How to Multiply Your Money: 7 Legit Ways to Double Your Money
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Want to multiply your money fast? Of course you do. Who doesn’t want to double their money? Making extra money is a powerful tool that lets you pay off debt, save for retirement, achieve financial independence, and much more.
There are many ways to grow your money. The Internet is full of them. Some of them are good, like investing in the stock market. Others not so much, like get-rich-quick schemes. As with any opportunity, it’s key to do your research prior to taking action.
I first learned the power of growing my money when I was paying off debt. I wanted to pay it off quicker and learned about the power of establishing multiple revenue streams. The additional income was vital in reaching my goal of debt freedom and is the foundation of running my own business today.
How to Multiply Your Money
There are many ways to grow your money, and you need to find one that works for your situation. Doing so helps increase your chance of reaching your specific goal. You also don’t want to overlook extra income opportunities that match your skill level or availability.
Here are the seven best ways to multiply your money right now.
1. Invest in the Stock Market
Investing in the stock market is one of the best ways to multiply your money. It’s also one of the best passive income ideas to pursue. Yes, the stock market can be risky and you might lose money. You also make money investing in the stock market – you can’t do that without some risk.
The key to investing is to realize what you’re investing for and the time frame involved. If you’re saving for retirement, it’s likely decades away from now, but don’t let that time deter you from taking action.
You also don’t want to give in to the excuse of having little money to invest. Even if you have only several hundred dollars or less, it makes a difference and can be invested. You can invest in stocks with little money and do quite well. The key, however, is to start.
Many brokerages allow you to open accounts with $500 or less. Below are the best online brokerages you can use to invest in the stock market:
- Acorns – no minimum deposit required
- Ally Invest – no minimum deposit required
- Betterment – no minimum deposit required (they manage your investments for you)
- M1 Finance – no minimum deposit required
- Stash Invest – $5 minimum balance required
- Stockpile – no minimum deposit required, and they give you $5 in free stock to start
Time is the best gift you can give your investments. The earlier you start, the better.
Consider this, the Center for Retirement Research states that if you wait to start saving for retirement until age 45 you have to put away three times as much as you would if you had started at age 25.
The point? Let time do its magic as it’s one of the easiest ways to multiply your money.
If student loans are holding you back from investing, refinancing or consolidating them into a lower rate is a great way to kill them for good. Credible is a great option to refinance loans, at rates as low as 2.37 percent, with auto pay. You can receive your rate in under two minutes!
Check your rate at Credible to see how much you can save.
2. Invest in Real Estate
The stock market isn’t the only place to grow your money. You can also invest your money in real estate to grow it. Investing in real estate is one of the best ways to build wealth outside the market, and you can invest in either commercial or residential real estate.
Investing in real estate, like the stock market, is not without risk. You may not be able to fill a particular property or you may face an expensive repair. You may also have problem tenants. These all detract from your return, which is why due diligence is needed before selecting an investment property.
The other issue is that real estate often has a higher bar to entry than the stock market. Thanks to real estate crowdfunding, that is no longer always the case as you can pool your money with other investors.
Sites like Fundrise, PeerStreet, and RealtyShares let you invest in real estate with other people for a fraction of the cost.
Many of these sites require you to be an accredited investor but some, like Fundrise, don’t have the same requirement. Fundrise lets you open an account with as little as $500 in either a retirement or non-retirement account, letting you invest in either commercial or residential real estate.
RealtyMogul is another good option to use to invest in real estate. You need to have $1,000 to start, but it has lower fees than Fundrise.
3. Cut the Cord
Multiplying your money doesn’t always include making extra money. In some cases you can grow your money by finding ways to save money each month. Either are good options to pursue, though combining the two makes them that much more powerful.
With that in mind, it’s important to find money saving opportunities.
The best way to save money is by cutting the cord. The average cable bill is close to $110 per month, which is insane. If you are spending anywhere near that amount, the first step to growing your money will be canceling your cable or satellite TV bill.
I speak with people on a regular basis who struggle financially. Nearly each time, they are spending a significant amount of money each month on cable. Slashing that cost instantly gives you money for other needs.
We cut the cord over three years ago and now save almost $90 per month. We use the savings for other goals like saving for retirement and travel. The best part is that we still get to watch all the shows we want for a fraction of what we were paying DirecTV.
Thanks to streaming providers we can watch what we want without the nasty $100+ bill or monthly contract. Here are a few of the best cable TV alternatives that let you cut the cord and save big money:
- Hulu with Live TV – $44.99 per month for 60+ channels, start with a free 7-day trial
- Philo – $16 per month for 37 channels, start with a free 7-day trial
- Sling TV – $25 per month for 30 channels, start with a free 7-day trial
Take advantage of a few free trials to find a service that works for you. It’s relatively simple to save $50+ per month, which can go towards a more income-producing role.
