It’s possible that you came into some extra money or that you increased your funds by engaging in a variety of part-time or side ventures.
There are a surprising variety of ways to go about doubling $50,000, which is good news if you’re trying to figure out how to do it.
If you want to learn how to turn 50K into 100K, you have a lot of options, including different methods of investing.
You could also start a business.
If you are prepared to put your funds to work, the following suggestions are opportunities that could result in double your initial investment of $50,000!
How To Turn 50k Into 100k: The Preparations
Take a step back and evaluate your current financial status before you invest your $50,000.
Do you now have any significant financial concerns that require immediate attention?
It would be best if you were sure that your personal finances are in order before you start investing your money.
Before we get into investing, let’s take a look at your current financial condition and see where you stand.
Pay Off Your Debts
If you still owe money, you should put the $50,000 toward paying off your debt.
Whether in part or in full, this is especially important if the debt has a reasonably high-interest rate.
Get Your Emergency Fund In Order
In case we lose our jobs or experience some other form of financial upheaval in our lives, financial gurus advise that we save aside enough money to cover our living needs for three to six months in an emergency fund.
Place this money in an investment that is both secure and liquid.
I’m talking about a money market fund or account, a savings account, or any other vehicle that is secure and easy to access.
You should avoid taking any risks that could result in a loss with this money and instead keep it accessible for use when it is required.
Assess Your Risk Tolerance
The circumstances of each investor differ.
Examine your goals and the amount of risk you are willing to take before determining how to invest your $50,000.
Take into account some factors, including your age, the amount of money you’ve previously put into the market, and whether or not you have an adequate savings cushion for unexpected events.
If you have a low-risk tolerance, you can always put your money into a high-yield savings account.
Related Reading: How To Start A Home Based Book Keeping Business – Learn Here.
How To Turn 50k Into 100k: The Best Options Available Today
Before we dive into the specifics of how to go from $50,000 to $100,000, let’s take a moment to discuss appropriate goals and timelines.
This article contains a couple of methods, some of which are more passive than others.
Determine if you want to earn money in a passive or active manner, as well as how much time you can allocate to the endeavor.
Your financial resources, as well as your hobbies and preferences, will play a role in determining the type of investment scheme that is best suited for you.
And since there are so many different paths to choose from, there is a venture that is suitable for everyone.
Last but not least, you always have the option of speaking with a financial advisor to receive guidance and suggestions that are tailored to your particular circumstances.
Put Your Money Towards An IPO
The process by which a company becomes officially listed on a stock exchange is known as an initial public offering (IPO).
Because of this new round of funding, these businesses have access to significantly more capital.
As a result, many of these businesses experience significant expansion.
Consequently, the initial public offering (IPO) is frequently a “sink or swim” situation for the vast majority of companies.
After making their company available to the public for the first time, a significant number of businesses fail.
As a result, it is essential to choose high-quality businesses in which you have faith they will be successful.
One of the thriving initial public offerings (IPO) is Shopify, which is an e-commerce platform.
Real Estate Investing
Investing in real estate could be the right choice for you if you have a goal of doubling your current net worth of $50,000 and like the notion of earning money on a hands-off basis.
You also have quite a few possibilities with $50,000 at your disposal here.
The first option would be to find one or two other investors with whom you might combine your resources in order to purchase a modest investment property.
This tactic is pretty typical when dealing with members of the same family or close business partners.
You could also put your money into income-producing real estate through businesses such as Fundrise.
Fundrise is a company that facilitates real estate crowdfunding by pooling the funds contributed by real estate investors to purchase income-producing properties such as multi-family homes and commercial office buildings.
Historically, Fundrise has provided a return of approximately 8% annually to investors.
The yearly management and advisory costs that you pay are a mere 1%.
Due to the fact that Fundrise’s minimum investment requirement is merely ten bucks, it is one of the most user-friendly and widespread forms of crowdfunding currently available.
Obviously, in order to turn $50,000 into $100,000 through investing in real estate, it will probably take several years.
You should give some thought to this asset class if you’re interested in a more passive kind of play.
Invest In Mutual Funds
Building wealth and generating income from your investments can be accomplished quite successfully with the use of mutual funds.
One way to think of a mutual fund is as a collection of stocks and other investments that are traded on the stock market and may be bought or sold with minimal effort.
Since mutual funds are actively managed portfolios, their associated costs are often greater than those of index funds and exchange-traded funds (ETFs).
However, a significant portion of these expenses is frequently compensated for by the superior performance of the fund.
Your original investment can grow substantially through the use of mutual funds without exposing you to a large amount of risk.
Before you commit any money to the fund, you are free to investigate how it has performed in the past.
