Are you looking for the best way to make the kind of money that could pay off all your debts in a short amount of time? As a rule of thumb, if an investment offers large returns in a short amount of time, it usually means it is going to be risky. But the rewards of such an investment can also be very lucrative, with some of them offering as much as double the return of the principal amount invested in the first place. Do bear in mind that for such investments to work out, you need to be vigilant when making the decisions because the rate of such investments succeeding is not as high as their failure rate.
1. Learn About the Rule of 72
Regardless of what investment tool you’re using, a useful way of determining the time frame in which you can earn the kind of money that can set you on a path for financial freedom will depend directly on your investment. Suppose you’ve invested in an instrument that promises a fixed annual interest rate. In that case, you should divide the number 72 by the promised annual rate of return. The number you will get will roughly approximate the number of years that your investment will take to double up. This is one of the most common and old-school ways of duplicating your initial investment. Many investors live by this rule and use it in combination with compounding interest to earn massive money just via investments.
2. Investing in Options
If you think you have a good instinct for timing the market, or your investment advisor has a track record to indicate the same, then you could make a big buck by sheer power of projection. For this to work, an investor may purchase options in the stock or commodity equity market for a future date with a specific price. The idea behind this kind of purchase is that within a certain timeframe, the product’s or stock’s price will grow significantly. In case that doesn’t happen, the investor does not have to sell the option security immediately. But if it does work, it can be a very rewarding experience. This is a high-risk investment trade, and generally, timing the market is discouraged by most professional traders for the simple reason that it is too risky and dependant on too many factors.
3. Become A Venture Capitalist
Again, you’re going to need not only an instinct for gambling with venture capital but also a strong business acumen. Investing in a startup can be a gamble because sometimes, the projections of the business team of a startup just might not land well within the actual market. If you managed to locate one such gem that can multiply your money, you’d be very lucky. It’s best to holistically assess a startup’s potential beforehand to determine whether it can actually pay off the bills or not; otherwise, you’re better off trying a fast payout prop firm.
4. Dabble In Foreign Markets
There are foreign economies that are emerging as the wealth gets distributed across the globe. If you live in such a growing economy, investing in instruments like government bonds or other industrial and commercial sectors where the growth is booming could be very useful for you in the long run. However, it is rare for these economic growth spurts, so keeping an eye out for the right growth environment and deftly investing at the right time can make you rich. It will require you to have some background knowledge of the political lobbying done by commercial entities.
5. Consider REITs
Another solid source of investment for you could be real estate investment trusts. These trusts invest in real estate projects on your behalf; you don’t have to own individual properties, and they can provide higher dividends in a relatively shorter amount of time without your earnings being subject to government taxes. However, beware that just like ups and down in the real estate market are connected to a host of factors, REITs are impacted by a changing economic environment as well. So there might be times when your investment doesn’t pay off.
6. Investing in High-Yield Bonds
Regardless of whether high-yield bonds are issues by the government or a high-debt company, they can instantly provide you with a massive return on investment. However, these are not a safe option given that you might face the potential of losing the principal amount invested as well. This option is usually more lucrative for people compared to the regular bond issues by the government at an exponentially low rate of interest. Beware that if a bond offers an initial return of up to 15-20%, the seller might just be bluffing you, and you could use a potential investment in it.
Conclusion
If you want big money and you want it fast, it is achievable, but it comes at a higher risk as well. It is common for people to opt for such options and lose quite a bit of money. Relying on fast trading firms that offer mini challenges can be a better approach, or just getting a seasoned investment advisor on board could also be game-changing.
