4 Simple Ways Investing Can Double Your Money
To be successful with investing doesn't require perfection; in fact, getting the basics right and knowing a few key details goes a tremendously long way. Perhaps the better news is that there are a number of ways to supercharge your investments that require very little technical knowledge of finance. Plenty of ordinary people are able to double their money by making a few simple and practical choices. Below, you'll find four ways investing can double your money with only minimal effort.
The primary concept behind investment growth is compounding: Your portfolio will earn returns more and more rapidly if you periodically add to it and leave it alone. Put another way, as your investments grow, they will continue to earn more simply because they have grown. The sooner you start investing, the sooner compound interest will take hold.
It's also advisable to reinvest dividends along the way. If the stock market happens to be down when a dividend is paid, you'll be adding shares at a discount. As a result of reinvesting dividends, you'll own more shares and be paid a larger dividend in the next period. This process repeats then continues on, generating ever-larger dividends and amplifying your portfolio balance.
Source Fool.com