You may use this information to evaluate the performance of the fund managers and determine whether or not they consistently outperform the market.
Related Reading: Is Acorns Worth It – Find Out Here.
Flip Products On Amazon
Buying and selling things on Amazon is another effective method for turning your $50,000 into $100,000 in a short period.
You could do well as an Amazon reseller by discovering things at a lower price and then reselling them online for a profit.
When someone purchases the item that you are selling, you get paid some amount of money.
Knowing which products will do well in terms of sales is essential to having a successful selling experience on Amazon.
On Amazon, you can uncover things that are being cleared out of stock at prices that will more than quadruple your money and sell in a flash.
On the other hand, you can come across things that you believe will do well in the market, yet they remain unsold for months.
Begin with a modest offering and educate yourself on how to sell successfully on Amazon.
You will eventually have a notion of what sells and what does not sell after some time has passed.
After you’ve gotten the hang of making money through internet resale, you may put the remaining funds you have to good use.
You are not restricted to purchasing from Amazon alone.
You also have the option of selling on eBay.
Amazon and eBay both have seller apps that allow you to scan a barcode and get an estimate of your product’s profitability.
Create and Sell Digital Products
Creating and marketing your very own digital product is something that may be done without cost at all.
On the other hand, if you are knowledgeable on how to invest your money, you may speed up the process.
You would be establishing a sales system that will allow you to sell your product on multiple occasions in the future.
For instance, you need to conduct research on the market and decide what kind of goods you want to offer for sale.
Let’s say you want to create a workout class that people can get on their computers and watch at their own convenience.
You identify a freelancer who is willing to create an exercise course for you.
Depending on the material covered in the class, you can easily spend as little as $1,000 or as much as your entire $50,000 investment.
Nevertheless, for the sake of this illustration, let’s pretend that the course set you back $10,000.
You discover that the going rate for a standard workout class is approximately $40.
Therefore, in order to recoup your initial payment, you will need to sell a total of 250 courses personally.
You also have the option of offering a commission to a third party in exchange for them selling your product.
You devise an affiliate scheme that awards a commission of fifty percent to anyone who sells your goods on your behalf and enrolls them in the program.
You should now focus your efforts on establishing connections with content creators working in the fitness area.
These content creators will help market and sell your product on your behalf.
Let’s say you succeeded in recruiting three hundred people to spread the word about your class.
Collectively, these affiliates are successful in selling 45 courses each and every month.
You now have an online business that brings in $900 every single month, and you don’t even have to sell anything.
Invest In Crypto
In the recent past, there has been a meteoric rise in the popularity of investing in cryptocurrencies.
As is the case with the introduction of any new asset class, investors have a wide variety of options at their disposal for diversifying their holdings and putting their capital to use.
The most straightforward strategy is to make purchases on well-known exchanges, like Coinbase, and then continue to hold them in the expectation that their value will increase.
You may gradually diversify your holdings by purchasing Bitcoin, Ether, Cardano, and a few other cryptocurrencies.
But before you do so, it is crucial that you conduct your own research and analysis.
In addition to this, there are a lot of intriguing options to earn passive income using cryptocurrency.
For instance, Nexo allows you to buy and deposit bitcoin, and you can then start earning daily interest on your cryptocurrency holdings.
In addition to having some of the most competitive APY rates available, Nexo also offers significantly higher payouts than any standard high-interest savings account can offer.
You could earn up to 20% annual percentage yield (APY) on various cryptocurrencies.
And at the moment, cryptocurrencies such as bitcoin pay 8% APY.
BlockFi is a competitor to Coinbase, which provides Crypto Interest Accounts, which enable users to put their cryptocurrency holdings to work in order to create yield.
In general, this is a fascinating field with plenty of fresh prospects for earning money.
Is it a simple method or one that ensures success in doubling $50,000?
Certainly not; this is why, before taking any action related to cryptocurrency investing, you need to ensure that you’ve read up and that you are knowledgeable about the market.
Invest In Dividend Stocks
The purchase of dividend shares is yet another method for increasing one’s income.
Dividend-paying stocks are basically corporations that pay you a tiny percentage of their profits each quarter or year.
This is opposed to using all of the earnings for business operations and reinvesting into the company’s future growth.
This practice is common among developed economies.
The annual percentage yield (APY) of the dividends that a firm pays out can range anywhere from 0.50% to something in the neighborhood of 12%, depending on the corporation.
Those who invest consistently end up receiving larger checks on a monthly or quarterly basis, which results in more cash in their possession over time.
When you engage in swing trading, you buy shares of a high-quality company that has recently been sold off.
The share price of a corporation can frequently plummet as a direct result of negative reactions from the market.
