4 ways to double your money, according to financial experts

There are many reasons you might want to grow your money. Maybe you're nearing retirement, or you need to cover unexpected costs or medical expenses. It could also be that your salary hasn't kept up with inflation or the higher consumer prices we're dealing with in today's economy. Whatever it is, there are ways to do it — and even double your money, in some cases.

It's all a matter of choosing the right strategies. With traditional savings accounts, for example, your opportunities for growing your cash are limited (the average APY is a mere 0.42% right now). 

Fortunately, there are other avenues you can explore, including the opening of a high-yield savings account. You could easily start earning more interest on your money right now. Get started now with Discover and lock in your terms from three months to 10 years.

4 ways to double your money, according to finance experts

Are you looking to double your money in the long or short haul? Here are four ways to make your money grow, according to financial experts.

Know your time horizon and follow the "Rule of 72"

The first step is to know how quickly you need to double your money. Is it two years, 10 years, or just by retirement a few decades down the road? Once you have that detail, you'll need to follow what's called the Rule of 72.

"The Rule of 72 will assist in determining how long it will take to double your money at a given rate of return," says Michael Morgan, president of TBS Retirement Planning. "For example, on an investment paying a 6% rate of return, if you divide 72 by six, it will take 12 years to double your money. If you could average a 12% annual return, dividing 72 by 12, you would be able to double your money in just six years."

The Rule of 72 can help you determine what types of investments or financial products can help you achieve your goal. If you need to double your financial investment in 10 years, a savings account with a 5% interest rate, for instance, wouldn't help achieve your goals. You'd need something with a higher rate of return (at least 7.2%) to make that 10-year milestone happen.

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For short-term earnings look to higher-risk investments

If you need to double your money on a fairly quick timeline, old standards like savings accounts or buying real estate likely aren't going to do it for you. Instead, you'll need to focus on higher-risk investments. 

"How much risk you're willing to take matters," Morgan says. "If you have an aggressive risk tolerance and are looking at more risky investments, you have an opportunity for higher gain, but also the risk of bigger losses. The higher the risk, the greater the rewards."

Higher-risk options can include options like cryptocurrency, day trading or investing in businesses and startups. 

"There are no safe ways to double your money quickly," says Adam Sommers, lead planner and chief investment strategist at Sommers Financial Management. "Speculation in options, cryptocurrency, or stocks has the potential to double your money quickly — but the flip side of the coin is that when speculating, your balance can just as easily go to zero. Speculation is more akin to gambling than investing."

For long-haul goals, take a well-rounded approach

If you have a long-term time horizon, you should consider a lower-risk, more multi-faceted approach. It's generally what financial pros recommend, too.

"Doubling your dough in the long haul is less about hitting home runs and more about playing small ball," says James Allen, a certified public accountant and founder of Billpin.

First, max out any 401(k) matching your employer offers. As Allen explains, "It's literally free money on the table."

Then, invest in the stock market, consider CDs, money market accounts and high-yield savings accounts, and add some real estate to the mix, too. Both of these can help diversify your portfolio and allow you to grow your wealth through different asset classes.

"Invest regularly in an S&P 500 index fund," Allen says. "It's a diverse lineup of America's biggest sluggers, delivering an average annual return of around 10% over the long seasons. With that batting average, you could potentially double your bankroll in about seven years."

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Invest in yourself

Finally, invest in the more intangible things that can improve your career options and earning potential over the long haul.

"The No. 1 way to build wealth is to invest in yourself," says Michael Wagner, COO of Omnia Family Wealth. "Depending on your degree and the field you are in, maybe that means investing in your skillset. Maybe that means going back to school and getting a masters degree or a certification to really increase your ability to earn money."

You might also consider using money to start your own business or launch a product. Just remember: This comes with some risk, so make sure you don't drain all your funds on these ventures — especially if you lack a healthy emergency fund. 

The bottom line

The right strategy for doubling your money depends on how quickly you need to do it, as well as your appetite for risk. If you're willing to take on more risk, you have the opportunity for more growth in a shorter timeframe. 

If you want to minimize the potential for losses, though — which financial experts recommend, it's best to take a longer-run approach with a diversified mix of investments and strategies.

"Doubling your money requires a balanced and disciplined approach to investing, focusing on diversified, long-term strategies," says Joseph Catanzaro, a financial advisor at Oak & Stone Capital Advisors. "While quick gains are possible with higher-risk options, the potential for significant losses makes them less suitable for most investors. Always consider your risk tolerance and financial goals before pursuing any investment strategy."