How to Make Your Money Double By Michael Osland
Everybody aspires to double their earnings or savings. But only a few use the right opportunities to fulfill their wish. Often people reject their thought for finding it to be too good to materialize. However, you don’t have to follow suit. You can seek legitimate ways to make more money with less risk, and it doesn’t involve buying lottery tickets. As hinted, you need to study and explore your options. According to investors and finance gurus, you can achieve this by going slow, being patient, or so on. Let’s learn about them quickly.
Michael Osland: Ways to double your money
Earn it slowly
As they say, “make money the old-fashioned way.” You can put your money in a non-speculative portfolio that consists of blue-chip stocks and high-grade bonds. High-grade bonds can be reliable for they are low-risk investments. Still, you cannot expect it to yield results in one year. However, if you stick to the rule of 72 that gives you an estimate of when your investment can double up. You can hope for success. Suppose blue-chip stocks delivered about 10% returns annually in the past hundred years, and bonds accounted for 4% for the same amount of time. Going by this, you can expect a total of nearly 8% return in one year from these two.
Experts like Michael Osland advise people to expect lower return rates because this can give a more realistic view of the situation.
Opt for a safer alternative
US Treasury bills, US savings bonds, and a few others are an example of zero-coupon bonds. You don’t get any interest in their lifetime, but you can obtain them for a low price through a discount. You will reap returns on their maturity. You may not be sure about investing in them if you don’t know how they work. These are quite simple to understand, though. Suppose you buy a $1,000 bond with $500 at a discounted rate. You will not get an annual interest on this. However, the value will slowly increase as it approaches maturity.
One of the benefits of this is that your total payoff goes into savings as you receive it only at the bond’s maturity, which otherwise you would have reinvested like the yearly interest payments.
Go the simple way
If you are a no-risk-taker, then consider doubling your savings through the employer match. Your dollars automatically increase when your employer adds to your 401(k) contributions. For instance, you deposit 5% of your annual income, and your employer adds 50 cents per dollar to that contribution. In the end, you can expect your money to grow by 50% without a doubt. It is a guaranteed return that you get. Some employers may not match 401(k). Michael Osland says you don’t have to worry about this. When you save in your retirement account, you may become eligible for certain tax benefits.
While these are some of the simple and easy methods to grow money, some risk-taking individuals go after penny stocks, margin trading, or stock options with an expectation to witness a massive jump in their income in a short time. However, it is advisable to be careful with such instruments as any mistake can instantly wash away all your money.
