The natural tendency of the money is to flow from one hand to another in exchange of goods and services. This very nature of money makes it hard for one to accumulate wealth and become rich.
The rich families or the wealthiest of people made their money by building a valuable asset that generated money for themselves and further passed down the asset and knowledge to their kids allowing them to reap the benefits.
Generational wealth is created when you strategically put money to work and create assets a lot of assets. You have to build these assets so that these assets can outlive you and become a possession for future generations.
“It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.” —Robert Kiyosaki
These quotes by Robert depicts how money function and the intricacies of the money that goes into creating wealth. Keeping the money is the most difficult part of getting rich.
This is why in this article, we will discuss how to double your money, how to create different assets for you to grow your wealth, and much more.
What is an Asset?
If you are familiar with the basic rule of accounting, the asset is nothing but that which puts money into our pocket and liabilities that take money out of our pocket.
Distinguishing between these two will help you in planning your finances knowing where to put your money and making sound decisions about your money.
You can create assets for yourself by investing your money in the right things like business, education, real estate, etc.
By doing this, you’ll be able to create a steady cash flow and at the same time increase the value of the assets.
Now, you’ve gotten a sense of what an asset is and what kind of wonders it can do, but, a fundamental question comes which you should ask yourself.
Is Cash Money an asset or liability?
The answer might surprise you. A cash which is lying in your bank account or at your home is a liability. Unless you’ve invested in an account where you are getting returns through inflation-protected funds then you are good.
Now this brings us to our next topic which is money and what money actually is.
What is Money?
This might have surprised you that the money which is lying in your bank account is not your asset, but, how come?
Well turns out there is a hidden enemy of the money known as inflation which eats away your money at a rapid rate.
In India, the average inflation rate is at 4% which means every year the money lying in your bank account or cash form loses its value by 4%.
To stop this reduction in the value of your money, you’ll have to invest this money into something that gives more than 4% growth in value.
This something can be a tax-free bond, stock market, real estate investment, etc. but the problem is that all of these things require huge capital investment.
If you do not have that then as a good financial practice, the best way to conduct your finances is to put a certain part of your income into investment and build a long-term asset for you.
Alternatively, you can take loans to fulfill the capital requirements like a home loan at a low interest rate of 7.5% can help you earn money over a long period. You also have an option to offset your rental income from the property to the EMIs.
How to Double Your Money?
Here is the list of investment tools that you can use to double your money-
Stock Market Investment
Stock Market is by far the faster way to double your money. There is an interesting trend wherein the Indian economy tends to grow double every five years similarly, the stock market size of the country in valuation is similar to that of the GDP which is $3.5 Trillion.
This shows that investor is so eager to invest in the Indian market that the GDP and the stock market both have similar numbers and both of them tends to grow more and more and at a similar rate at least in the coming decade. So, if you carefully pick stocks for yourself, then you can actually double your investment in no time.
Real Estate or Infrastructure Investment
Real Estate or Infrastructure investment is yet another area where you can double your money faster. The current real estate market in India is $264 billion and in the next five years, the projected growth of real estate in India is 20.51% CAGR.
If you have read the Rich Dad, Poor Dad then you can use his way to earning wealth. Buy a property rent it, and offset the rental income towards the EMI which you have to pay. After paying the EMI, the rental income that you earn will be an asset that puts money into your pocket.
You can repeat this type of asset generation again and again to create a series of real estate investments that put money into your pocket.
The only downside to this can be your Home loan eligibility and squatters rights issue which can put you in legal trouble. So ensure, that while renting you have proper legal measures taken at the same time.
Tax-Free Bonds
Tax-free bonds are a great way of investing in some of the best investment tools out there. As the name itself self explains, tax-free bonds are government bonds that pay interest for the investment that you are giving.
No tax will be charged on the gains that you’ll earn and after the maturity, you’ll receive your investment back.
