We’ve all imagined what we would do if we could double or even triple the amount of money we earn every month or year. However, most people are too busy working and dealing with the trials and tribulations of work to really think about how we would legitimately go about this.
Find Out More: Stimulus Updates To Know for Summer 2022
Check Out: 22 Side Gigs That Can Make You Richer Than a Full-Time Job
According to experts, there are a number of ways to multiply your money. Like the old adage, however, it does often take money to make money, with a few exceptions, but it doesn’t have to take a lot if you’re strategic and know how to go about it. Here are some expert suggestions on how to multiply your money.
Employer 401(k) Matching
If you have a retirement account such as a 401(k) through your employer, find out if they offer matching funds and be sure to put into your account as much as you can. If you just put $2,500 a year into your 401(k) account, and your company matched even 50% of your contribution, you’d gain an additional $1,250. Not too shabby.
Live Updates: Financial Trends, Money News and More
Invest on the Stock Exchange
One of the best ways to multiply your money is to invest it on the stock exchange, said Adam Wood, co-founder of Revenue Geeks.
“Since 2000, the S&P 500, a leading stock market index, has generated an average yearly return of 8%. At that rate, your investment would quadruple in nine years. You can still invest and grow your money on the stock market. The trick is to immediately begin investing. Due to compound interest, the sooner you begin investing, the less money you will need to save in the long run.”
Real estate might be the oldest form of investing, but it can be the most productive, argued Doug Greene Wood, owner of Signature Properties, if you engage in “house hacking.”
“This means you can put down as little as 3.5% and purchase a new house, duplex, apartment, etc. every year,” he said. “Fix it up while you live in it and then turn around and rent it out. In five years you will be surprised at how much return that generates.”.
Real Estate Wholesaling
Another fantastic way to multiply your money in real estate is by wholesaling, Wood said. “This type of investing requires a small initial marketing investment that can double or triple within a few months if done correctly. You go out and market to motivated sellers. Once you get a house under contract, you then assign the contract to a cash buyer for $10k-$15k more than you offered. Repeat that many times over in a year and your small investment will balloon into hundreds of thousands.”
Invest In High Return Assets
Jonathan Merry, director at Bankless Times, recommends investing in “high return assets.”
“Blue-chip stocks offer the best returns, with an average of 10%. Individual stocks, on the other hand, are considered high-risk, and there’s a higher possibility you’ll lose money if you hold them for less than three or four years. Low-risk investments, such as treasury securities, which only yield 5% to 6% returns, are more difficult to become enthused about. Finding a medium ground is your best bet.”
Other kinds of funds include broad market index funds and exchange-traded funds (ETFs) that Merry said, “are guaranteed to deliver higher returns while also carrying less risk.” However, ultimately investing works best if you aren’t in a hurry. “Remember that investing for a longer period of time is safer and easier than betting on high-risk returns.”
Though cryptocurrencies have been somewhat volatile, Merry suggests they are still a popular investment option that can produce a high yield, albeit a risky one. “Cryptocurrency offers a way to increase your money quickly on a platform that is different from more typical investing options. While bitcoin has great profit potential, it also has a level of risk inherent that must be considered.” He urges education on the topic before investing. Look for educational tools that will help you better understand the nature of this investment.
Increase Your Career Skills
Rather than looking outside of your job to make more money, Matt Weidle, business development manager of Buyer’s Guide, recommends focusing on your existing career to increase your earnings. “Take some more training at work, for example. Alternatively, you may enhance your work performance and obtain a promotion or raise…Strive to improve on a daily basis and become a valuable asset to the company you work for.”
Passive Income Through Equities and Bonds
One low-risk financial strategy that everyone should consider is investing in equities and bonds, said Adam Garcia, owner of The Stock Dork. “Even if you put in more hours and save more money, as Warren Buffett puts it, ‘you will labor till the day you die if there is no money in your sleep.'” He said, “you should let your money work for you as you collect interest and dividends on your investments. The dividends you receive will vary depending on the performance of the firm and the size of your investment, but many of the world’s finest investors use this method to make money passively.”
He said investors can choose from a wide range of different types of bonds, each with its own unique advantages. “As an investor, you should look for a company with a secure payout ratio of 40% to 50%, and a yield of 4% to 6% is regarded as a respectable rate.”
More From GOBankingRates