4 Proven Ways to Double Your Money | personal financing
Double your money once, and turn $1,000 into $2,000. Multiply it again, and it becomes $4,000. The next doubling gets you $8,000, the next doubling $16,000, the next doubling $32,000, and then $64,000 after six doublings. Using a base estimate of 72, your early invested money will likely be about six times as likely in a typical career, making this early money very valuable to your plan.
#2: Hire your boss and Uncle Sam to help get there fast
When you invest in a traditional-style 401(k) plan, you get an immediate tax deduction based on the amount of your marginal tax rate. If your 401(k) also offers a match, the combination often adds up to an approx. Double your money instantly.
Here’s how that works. Depending on your income, the states in which you live and work, and your enrollment status, the tax benefit can be somewhere around 22% federal and 3% statewide — or 25% total. Additionally, matches vary for different companies, but a typical match offers 50% of your contribution amount, up to a certain percentage of your salary.
If you put $1,000 into your traditional 401(k) and get a 50% match, that’s $1,500 total that goes into your account. If you are in the 25% aggregate marginal tax bracket, your $1,000 contribution represents only $750 of spendable cash.