You’ll need a Demat account to get started with purchasing the tax-free bond. Various public sector undertakings provide you with a tax-free bond option. Here are some of the tax-free bonds
| Issuer | Symbol | Coupon | Residual Maturity (Years) | Yield to Maturity (%) | Pre Tax Return (%)(31.2% income tax bracket) | Pre Tax Return (%)(42.7% income tax bracket) |
| NHAI | NHAI NE | 7.69 | 10.4 | 4.9 | 7.12 | 8.55 |
| IRFC | IRFC NJ | 7.53 | 10.2 | 4.82 | 7.01 | 8.41 |
| REC | RECLTDN9 | 8.71 | 8 | 4.82 | 7.01 | 8.41 |
| NHAI | NHAI NA | 7.6 | 10.2 | 4.63 | 6.73 | 8.08 |
| PFC | PFCN8 | 8.92 | 13.1 | 4.63 | 6.73 | 8.08 |
| HUDCO | HUDCON2 | 8.2 | 6.4 | 4.59 | 6.67 | 8.01 |
| HUDCO | HUDCON3 | 8.1 | 1.4 | 4.29 | 6.24 | 7.49 |
| PFC | 820PFC2022 | 8.2 | 1.3 | 4.21 | 6.12 | 7.35 |
| NHAI | NHAIN2 | 8.3 | 6.3 | 4.13 | 6 | 7.21 |
| IRFC | IRFCN1 | 8 | 1.4 | 3.87 | 5.63 | 6.75 |
Gold
Gold is a metal that is famously known as God’s own currency. It is the most valuable asset that you can invest in which has global recognition.
Gold is also used by the banks as an asset that they accumulate to increase their financial standing, which is why you should do this too.
The price of gold over the years has increased a lot and you’ll be able to double your money if you invest in it now. The following are the historical gold rate trends in India-
| Year | Price (24 karat per 10 grams) | Percentage Increase |
| 2000 | Rs.4,400.00 | – |
| 2001 | Rs.4,300.00 | -2.27% |
| 2002 | Rs.4,990.00 | 16.05% |
| 2003 | Rs.5,600.00 | 12.23% |
| 2004 | Rs.5,850.00 | 4.46% |
| 2005 | Rs.7,000.00 | 19.66% |
| 2007 | Rs.10,800.00 | 54.29% |
| 2008 | Rs.12,500.00 | 15.74% |
| 2009 | Rs.14,500.00 | 16.00% |
| 2010 | Rs.18,500.00 | 27.59% |
| 2011 | Rs.26,400.00 | 42.70% |
| 2012 | Rs.31,050.00 | 17.61% |
| 2013 | Rs.29,600.00 | -4.67% |
| 2014 | Rs.28,006.50 | -5.39% |
| 2015 | Rs.26,343.50 | -5.94% |
| 2016 | Rs.28,623.50 | 8.65% |
| 2017 | Rs.29,667.50 | 3.65% |
| 2018 | Rs.31,438.00 | 5.97% |
| 2019 | Rs.35,220.00 | 12.02% |
| 2020 | Rs.48,651.00 | 38.17% |
| 2021 | Rs.48,720.00 | 0.14% |
| 2022 | Rs.52,670.00 | 8.11% |
| 2023 (Till Today) | Rs.61,080.00 | 15.94% |
Lend the Money
The last but not least method that you can use to double your money is lending it to your friends or family for interest.
It is one of the oldest ways of getting your money doubled but also it is unsafe and may put a strain on your relationship so be very careful and strategic about it. Do not let your emotions overshadow your own financial needs and requirements.
Conclusion
Doubling your money needs patience and strategic thinking, you’ll have to find those assets that make your investment double.
A business can also double your investment but, this article was more focused on your putting money into work instead of you working for it.
As a best practice try to diversify your investment and build a portfolio of various assets which can increase your investment.
Instead of earning money, you should also focus on creating generational wealth for your family and friends. Planning this way will help you and your family in living a high-stand life with quality food, health, and education. All this in turn helps you earn more wealth and become more rich.