Companies are frequently undervalued during selloffs, which implies that you can purchase their shares at a discount price.
You won’t have any trouble finding swing trades that provide you with a return on investment of 30%.
The crucial thing to think about is whether or not you are confident that you will get your investment money back.
That is to say, you are not placing your money in the hands of an unrecognized business that has the risk of going out of trend.
For instance, you may have seen that the price of a share of Facebook stock was now at $200.
It’s possible that certain unfortunate developments will bring about a temporary decline in the share price of Facebook to $160 per share.
There was not one single significant factor that led to the price reduction.
A savvy investor would recognize that the current market downturn is only going to be transitory.
If you buy the shares and then wait for the market to rebound, you can quickly generate a return on investment of 25%.
Swing trading will take time.
The duration of a regular deal can range anywhere from a few days to somewhere close to a year.
Invest In Alternative Assets
Putting the $50,000 you have at your disposal into alternative assets is an additional course of action you could take, in addition to traditional investments.
People regularly engage in this practice by purchasing works of art or even uncommon collectibles such as Pokemon cards or sports cards.
Of course, there is the expectation that the value of such assets would rise over time.
You can also start preparing for retirement by investing in alternative assets through your individual retirement investment accounts.
Companies like Alto, for instance, give their customers the opportunity to invest in nontraditional asset classes such as:
- Private Equity
- Venture capital
- Fine wine
You have access to over 75 different investing partners, offering you the ability to invest in a wide variety of alternative asset classes and possibilities.
Because there are no monthly costs associated with Alto’s CryptoIRA, it is an excellent method to invest in cryptocurrency for your retirement.
The company’s primary Individual Retirement Account (IRA) product has costs that begin at $10 per month, which is not an exceptionally high percentage for more extensive portfolios.
Overall, utilizing Alto is a great option to think about if you want faster access to various asset classes in order to attempt to turn $50,000 into something more.
Related Reading: Best Crypto Savings Account – Find Out Here.
Start A Rental Business
One more low-effort way to multiply your initial investment of $50,000 is to put it to work in a rental enterprise of some kind.
There are many things that you can rent out for money, and having $50,000 at your disposal provides you with a lot of room to experiment with different business models.
Using the money to build a rental property or enhance some section of your house so that you can rent it out on Airbnb is the most obvious way to put the money to use.
If you were to use this money to finish a bedroom or a small basement, you could easily rent out the space for $80 to $200 a month or even more.
The amount you could charge would depend on the location, the time of year, and how attractive of a space you have.
Here are even more rental ideas that are worth considering:
- Listing vehicles on Turo
- Renting out storage space on Neighbor
- Renting out RVs on Outdoorsy
- Listing equipment like cameras and drones on Fat Llama
If you live in a somewhat populated location, this rental company concept is more practical for you to pursue because there are more prospective clients in such settings.
Having said that, don’t be scared to use your imagination.
People also make money by renting out items like camping sites or one-of-a-kind apparel that they have.
So, clearly, there are a lot of different ways to make money off of assets that you already have.
Put Your Funds In A High Yielding Savings Account
Putting money into a savings account typically results in a higher rate of return than other types of investments because of the low level of danger involved.
Putting your money in an account that offers a higher interest is not only a risk-free investment but also an excellent way to generate passive income over time.
Plus, the money in these savings accounts will be distributed on a monthly or annual basis.
This means that it has the prospect of growing into an even greater sum of money in the future after a period during which interest has been accruing.
You may discover the greatest deals on these bank products by using any one of the numerous brokerage websites available.
This will help you secure your funds in the long run.
Invest In Yourself
Investing in yourself is the one investment that is guaranteed to pay off in the form of increased profits for your company.
It is highly recommended that you make time for your own personal growth and development.
You can boost your income over time by making an investment in yourself by obtaining additional education, training, or certification, or even by entering an apprenticeship program.
Those who devote their own time and money to increasing their levels of expertise and marketability ultimately find that they have access to a wider variety of options.
Try taking into consideration how much money you can make in the future by investing a small amount of effort into personal development right now.
This is undoubtedly one of the better possibilities that are out there for you to explore.
Have you always thought about going back to school?
That is one approach to strengthen your skill set and put yourself in a position to earn more money in the future.
You will have the window to either get a job in a higher-paying career field if you go back to school to earn another degree or certification.
You will also be able to boost your marketability within the industry in which you are now working.
Going back to school is never a breezy decision, but if done correctly, it can become an investment in yourself that pays off in the form of increased earnings in the long run.
If you can avoid taking out student loans, your first option should be to use the free resources provided by the government.
Related Reading: Side Hustles For College Students – Check Out The Hustles Here.
