Do you want to make twice as much money in a year?

Practically, it is hard to double your money quickly with a bank account, even if you get higher interest rates. People who want to double their money often have to take risks or follow some strategies. That’s why a few people would ignore doubling money for the risks involved.

But depending on your risk tolerance and with enough time, doing that might not be so difficult. There are actually several ways to make this happen. You don't need to invest money into risky trades to make it double. If you are patient, you can get the job done with a carefully balanced portfolio or even with one low-risk bond.

Don't give up if you're not getting as much money as you want or deserve. If you use the right strategies, you may easily make more money and even double your income within a year.

Steps to Financial Success: Strategies for Doubling Your Income

There isn't any fixed solution to double the income for every person. The strategies you choose might depend on your current financial condition, your risk tolerance, and how patient you are.

You might find a suitable strategy from the 13 ideas. But if you have any confusion, then you must consult with a financial advisor.

1. Pay off your debts first

If you focus on earning more and ignore paying off your debts, the interest you pay might eat up all the revenue you make. You may even incur losses and end up with more debts.

In many situations, paying off debt actually increases your monthly cash in hand. Suppose you get $5,000 monthly after taxes and pay $2,000 on debt payment. If you paid off your debt, you may save $2,000 a month and have a total of $5,000 cash in hand. It happened because paying off debts makes your cash flow better. So, choose any debt relief option that suits your financial situation, and get out of your debt burden ASAP.

2. Get the unclaimed cash

Don't leave your money in an account that someone else might claim. Visit MissingMoney.com to look for money that was sent to you. The National Association of Unclaimed Property Administrators powers this site. You might be able to find some unclaimed cash and use it as needed.

3. Get a side hustle

Apart from your 9 to 5 job, a side hustle may help to grow your income. Here are some ideas of side hustles that may help double your money within one year:

• Doing Freelancing work (like web design, writing, or graphic design).
• You can teach (English or another language) online.
• Creating content that drives ad revenue (e.g., YouTube videos).
• Working as a driver for a delivery service like DoorDash or Instacart.
• Using an Etsy shop to sell handcrafted items.
• You can drive for Uber or Lyft.

You may discover more ideas based on your skills. So, develop your skills and decide how much time you can invest and how much money you can spend initially.

4. Monetize Spare Rooms with Short-Term Rentals

According to Yoana Wong, Co-Founder of Secret Florists, people may use their spare room or property for short-term rentals. Choose a reputable platform, create an appealing listing, and set competitive pricing. Provide exceptional hospitality to attract more bookings.

Subtly overlooked details include understanding local regulations, maintaining property cleanliness, and optimizing the listing's ranking through positive reviews and responsive customer service.

5. Rent out your parking spot

In big cities, convenient parking is worth its weight in gold. If you own a personal parking space but live in an area with plenty of street parking, consider renting out your space for a month. You could also offer up your own driveway. Use the money you make to pay off your car or save for a down payment on some new wheels.

6. Save in interest-generating accounts

You may lower your financial risk and grow your income by saving in high-yield savings accounts. If you wait for a while, the compound interest will grow your funds. As a result, you can see exponential growth in your finances.

There’s a popular formula called the rule of 72 that can determine the time of double return:

The formula is - 72/Annual rate of return

For example, if you had a 4% annual rate of return, then it would take - 72/4 = 17.5 years for you to double your money. Remember, the rule of 72 is less accurate for higher rates of return.

7. Buy an S&P 500 index fund

A Standard & Poor's 500 index fund is a good strategy to double your money. Stock funds are riskier than bank CDs and bonds but safer than individual stocks. The S&P 500 includes 500 of America's largest and most profitable companies, making it a good long-term investment.

Long-term, the S&P 500 returns roughly 10% yearly. You may quadruple your money in just over seven years, on average. The return in any given year may be significantly greater or lower than the average. The S&P 500 also had long losing streaks.

8. Use 401(k) employee matching

Your company may match your 401(k) contributions. Since investment returns could increase your earnings, this is one of the quickest strategies to double your money and increase retirement savings.

Your company may match 100% of your 401(k) contributions or 50%. Other limits on matching may include matching only 6% of your pay.

Your company may match 100% of your contributions up to 10% of your pay. For example - if you make $3,000 monthly and contribute $300 to your 401(k), your employer will add $300. Money doubled instantly!

9. Sell your stuff

According to reports, the average U.S. home contains 300,000 goods. So you may sell some of your unused stuff and get more money. You can arrange a garage sale or sell old second-hand clothes in thrift stores.

You can go online and sell your things quickly. You might have to pay packaging and delivery costs. You can sell on Craigslist, eBay, Poshmark, and Vinted.

According to your personal preferences, the amount you may earn can be useful for contributing to an emergency fund, paying off credit card debts, building your nest egg through retirement accounts, or increasing funds in your savings account.

10. Buy real estate

Buying real estate is always a secure investment to build wealth. The value of a property usually doesn't fall, so it is called a lower risk investment. But remember, mortgage interest and property maintenance may fluctuate and can slow money growth. Talk to a real estate agent before buying a property.

11. Buy cryptocurrencies

Like stock market trading, you can buy and sell cryptocurrencies. Bitcoin prices usually may fluctuate and give investors a pretty good scope to earn high profits. But the trade should be at the correct period.

Despite its huge profits, the crypto market is volatile. For that reason, crypto investing is a high-risk investment. So, you must discuss all the details with your investment advisor and decide what to do next.

12. Leverage Skills for Higher Paying Jobs

Doubling your income in a year is doable, but it's definitely a challenge. It's easier if someone has a relatively lower income. Going from $100k to $200k is a pretty tall task; however, if you're making $40k a year and have some skill and experience, it's not outside the realm of possibility that you could land a job tomorrow making $80k.

John Frigo, e-commerce manager of Best Price Nutrition, said - “Side hustles or starting a business can be helpful, but not everyone has the time or resources for that. Personally, I made investment decisions and started own business years back when I had a current job making $27k a year. Within a year, my business was making $30k a year, so I doubled my income, and within two years, the business was doing $300k a year, at which point I left my job and worked the business full-time”.

13. Grow Income with Affiliate Marketing Strategies

Leverage affiliate marketing by joining relevant affiliate programs and promoting products or services through various channels. Create engaging content and earn commissions for every sale or lead generated through your affiliate links.

Develop a strategic marketing plan and focus on attracting a targeted audience. Consistently analyze and optimize your performance by tracking conversions and adapting your promotion strategies.

Roy Lau, Co-Founder of 28 Mortgage elaborated with an example - “choose a niche like fitness and join affiliate programs of fitness brands. Create a website or a blog where you review fitness products and provide valuable content. Promote these products using your affiliate links on your website, social media platforms, and email marketing. As your audience grows, so does your potential to earn commissions from the sales made through your links”.