just about anything is possible if you have the drive, discipline, and a plan of action.

You can double your money by utilizing investment vehicles and following your plan of action.

 

Conclusion

When it comes to the process of doubling your revenue it is always a good thing for you as long as your expenses don’t increase as well.

If you invest your $50,000 in a variety of investment vehicles, develop a plan of action, and adhere to that plan you can realize a doubling of your money.

That is certainly doubly good.