Congrats! Having $50k to invest is a great position to be in. But how do you turn it into more money?
If you want to double $50k, you’re going to need to do some research so you don’t lose a significant amount of cash.
In this post, I’ll explore how to double $50k and turn $50k into $100k, how long it takes to double your investments, what the returns are on $50,000, and much more. Let’s get started.
What to Do Before Investing $50,000
Establish an Emergency Fund
Having an emergency fund is a great way to set yourself up for financial success and avoid financial pitfalls. Most people and families have trouble saving money for an emergency, which can cause some serious problems for your finances.
How much should you save?
Many personal finance experts recommend saving around 6 months of your normal living expenses. This should include things like your rent or mortgage, utility bills, and other vital expenses that you have each month. If you want even more security, you can stash away an additional 3 to 6 months of your expenses.
Pay Off Debt
If you have high-interest debts like a personal loan, credit card debt, or some student loans, it’s wise to pay them off before investing your money.
The reasoning is a simple math equation. If your interest rates on your debt average out to 8% annually and your potential returns average out to 8% – you should pay off debt because it is a guaranteed return. Otherwise, any money you make will need to be dedicated to paying off your debts.
13 Best Ways to Double $50k
1. Use LEX Markets to Double $50k
LEX Markets is a crowdfunded real estate platform that can be a great way to double your money.
When it comes to investing in real estate, you might think you need a significant amount of cash to get started – but this isn’t always the case.
By using a platform like LEX Markets, money is pooled together from many investors to purchase large commercial and multi-family properties that will be rented out. The income is then split up between investors.
This is a great way to gain access to an investment you otherwise wouldn’t have access to without having millions to invest.
Another massive benefit of this form of real estate investing is that you won’t have to deal with the headache of managing tenants, maintaining properties, or marketing your properties. This is all done by the team for you.
LEX Markets has shown great results returning an average of around 9% over the past few years.
With LEX Markets you can invest in real estate with as little as $250. Sign up below to get started and you can get up to $500 free with your first deposit!
2. Double $50,000 Investing in Index Funds
One of the most reliable ways to double your money is through the stock market and more specifically, index funds.
Index funds have a track record of delivering strong returns for investors with relatively low risk.
Take a look at the all time returns of the S&P 500. It’s hard to argue against that!
Index funds are a top choice for doubling $50k because of how hands-off it is. You can just purchase one of several index funds and expect to earn anywhere from 7% to 10% annually on average.
While this return might not sound like much, it will compound over time.
For example, if you have $50k, with a 7% return, it will take around 10 years to double your money.
To invest in index funds, I recommend using a platform like Acorns. Acorns will automatically round up spare change and invest it for you – so there’s no work on your part. As a bonus, you’ll get $10 completely free with the link below.
3. Make Passive Income with ETFs
Exchange-traded funds, also known as ETFs, are another great way to invest your money in the stock market while limiting risk.
ETFs are a group of stocks that are packaged together so you can easily invest and diversify your portfolio through a stock exchange. One benefit is that they are not actively managed like mutual funds, so the fees are minimal in comparison.
As companies grow and continue to make money, so will the value of your brokerage account.
It’s a tremendous appreciating asset that I highly recommend to anyone.
The average ETF return is similar to most index funds or other groups of stocks. You can expect around 7% to 10% return on your money.
Just like with index funds, you can use a trading platform like Acorns to invest in ETFs and earn passive income. Don’t forget to claim your free $10 below!
4. Turn $50k into $100k with Rental Properties
Owning rental properties is another form of real estate investing you can use to double your $50k relatively quickly.
Owning a rental property comes with much more responsibility than the other forms of real estate investing I’ve discussed.
With this type of investing, you’ll need to deal with tenants, find people for your rental property, and manage any maintenance that’s required.
But all of these headaches come with one major benefit.
Real estate investing through rental properties can return over 15% or 20% annually in some areas.