Open A Retirement Investment Account
A retirement investment account is yet another fantastic opportunity for you to increase the value of your money.
Most organizations participate in either the 401(k) or the 403(b) plan, which allows employees to contribute money to a retirement account before it is taxed.
They will be able to put money away for their retirement in this manner.
Plus, their company will contribute an equal amount, which will aid the account’s overall growth over time.
Consider making the most of these free benefits, which a lot of companies offer.
It’s basically the same as giving yourself an instant return on investment simply by having more cash at the end of each year.
And that would be tax-free!
If you can, utilize all these free benefits that lots of companies offer.
Start Your Own Business
The vast majority of people are reluctant to launch their own company.
However, doing so need not be particularly challenging, provided adequate preparation and time are invested in the process beforehand.
You might also engage other people to assist you with the jobs that are more difficult or tiresome so that you are not responsible for doing everything on your own.
It would help to maintain a teachable mindset so that you may become familiar with the company strategy in its entirety.
You could attempt to establish an online business to produce additional revenue if you do not have the financial resources to engage in a physical business.
You can generate income via advertising on virtually all online platforms, the primary source of which will be affiliate relationships.
Launching your own company is a fantastic method to multiply the amount of money you already have.
Make sure that whatever business you decide to start, you are enthusiastic about it.
There will be days when things are challenging, and you will want to give up, but you have to push through those feelings and keep going.
Also, make it a point to study everything there is to know about the business you intend to start so that you can make educated choices about how to run it.
Related Reading: How To Start Something New – Learn That Here.
Purchase An Already Established Business
One thing that people might not think about is the possibility of purchasing an existing business.
Consider buying an existing company if you are in a position to do so financially.
This will make it possible for you to avoid doing many of the things that are generally required when beginning a business from scratch.
This stage includes renting office space, employing personnel, and even signing a lease agreement.
This will save you a lot of time and energy.
After you have acquired the company, the next step is to effectively manage it so that it continues to earn a sufficient amount of profit with no interruptions in service.
Because it was an existing company, there was a good chance that things would pick up much more quickly than if you had to launch everything from scratch.
Put Your Cash Into Money Market Accounts
You have the option of placing funds in a money market account.
This is widely regarded as one of the most secure varieties of investment in terms of both its liquidity and its rewards.
Buyers have the opportunity to increase the interest they earn on their assets through the use of money market accounts.
These carry no inherent risk.
They will therefore make it possible for you to turn that amount from $50,000 up to $100,000 over time by simply leaving your funds alone within these accounts.
You won’t have to stress out about losing any money at all because they are FDIC-insured.
Invest In Multiple Small Businesses
You can attempt investing in small businesses if you are still stumped about what to do with $50,000 and how to double that money.
In the past, being able to invest like a venture capitalist required a significant amount of wealth in addition to a strong network.
But now, thanks to organizations such as Mainvest, you can put your money to work by investing in expanding small businesses located anywhere in the US.
To get started investing with Mainvest, you only need $100, and you can choose from a variety of small businesses, including the following:
Real estate developments
When you provide financial assistance to a company, the amount of money that the company owes you and when it must pay it back is set by a predetermined multiple and a defined payout date.
Because Mainvest strives to provide investors with returns of 10%-25%, the company’s multiples are typically in the region of 1.4x to 2x.
It is possible to turn $50,000 into $100,000 using a multiple of two.
However, the process could take several years because of the slow pace at which the company pays off its obligations.
Be aware, however, that investing in small businesses includes some risk because companies themselves can fail.
Because of this, it is essential to perform adequate research and to always keep the potential downsides in mind.
It is true that Mainvest only accepts about 5% of the users who apply to use its platform since it has a rigorous screening procedure.
Consequently, the majority of these companies are thriving and expanding in their respective industries.
How Long Will It Take To Turn 50k Into 100k?
It will not likely happen overnight that you go from having $50,000 to having $100,000.
Depending on the type of investment you go for, it might only take a few short years, or it might take even longer.
However, you must have patience with both yourself and your venture in order to be successful.
When things get complicated, don’t give up too quickly since achieving this level of success takes time.
To maintain your motivation, it is essential to make an investment in a business that you are interested in or enthusiastic about.
Related Reading: New Ideas For Side Jobs – Learn More Here.
Final Thoughts On How To Turn 50k Into 100k
I hope this guide on how to double your $50,000 work for you will help you figure out how to put your money to good use.
Just keep in mind that before choosing an option, it is critical to think about the amount of time you can allocate to investing as well as the level of risk you are willing to take.
And, should you need some assistance in making decisions regarding your finances, don’t be afraid to go to a financial planner.