Can I double my money in 5 years?

Asked by: Corine Considine  |  Last update: February 9, 2022

What interest rate would double your money in five years? You can reverse the Rule of 72

Rule of 72
In finance, the rule of 72, the rule of 70 and the rule of 69.3 are methods for estimating an investment's doubling time. The rule number (e.g., 72) is divided by the interest percentage per period (usually years) to obtain the approximate number of periods required for doubling.
https://en.wikipedia.org › wiki › Rule_of_72
to work backward from your timing target. If you want to double your money in five years, divide 72 by five. According to the Rule of 72, it would take about 14.4 years to double your money at 5% per year.

What is the best investment for 5 years?

Best Investment Plans for 5 years
• Liquid Funds. Also known as money market fund, these are a type of mutual fund scheme, which invests the money in short-term government securities and certificates. ...
• Savings Account. ...
• Post-Office Time Deposits. ...
• Large Cap Mutual Fund. ...
• Stock market/ Derivatives.

How can I legally double my money?

Use the Rule of 72

Simply divide your rate of return by 72 and the rule of 72 will tell you how long it will take. For example, if you have a rate of return of 10% annually. The rule of 72 would equate to doubling your money in 7.2 years.

How many years FD will double?

To know the time duration in which your FD amount will get doubled, you have to divide 72 with the highest rate. For example, if the highest rate on FD is 7.05%, then the number of years in which your FD will get doubled is 72/7.05= 10.21. Thus, it will take 10 years for your FD to get doubled.

What percentage do you need to double your money in 5 years?

Similarly, if you want to double your money in five years, your investments will need to grow at around 14.4% per year (72/5). If your goal is to double your invested sum in 10 years, you should invest in a manner to earn around 7% every year. Rule of 72 provides an approximate idea and assumes one time investment.

How can I double my money in 5 years?

27 related questions found

What is the 50 30 20 budget rule?

What is the 50-20-30 rule? The 50-20-30 rule is a money management technique that divides your paycheck into three categories: 50% for the essentials, 20% for savings and 30% for everything else.

Does money double every 7 years?

The most basic example of the Rule of 72 is one we can do without a calculator: Given a 10% annual rate of return, how long will it take for your money to double? Take 72 and divide it by 10 and you get 7.2. This means, at a 10% fixed annual rate of return, your money doubles every 7 years.

Is LIC better than FD?

Fixed deposits are best for both short- and medium-term investments whereas life insurance plans are designed for long term investments. You can invest for a period of as low as 7 days in fixed deposits unlike a life insurance plan wherein you need to invest for at least 10 years. You can invest a minimum amount of Rs.

Which bank is best for FD double?

List of 10 best FD schemes for 3 years
1. Fincare Small Finance Bank. Fincare offers attractive rates of interest on the 3-year tenure. ...
2. KTDFC. A lucrative rate of 6.00% p.a. is paid for term deposits opened for a period of 3 years. ...
3. Shriram City. ...
4. Mahindra Finance. ...
5. Sundaram Finance. ...
6. LVB. ...
7. Equitas Small Finance Bank. ...
8. Yes Bank.

How can I become a millionaire?

Let's dive into how to become a millionaire the simple way!
1. Develop a millionaire's mindset. ...
2. Carefully watch your expenses (big and small) ...
3. Try to max out retirement investment accounts. ...
4. Increase your income to become a millionaire faster. ...
5. Use your money to make money to become a millionaire easier. ...
6. Avoid "lifestyle creep"

What stock will make me rich?

7 Stocks to Buy That Will Make You Rich by 2030
• Applied Materials (NASDAQ:AMAT)
• Coinbase Global (NASDAQ:COIN)
• Intel (NASDAQ:INTC)
• Altria Group (NYSE:MO)
• Novartis (NYSE:NVS)
• Pfizer (NYSE:PFE)
• StoneCo (NASDAQ:STNE)

How can I double my money in a year?

Here are five ways to double your money.
1. 401(k) match. If your employer offers a match for your 401(k) contributions, this can be the easiest and most guaranteed way to double your money. ...
2. Savings bonds. ...
3. Invest in real estate. ...
5. Let compound interest work its magic.

What should I do with 20k?

Here are 10 ways you can invest that money, including suggested allocations and other tips.
2. Invest with a broker.
3. Do a 401(k) swap.
4. Invest in real estate.
5. Build a well-rounded portfolio.
6. Put the money in a savings account.
7. Try out peer-to-peer lending.

Where should I invest in my 20s?

• Post office savings schemes. The post office is a trusted place to park your money. ...
• Public Provident Fund. ...
• Liquid Funds. ...
• Recurring Deposits. ...
• Systematic Investment Plans (SIPs) ...
• Debt Funds. ...
• Life Insurance. ...
• Not budgeting it out.

How can I grow my money fast?

10 Best Ways to Grow your Money
1. Start Early. Rome was not built in a day. ...
2. Invest having a target in mind. ...
3. Say strict no to unnecessary debt. ...
4. Risk Reduction by way of Diversification. ...
5. Know your investments well. ...
6. Offer time to your investments. ...
7. Do smart investments. ...
8. Keep your fears to the side.

How can I multiply money fast?

1. Invest in the Stock Market. When trying to learn how to double your money, investing in the stock market is the best way to increase your wealth over the long-term. ...
2. Invest in Real Estate. ...
3. Open a Savings Account. ...
4. Invest in a Business. ...
5. Pay Off Debt.

What is the best investment for 1 year?

Best short-term investment options in India
• Savings accounts. Recently, the falling repo rate regime has brought the savings account interest rates to an average of 2-4%. ...
• Liquid funds. ...
• Short-term and ultra-short-term funds. ...
• Equity Linked Saving Schemes (ELSS) ...
• Fixed deposit. ...
• Fixed maturity plans (FMPs) ...
• Treasury bills. ...
• Gold.

Will my 401k double in 10 years?

“The longer you can stay invested in something, the more opportunity you have for that investment to appreciate,” he said. Assuming a 7 percent average annual return, it will take a little more than 10 years for a \$60,000 401k balance to compound so it doubles in size.

How can I quadruple my money?

If you want to quadruple your money, just double the Rule of 72 to obtain the Rule of 144. If you want to triple your money, use the Rule of 120. To derive these rules, calculate the product of 100 and the natural logarithm of the exponent, and then look for a whole number with many factors at or above that result.

How much money do I need to retire?

Most experts say your retirement income should be about 80% of your final pre-retirement annual income. 1 That means if you make \$100,000 annually at retirement, you need at least \$80,000 per year to have a comfortable lifestyle after leaving the workforce.