I dont pay rent because I live with my parents and I’m not big on buying things so I usually spend a bit for food and some entertainment but I’m going to be saving at a rate of $1000 a month or more. How can I double or make my money grow fast. I have a CD account but it doesn’t accumlate much interest and not too familiar with other products or services, etc etc.
Sep
23
There are 9 Responses to “Im 24 and have $13k in savings. How can double my money quick or how can I grow it the fastest?”
#2 michael s - 25 September, 7:24 PM
Will Rogers said it best, “The only sure way to double your money is to pull it out of your pocket, fold it in half and put it back.” If anyone tells you they know how to double your money quick, run away because you’re about to be scammed. If you knew a way to double your money for sure, would you tell anyone else?
Be patient. Put your money in a discount brokerage like E-trade in a Roth IRA. Put it into low cost no-load mutual funds. If you don’t know what that means, go to the library and read a few Suze Orman books. Eventually, you will have a bunch more money. Enough to buy your first house if you want and enough to retire without worries someday.
#3 Missb - 28 September, 4:17 AM
Put the money into a fixed rate Certificate of Deposit (CD). They have a fixed interest rate and accrue daily. They offer different lengths 30 day, 90 day, 1 year, 2 year etc… of course the longer you have a CD the more money you acrrue of of the original 13k. They are paid out upon maturity with the interest you accrued over the life of the CD. Check with a local State Farm Insurance Agent. State Farm has a bank and great rates. I currently have 3 CDs through them. They dont try to scheme you and im getting 5% and 4% on my CDs. They dont cost anything and there is no way for you to lose money.
#4 Goonhilda - 01 October, 7:02 AM
You need an investment product with a higher rate of interest than a term deposit or a cash management account. Sure, they’re great products, but they won’t double your money quickly. They’re safe, low risk products.
The higher the risk of an investment, the higher the potential return. I would recommend a managed or mutual fund for your purposes. They are easy to access, and you can contribute to them monthly. This is how they work.
Basically, an investment company pools together all the money of their investors, buys a portfolio of shares and stocks, or property, or whatever else they want to specialise in, like emerging markets or resource companies or cash. The benefits of this are that the company spreads the risk over many different asset classes, and over many different companies and organisations. They then issue ‘units’ which are a bit like shares, to a degree. The money you invest purchases a set amount of units, based on the current value of the units at the time you buy in. If the value of the shares they’ve invested in goes up, your investment’s value goes up. It can also go down, but if you’re prepared to wait it out for a few months or a year, it usually rights itself.
The good thing about mutual or managed funds is that they are very cheap to access. You only need about $2000 sometimes to get into them. They allow people with little investments the ability to invest in things that they otherwise couldn’t afford to invest in. They also offer a huge variety of investment options, all with their own degrees of risk. You can access your money within a few days, although you’re stuck with whatever the value of your units was on that day. As a long term (5 years or more) product, they are incredibly good value, and have very small fees. They’re basically like a special bank account, except your money gets far better returns.
I suggest you check out morningstar.com, which is a website which deals with managed funds, and go to your bank and see if there is a financial planner on staff. Sometimes seeing a financial planner is a free service. They can recommend the best product for you. Because they work in that industry, they have a better idea of what is available, and can also direct you to products that best suit your comfortability with risk and your investment timeframe.
Don’t expect to double your money quickly. A good rule of thumb is to divide the rate of interest into 72. That will tell you how many years it will take for your money to double. For example, 7% into 72 = 10 and a bit years. Don’t go for anything too high risk (above about 9 or 10%,) and DO NOT INVEST IN ANYTHING YOU DON’T UNDERSTAND! Otherwise you’ll risk losing everything. Keep it conservative, and have a game plan. Try putting half your money in a lower risk investment and the other half in a higher risk investment.
I started by investing $7000 at 17. Ten years later, in a good managed fund, it was worth $18000. I used that money last year to buy a house. So accept that this will take time. The more you invest now, the better, because your money will have longer to double.
Best wishes!
#5 Joe K - 02 October, 2:13 PM
buy real estate if you live in larger city. Not only does the price of the property rise, but you also get rent! Owning real estate for investment takes some business skill, so it will be good for you. As you have more equity in your first home, use that to buy another…then another. Be real, don’t go for any of the silly real estate schemes out there… and you’ll do great. The exponential growth will really have an impact on your life in 15 to 20 years, if not sooner, and the business experience you pick up on the way will be invaluable. Find someone who invests in real estate, a family friend or a referral from a family friend, and go get your first house!
#6 Shaun R - 04 October, 1:52 AM
You should learn to trade the stock market. Many professional traders can make 2 to 3 did-git returns on their money year after year.
All you have to do is learn a few simple rules and develop a system.
This site will teach you a lot and help you develop your own system.
#7 Martin B - 04 October, 10:48 AM
Sillygal,
You can invest in Tax Lien Certificates and they are 100% guarenteed by the goverment. In some states you earn 50% interst that’s on the high end and on the low end 12%. My father buy Tax Lien Certificates all the time as the interest is higher than putting his money in the bank. You can learn more about Tax Lien Certificates by doing a search online or email me at: and I can provide you with links to some of the sources my father uses.
I hope this helps!
Martin
#8 kckid2 - 05 October, 11:33 AM
Pork bellies works. But, you have buy it only when it is going up.
So, best to consult with a psychic.
#9 newjerseyguy - 06 October, 10:34 PM
The best thing you can do is educate yourself on the basics on investing - it will pay off for the rest of your life and you don’t need an MBA to master the fundamentals. “Investing For Dummies” and Suze Orman’s books are excellent starters.
whoa, 1k a month? daaaang.
well, mutual funds earn about 8% on average, and that’s like 4 years for your money to double. or, you could wait 13 months… lol