Doubling Money , how ?

ikram nouri
7 min readApr 20, 2021

Is there is any way to double my money ?

Actually , there is more than one way .

Investing is your solution, and lucky you there is not only one single way to do it . I’m about to reveal to you different strategies you can start using to double your money starting this year .

Everybody is just looking for easiest ways to double their money . Hard to believe because its sound to-good-to be true gimmick . So do not get tricked by “come get rich “ schemes . let’s be truthful if there is a simple way to double money in a short amount of time , shouldn't everyone start doing it ?

If you are already an investor or you are about to begin then take it easy , and be patient , dedicated and disciplined because believe me it’s not gonna happen in one night .

But here I’m about to give you some strategies that will help you to double your money and filled your bank account .

The rule 72

What is rule 72 ? and how it works?

the rule 72 is mathematical principle but also an easy way to figure out how long an investment will take to double, given a fixed annual rate of interest and that will start by dividing 72 by the interest earned on your investments each year so you can get the number of years that will take for your investments to grow. You can only use this formula for investments that earn compound interest ,not simple interest because compounding makes your investment grow exponentially ,meaning that is good for savings and investments . Using this rule it will help you understand how much compound interest can help to accelerate your savings , not only that but rule 72 its a great way to show you the starting to save for retirement earlier.

If your money could double every 10 years , you’ll have much more time to grow it if you start investing sooner rather than later .

Bonds

Before i open up about how you can invest in bonds and how it does help you to double your money.

Let me give you some brief informations about bonds . A bond in general is one of the three main asset classes ,or groups of similar investments ,commonly used in investing .Investors lend a government or company money for a set period of time , with a promise of repayment of that money , plus interest .

I will definitely tell you that bonds still hold some risk , but i’m also telling you that if the stock markets plummet , bonds can help soften the blow .

So now let’s move on to how this bonds work .

Bonds actually work by paying back a regular amount to the investor which also known as “coupon rate “, and are thus referred to as type of fixed-income security . Let’s say for example , you might buy a 10-year , $10,000 bond paying 3% interest . Your town in exchange , will promise to pay you interest on that $ 10.000 every six months, and then return your $ 10,000 after 10 years .

let’s get to the game to see How you can make money from bonds .

First thing you have to remember that buying bond will lower your overall risk , and that will be by balancing force within an investment portfolio and diversify your asset which keep you safe . And while bond may carry some risk afterall but they are generally much less risky than stocks. The good thing about bond as well is that bonds pay interest at regular , predictable rates and intervals .It’s a great way for people retires who like the idea of receiving regular incomes , bonds can be a solid asset to own .

I’m gonna show you two ways of making money by investing in bonds .

1- the first way to profit from bond is to sell them at a price that’s much higher than what you pay initially.

2- the second is to keep those bonds until maturity date and collect interest payments on them . By the way, bonds interest is usually paid twice a year .

There is a reasons why bonds rise . if the loaners credit risk profile make better so than its more likely for you to be able to repay the bond at maturity , then the price of the bond normally rises . additionally, if prevailing interest rates on newly issued go down, then the value of an existing at a higher rate goes up .

The only cause why i am saying too much about bonds because it’s worth the investments .And for the record , a lot of financial advisors say that bonds are great addition to your investments portfolio, unlike stocks that hold many risks , and which are purchased shares of ownership in a company , bonds in the other hand are the purchase of a company or public entity’s debt obligation .

Yes i know you may probably be thinking that stocks earn more interest , but the thing is they contain a plenty of risks . Unlike Bonds , stocks actually tend to be quite volatile . hear me up on that , if stock doesn’t pay a dividend , you must rely on the stock’s price to rise in order to get any return at all . Even if a company does pay a dividend m the amount could be cut , its never promised . That’s ,mean in stocks there is a zero guaranteed return .

Invest in safe options

There are so many options that both limit risk and maximize return , therefore traders often jump on trading options . What i really appreciate in trading options is offering the flexibility to the buyers as well as the sellers . it can be used in a wide variety of strategies in order to make profit .

image via pexel

Bear in mind that there is more than one strategy option out there , and they’re all pretty convenient to use . But, I’m about to give you the two most popular ones to apply .

1.Credit spreads : in this strategy , the seller can buy one put sell another , instead of selling unprotected option . The put purchased acts as insurance policy , limiting loss .

2.Covered calls : in brief , this strategy stand for ,example buying 100 shares , or you could use shares your already own and sell one call option for every 100 shares . When selling a call option , a cash premium is collected , and that money is yours to save , no matter what happens in the future .

Financial leverage is another advantage of trading options, investors can employ considerable leverage without committing to a trade . What really unbelievable is that leverage is created by making your investments work harder for you to boost profit . thus, the benefit of the leverage happen from increased property value , or higher company revenue which raises the value of stockholder’s shares .

Options are less risky as compared to other types of trading instruments . Massive losses can be prevent as risk is limited to the option premium.

Balanced funds

So far in investing , Balanced funds believed to be a great option for investors who are looking for safety shots , good income and modest capital appreciation . Maybe stocks might hold some risks to the investors , unlike balanced funds they provide the best risk-reward balance and helps to maximize the profit on investment .

If you are one of those investors who seek to play it safely , then Balanced mutual funds could be the best deal for you . Because these funds are mostly equity-oriented and take up about 40%-60% of the funds portfolio’s . the huge advantage of these funds is that they ensure capital appreciation and offer the most safety net against potential risks . The Question to ask is why this huge noise on balanced funds ?

Well , it’s easy no one is really willing to risk there money , so a majority of people go to funds , Not only That but balanced got some serious advantages .

Taxation benefits

You might already know it or not, but with this investment scheme , fund managers have the choice to migrate between debt and equity without presenting investors with a tax liability . if investors were to move between funds themselves , they would be subject to taxation under capital gains . this could have caused in hight taxation amount of about 30 % if the investors chose to move out from debt funds within 36 months of investing in it .

Secure from inflation

Funds sometimes play the inflation hedge when its about to be a crisis or something , especially if the investments include international bonds , that will be a relief for the investors since they can access to different countries that have not been affected by it .

these funds also permit investors to withdraw the money from the funds without any alteration to asset allocation .

As i mentioned before there is more than one why to make that cash double , you just need to open eyes widely while investing and it will be a good thing if stayed away from risks .

So what are waiting for , start investing and make a huge profit from investing starting this year .

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