If you have $50k and are looking to build your wealth, owning rental properties can be an excellent form of passive investing.
One major roadblock many people have when deciding to purchase an investment property is the down payment that is required. It’s common to need 20% of the property’s selling price as a down payment. In some cases, this can amount to over $25,000.
With rental real estate investing your properties can make money through several methods.
Between rent payments, appreciation, and mortgage pay-down – your income can swell rapidly with this asset class.
As a bonus, there are tax benefits that come with owning rentals that you don’t get with other forms.
For example, you can depreciate your property over 30 years to reduce your taxable income which is a major benefit.
Ultimately I highly recommend rental properties to double $50k. You can choose a vacation rental, or a standard long term rental to make passive income and grow your money.
5. Invest $50k in REITs
If you want to invest in real estate without the headache and stress that comes with owning rental properties, another option is a real estate investment trust.
REITs are essentially a group of real estate investments that are bundled together and traded openly on the stock market. It’s similar to how crowdfunding platforms work but you don’t have to create another account with a third party site.
REITs can also have a lower initial investment than many crowdfunded real estate platforms. For example, you can invest in a REIT for around $10 with Acorns, but you’ll need $250 to invest with LEX Markets. Finally, the last key difference is the liquidity of each investment.
Some crowdfunding platforms have lockout periods where you cannot withdraw your money, but because REITs are traded on the stock market you can buy and sell your shares whenever you want.
The returns tend to be slightly lower than other forms of real estate investing, but they also have slightly less risk because of their diversity.
I would recommend investing a portion of your $50k into a solid REIT to diversify your portfolio.
6. Use Mutual Funds to Double Your Money
Mutual funds are another stock market investment option to double $50k.
Mutual funds are very similar to ETFs and index funds in that they are a large group of stocks packaged together.
When comparing mutual funds to other stock investments like index funds or ETFs, there tends to be one main difference.
Most mutual funds are actively managed. This means that the fund is operated by a group of investment professionals that decide what stocks to include in their fund.
While you might be thinking this will give you an edge over other investments, it will typically come with a cost. Mutual funds have larger management fees compared to index funds or ETFs. These fees can sometimes be offset by stronger performance, but it’s never guaranteed.
Ultimately, choosing a mutual fund to invest in can be an easy way to double your money with $50,000.
7. Double Your Money Blogging
Blogging is one of my favorite ways to make money online and it can easily double your $50k investment.
You might be thinking “Okay, but how do I actually invest $50,000 into a blog or website?”
Well, you have a few options.
You can purchase an existing blog or website that currently makes money, or you can build your own blog.
Depending on your skills, there is no right or wrong answer. If you want a “safer” investment – building your own site is probably the way to go, however, this can take much longer to double your $50,000.
If you want a faster way to double your money, purchasing an existing site and growing it could be a better option.
There are many types of blogs that make money ranging from personal finance to video games. Blogs make money through many methods. The most common are display advertising and affiliate marketing.
The amount of money you can make from an online business or blog is quite limitless. Some bloggers make over 7 figures each month from their sites. Talk about some serious cash!
One of my sites earns over $6,000 a month from display ads alone!
8. Turn $50k into $100k Flipping Houses
You’ve probably seen countless home flipping shows on television and wondering if people really do it.
The truth is, yes! People can make very good money from flipping houses.
Flipping homes will require a large amount of cash to get started, but if you have the money available, it can be a very profitable venture.
To flip homes, you’ll need to start by purchasing a home below the market value. Typically these homes are distressed and need some remodeling.
Once you acquire the property, you’ll need to refurbish it and bring it up to a good condition.
Finally, you’ll need to list the property for sale to make money.
Finding and negotiating deals is one of the key parts of flipping houses. If you have trouble with this part, it might be better to invest your money elsewhere.
It’s also beneficial to have some woodworking and electrical skills so you can make improvements to the home yourself to save money.
You can also convert your flip into a real estate investment property to double $50,000.
