The Rule of 72: How to Double your Money (With 4 Examples Included)

So… you’re looking to double your money!

Although doubling your money is a catchy phrase and sounds very Wall Streetesque, there are a lot more complexities that go into simply “making more money”, as you are probably aware.

If you research ways to double your money, you’ll find all sorts of strategies and tips that may or may not apply to your situation.

The truth is that if you want to learn how double your money, it’ll depend on several factors including how much you’re investing, how long you’re investing for and your rate of return.

It’s also important to be aware of the risk/reward ratio: if you want higher returns, you’ll have to take on more risk.

But first, it’s handy to know about one specific rule…

The rule of 72

The rule of 72 is a simple rule that essentially tells you how long it will take to double your money. All you need is your rate of return over time, and the number 72. If your rate of return is the typical 8% from the stock market, then:

            72/8 = 9. It will take 9 years to double your money (!)

As you can imagine, the number of years drastically decreases if you get a higher rate of return.

If you’re a member of our loyalty program and enjoy returns of 16%, for example, then it will take 4.5 years to double your money. Play around with the numbers and see how long it’ll take you to reach your goal. You can also reverse the rule: what rate of return do I need in order to reach my goal in X amount of years?

The rule doesn’t work for extreme rates of return; if you want to double your money in one year, you’ll need a growth rate of 100% – not 72%.

The quickest way to double your money

If you’re trying to double your money in under a year, your best bet is searching for ways to decrease your spending and increase your income. These are activities where you have greater control and short term change is possible.

Sure, you can also consider investing in cryptocurrencies or angel investments, but the risk is always a lot higher and we wouldn’t recommend putting your life savings into volatile investments.

However, if you aren’t in a rush and are looking for long-term solutions, investments that work when you sleep and offer high rates of return are the best solution.

With something like P2P investing, you don’t need to research any companies or rebalance your portfolio, and returns are a lot higher than other investment vehicles such as savings accounts, bonds and even the stock market.

Setting up an account is free, quick and easy – and with Swaper you’ll get your returns deposited in your account every month.

4 ideas to double your money

1. Invest in P2P loans

Thanks to the power of compound interest, P2P loans are one of the investments that offer some of the highest returns. We’ve talked about the power of compound interest on this blog before: just by setting aside a small amount every month consistently for several years, you can grow your wealth to unbelievable numbers (yes, even millions).

The other benefit of investing in P2P loans is that it is incredibly easy to set up and a great way to double your money online. By using a feature like Auto-Invest, you just need to deposit your money, set up your portfolio, and sit back while your money earns a 14% to 16% return on investment.

How long before your money will be doubled?

Check out the 72 rule to find out how long it’ll take you.

2. Invest in the stock market

The stock market is one of the most popular and oldest methods to grow your wealth. By investing regularly in the stock market, you’re diversifying your wealth and are exposing yourself to some of the largest companies in the world.

Having said that, you will need to do your research in order to pick the right index fund or ETF – or be willing to go DIY and pick your own stocks. Make sure you’re not paying high fees and are using a tax-advantaged account.

The main drawback from investing in the stock market is that your return may not get higher than 8%, the average return when investing long term, which means it could take a lot longer to double your money with investments.

3. Double your savings

If you’re willing to go a little extreme, you can also look into cutting back.

By cutting more of your expenses, you can effectively double your savings. This is a popular strategy for those who want to retire early: by cutting your spending, not only will you be doubling your savings rate, but since your spending will be lower you won’t need so much to retire on.

Look through your budget to see what you can cut out, and consider looking for ways to lower large expenses such as rent, insurance payments, car maintenance, etc. If you manage to double your savings rate, you’ll be able to invest a lot more money, which means you’ll double your money at a much faster rate.

4. Focus on increasing your income

If you’ve exhausted all other methods for doubling your money and don’t know where else to go, then it’s time to go back to the drawing board and look for ways to increase your income. Depending on your situation, this could mean various things: working harder at your job to get a promotion, starting a side hustle, negotiating your salary, or taking up gig work in your free time.

It doesn’t work for everyone and it’s definitely easier said than done. But you will know yourself if working on increasing your income is something that is worth pursuing.


So what’s the best way to double your money safely?

We think it’s P2P investing – but at the end of the day, it does depend on your own circumstances.

If you’re looking for “quick money”, then start looking at your own spending patterns and income.

If you’re looking long term, it’s time to get started with investing!