Investing for the long-term is not about trying to double your money in 1 year or even 2years. It’s more about taking a longer view and looking at what you want your life to look like 10, 20, 30 years from now.
If you invest $5,000 per year through retirement age (age 67), and if the average annual return on stocks over these 40 years is 7%, then by the time you retire, you’ll have saved up over $1 million!
But if you really want to know the answer to the question “Is it possible to double your money in 1 year through investing?” the answer would be YES! It is possible to double your money in a year. But it also involves extensive research, knowledge, risk-taking ability, and a bit of luck.
In this article, we will be sharing different and practical ways you can double your money in 1 year through investing. So let’s start exploring:
Six ways you can double your money in 1 year through investing
Although there are various methods to use to double your investment in one year, we have put together these six ways you could consider if you want to double your money in one year.
1. Stocks:
The stock market is the best place to invest if you want to double your money in 1 year. The stock market is a little like a casino, and your initial investment can double in just a few months.
Stocks give you the most flexibility when it comes to doubling your money in just one year. You can buy stocks for companies like Amazon, Google, etc., and expect your initial investment to double in just a few months.
Read More: What to know about investing in stocks before getting involved.
But you have to remember that buying stocks of big enterprises won’t help you that much since they have already reached a level where the growth is quite limited. So you have to invest in new start-ups or small companies because they have a lot of room to grow.
2. Mutual Funds:
If you are just starting with investing, then mutual funds are the best place to begin your journey. We all know that if you have a spare $100,000 to invest, it’s better not to look at big companies because there is hardly any potential for fast growth.
So, let’s say you decide to invest in a mutual fund that invests in small companies. In this case, if the average growth of the small company is high, the value of your initial investment will grow fast. And if you properly diversify your investments, you can double your money in a year.
3. Cryptocurrencies:
The cryptocurrencies market is still relatively new and unregulated, which means there is a lot of growth potential. But the problem with the cryptocurrency market is that it can be incredibly risky. You might end up doubling your investment, or it might drop down to half the value in just a few months.
But if you get lucky and invest in the right cryptocurrency, you might be able to double your money in 1 year.
It is also true that many crypto investors doubled their investments in just a year. You just have to be careful and properly understand the market before investing.
The best way to look at cryptocurrency investment is to consider the majority at a 2year period at least. This way, you will have almost 100% certainty of doubling or even tripling your investment.
Another quick tip for investing in cryptocurrencies is not to panic sell when the price starts falling. Discipline yourself with patience and wait for the majority period you’ve set. But you can sell early if your investment doubles.
4. Real Estate:
There are several ways you can invest in real estate. You can either purchase an undervalued home and fix it up before reselling it or buy a rental property that you can rent out.
Both of these methods have the potential to double your investment in 1 year because you can make the value of the initial investment much higher through renovations or by renting it out.
However, suppose you consider real estate to double your money in 1 year. In that case, you need to make sure that the price per square foot is already low before buying the property.
There is no point in taking on a property with a very high price per square foot when it’s not likely to increase in value within the following year significantly.
5. Partnership in a business:
If you have a background in business or entrepreneurship, there are many potentials for you to double your money through various means. You have the opportunity to invest in a lucrative small business and become a partner. You can quickly increase your chances of doubling your investment within the following year.
6. Starting your own business:
The best way to double your money within one year is to start your own business. You can open up a small shop, or you can launch an online business that will only require time and effort before it begins generating returns regularly.
If you are good at marketing and dealing with finances, starting your own business could be a great idea. You have to do your research and look for things that are trending and have a lot of demand.
If you can properly launch your business, there is no doubt that your investment will double within the following year.
What can you do to increase your chances to double your money within one year?
Here are a few things you can do to increase the likelihood of doubling your investment within the next year.
1. Always look for under-valued investments:
Under-valued assets have the highest potential to double your money within a year. Look for companies and businesses that are currently out of favor and are not growing quickly. If you can purchase these assets at a low price, you can double your money within one year.
2. Do your research:
Many people cannot find good enough under-valued investments simply because they don’t know how to do proper research. You need to learn about the market, read industry reports, and thoroughly understand what you are investing in before putting your money on the line.
If you are not good at evaluating an asset, you can hire a professional to help you with expert evaluation.
3. Make sure you have a high-risk tolerance:
Doubling investments in a short period requires taking big risks. You have to be willing to accept that your investment might lose up to 50% of its value within a year.
If you are okay with taking on this type of risk, doubling your money is possible.
4. Look for small-cap stocks:
Small-cap companies usually have a lot of potentials, and they aren’t as well-known compared to large multinational conglomerates. Look for already established companies but have not reached their full growth potentials yet.
These types of investments usually offer a lot of returns within the next year and a half if you manage to pick a winner.
5. Diversify your investment portfolio:
You shouldn’t put all your eggs in one basket if you don’t want to lose all your money. This is even more important if you are looking to find ways to double your money within a year. You need to make sure that you diversify and don’t go for investments with similar qualities and characteristics.
6. Talk to a professional:
Talking to a professional is one of the best things you can do if you want to make higher returns in a short period. Finance professionals have all the knowledge in finance to help you find the best ways to double your money within a year.
You can even get a second opinion from other reputable professionals before investing. Make sure to go with a professional who has a good track record and is willing to help you find the best opportunities for doubling your money.
Bottom-Line
Doubling your money within a year is possible, but it won’t be easy. You can increase your chances by looking for undervalued assets. You should never invest all your money into one single investment.
Find reputable professionals who can help you double your money and take advantage of every possible opportunity while it lasts. You can also consider investing a small portion of your capital in cryptocurrency to get used to this type of asset class.
