How Fast Can You Double Your Money?

Take a look at your salary slip. If you are getting RM8,000 now, when is the time you will get RM16,000 per month?
Now, check your investment portfolio. How soon can you double the amount? Is it possible to pull it off in 6 months? Three years? Ten years perhaps?

If you divide the world population into two groups, the first group consists of those who can double their money fast, which is the minority. The second group is the majority of the middle class and the poor, who either don’t think it is possible or don’t know how they can make it.
Which group do you belong?

Start with the right beliefs

Most people believe that you can double your money only if you get lucky in a lottery. Of course, we have all seen those instant millionaires and see how easy it had been for them to win that jackpot money. It hardly required any effort on their part – it was pure luck. That was it.

Alternatively, you can also try doing what Munnee did on the comic strip: literally, chop your paper money into two, divide them into two groups, and then place a mirror beside them. Double your money in a flash!
If luck is what you wish for, it might never come. Luck only comes to those who prepare.


How fast is ‘fast’?

I believe you will like to see that happens (doubling your money). The question is: When? How soon? How fast?
For super-investors like Warren Buffett, he consistently doubles his wealth every 4-6 years. For genius entrepreneurs like Bill Gates, Elon Musk and Mark Zuckerberg, it is about 1-2 years. As a matter of comparison, if you can double your money consistently within a few short years, you are on your way to joining the multi-millionaires club.

So the logical expectation is about 4-6 years for an investment to double in value. That’s about 15% annual compound return. In fact, you will be doing great still if your investment portfolio takes 7-9 years to double. Not too bad.

However, if you are aiming for 10% return per month (120% per annum), without any effort, you are asking for trouble. We had heard of some magical schemes that can deliver it to you. I would stay far away from it because there is a smell of money game and Ponzi scheme. Nothing can double your passive investment consistently every few months. You need to know that!

Then what kind of investment can deliver >10% return a year? Look into business (stocks) and properties.

Lightning Fast!

If you are striving for the 100m sprint like Usain Bolt, and can’t wait for the sure-win marathon, you need another set of skills. You need to be an entrepreneur, who can create tremendous value for the world. You need to increase your capability, keep growing and work extremely hard!
Do you have what it takes? There are sacrifices. Are you willing to compromise?
In my opinion, you don’t have to go through the sprinting route. A long-term marathon run is also good enough to enjoy an exciting life. How fast to double your money? It is up to you to decide. Just don’t lose it fast!

 

Source: KCLau [https://kclau.com]

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