4. Open A Savings Account
Savings accounts are the old-fashioned way to multiply your money. It will take years to double your money in a savings account, but they can be a good way to grow your money without effort.
I remember opening my first savings account and watching it grow as interest rates were good. That’s not the case anymore. There are still ways to multiply your money through a high-yield savings account.
*Related: Looking for a cheap cable alternative? Check out our Hulu Live TV channels list guide for why they’re a great solution to cut the cord.*
Not all high-yield savings accounts are created the same. The best ones will pay 0.8 percent or more, and require no minimum balance to start.
CIT Bank is a great option for your savings. With their Savings Builder account, CIT Bank pays 2.30 percent on your extra cash. You must open the account with at least $100 and deposit $100 each month.
The account is like any other savings account, and is FDIC insured to $250,000. If you already have a healthy emergency fund, a high-yield savings account is a great option for a variety of needs:
- Funding for a small business idea
- Saving money for an investment property
- Liquidity to manage business expenses
An online savings account may not be an exciting way to multiply your money, but it works. Chime Bank is another good option as they round up each purchase to the nearest dollar and places that amount in your savings account.
5. Rent A Spare Room
Do you have a spare room in your house or a second property? You can use that property to make additional income on the side. Renting property is a relatively passive income stream and is one of the best ways to multiply your money with minimal effort.
You can list your property for free on Airbnb. This lets business travelers and those traveling for leisure find your residence for their lodging needs. As a host, you have guests stay in your spare property for as little as one evening, or for an extended stay. This all depends on your availability and their need for a place.
The average Airbnb host makes nearly $1,000 per month. While you may have some expenses due to cleaning – which you can choose to do on your own – and any extras you may wish to provide, the rest is profit.
When listing your property you want to have a full, complete listing so it attracts potential guests. It also doesn’t hurt to be responsive when they contact you as that helps ensure more bookings.
Listing your property is free, but Airbnb keeps three percent of your booking cost to cover for their expenses. If you have a property, being a host is a simple way to multiply your money.
Check out our Airbnb host checklist to learn how you can maximize earnings.
6. Lend Your Money to Someone Else
One of the best ways to multiply your money is by lending it out to others through a peer-to-peer (P2P) loan. This is a great option if you have little money to invest with or you want to diversify your investing. You can loan your money to others through a platform like LendingClub.
People use platforms like LendingClub to get an unsecured personal loan. They use the loans for almost anything, including:
- Consolidating debt
- Funding a house remodel
- Refinancing a car loan
You get to choose which loans you want to fund, and can fund them in increments as low as $25. This helps you spread risk and maximize returns.
LendingClub claims to offer returns between four to eight percent for investors. Of course, this depends on how well you spread your risk and realize that the risk of default can impact returns. Like the stock market, when you invest your money in a P2P loan you take on risk, but it can be a good way to multiply your money.
7. Go Shopping
I thought I was talking about ways to multiply your money, so how does shopping help you make money? If you do it right, shopping can help you grow your money – in fact, I think it can be one of the best ways to make extra money.
I love to shop on Amazon. It means I get to avoid the store and I can do it from the comfort of my home. It doesn’t get much better than that.
How does shopping on Amazon help multiply your money? Easy – you get money back from your shopping through a cash-back site.
Ibotta is a similar app that lets you earn cash back when you buy groceries or shop online.
Grow Your Money: Bottom Line
There are countless ways to multiply your money. Some take longer than others, but there are plenty of opportunities to grow your money or create another income stream.
You may be looking for how to double your money fast, but those are often scams or opportunities not worth your effort. However, if you follow any of the opportunities above, or those like them, you are more likely to find success.
There are many ways to multiply your money. This list just scratches the surface. Each situation is different, so find what works for you and use it to start growing your money today.
What are some of your favorite ways to multiply your money? What’s the craziest thing you’ve done to make extra money? What do you think is the best way to invest your money?
John is the founder of Frugal Rules, a dad, husband and veteran of the financial services industry whose writing has been featured in Forbes, CNBC, Yahoo Finance and more.
Passionate about helping people learn from his mistakes, John shares financial tools and tips to help you enjoy the freedom that comes from living frugally. One of his favorite tools is Personal Capital , which he used to plan for retirement and keep track of his finances in less than 15 minutes each month.
Another one of John's passions is helping people save $80 per month by axing their expensive cable subscriptions and replacing them with more affordable ones, like Hulu with Live TV.
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