If you want to make more money – obtaining your real estate license can be beneficial to reduce fees when selling.
Every market is different, so be sure to do your research before going all-in with flipping houses. You can check out the video below for more help flipping properties!
9. Earn Passive Income with Bonds
Looking for a relatively safe way to turn $50k into $100k?
Bonds can be a safe and easy way to grow your money without a ton of risk.
There are several types of bonds you can invest in depending on your risk tolerance. For example, government or treasury bonds are considered more safe than corporate bonds.
While you aren’t going to see massive returns by investing in bonds, you can balance your portfolio by allocating some of your money to bonds.
One of the best things about bonds is you can choose how much risk you’re willing to take.
For example, if you’re looking for a larger return – you can invest in a corporate bond that has more risk.
If you want a safer option, choosing a long term government bond is a great option.
Check out the video below to learn how to invest in bonds!
10. Consider Cryptocurrency
Cryptocurrency has become more and more popular over recent years but there are plenty of investors staying away because of how speculative it can be.
It’s common to see swings in value of 5% or more throughout the day, so you’ll need to be able to tolerate the risk and volatility if you choose this investment.
That said, some financial advisors recommend allocating a small portion of your money into crypto so you can potentially see the upside while limiting losses.
11. Invest Safely with a High Yield Savings Account
Another safe way to double $50k is through a high yield savings account.
While traditional savings accounts will pay interest rates less than .1%, many high yield savings accounts will pay 10 times that amount.
Don’t get me wrong, you’re still not going to beat the stock market when choosing to grow your cash in a high yield savings account – but it’s much more safe.
These savings accounts are insured by the FDIC, meaning if something happens to the bank – your money is insured so you don’t lose it all.
My favorite account is through CIT Bank. You can create your account below to start growing your money in no time!
12. Consider Alternative Assets
There are tons of alternative assets you can use to build wealth and grow your net worth.
For example, you can invest in farmland with AcreTrader to grow your money.
Another great choice is investing in fine art with Yieldstreet. Fine art has a record of increasing in value over time making it a great place to store your money.
Finally, another option is investing in fine wine with Vint. Wine has actually outpaced some stock market investments over the past 5 years so it’s a solid option you should consider.
These assets are a great way to balance your portfolio and optimize your returns.
13. Invest in Retirement Accounts
If you don’t need access to your money soon, investing in retirement accounts like a 401k or IRA are perfect options to turn $50k into $100k.
There’s a massive advantage to these accounts when compared to other stock market investments.
Because of the tax advantages these accounts have, there are caps to how much you can contribute to them each year.
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How Long Does it Take to Double $50k?
The length it takes to double $50k will depend on the rate of return you can make each year.
By using the rule of 72, you can pretty easily determine the amount of time it takes to double your money.
The rule of 72 states that the amount of time needed to double your investment is 72 divided by your rate of return.
For example, if you invest $50k into the stock market with an average return of 10% annually, it would take just about 7 years to double your money.
If your investments perform better, it might take less time to 2x your money, but if they perform worse, it’ll take longer.
What is a $50,000 Investment Return?
The returns on your $50k investment will ultimately depend on how well your investments perform each year.
With a balanced portfolio, it’s common to grow at a rate of 7% to 10% annually (but this can change based on several factors). This means that your $50,000 investment would net you anywhere from $3,500 to $5,000 for the first year.
Here is a chart showing how your money will increase exponentially over time with a 10% return. You can see that after the 20 year mark, the return starts to increase more dramatically.
What is $50k Invested for 10 Years?
If you invested $50k for 10 years in an index fund or ETF, and assumed a return of 8% annually, your balance would be equal to $107,946.
Final Thoughts on How to Double $50k
There are many ways to double $50k. Whether you choose real estate, starting your own business, or investing money in cryptocurrency – your bank account will certainly thank you.
It’s completely possible to double $50k in 10 years or less with the right strategy and patience.
Looking for other ways to grow your money? Check out these posts:
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