9 Ways to earn more money and Double Your Income in one year

If you have been working your butt off only to get $2 raise, you are selling yourself too short and somebody is taking advantage of you. I strongly believe that you can achieve more and the sky is the limit for you. Instead of getting a $2 raise, what if you can double your income in a year? Doubling your gross income by next year is possible no matter your financial situation. Even if you are making minimum wage, you can still double your gross income by the end of the year if you follow the strategies I am going to show you in this post.

Let’s use the rule of 72 to give you a perspective of what it takes to double your money. The rule of 72 states that if you invested $x at an annual fixed rate of y%, it will take x/y years to double your money. For example, if you invested $1,000 at a 10% fixed rate, it will take 7.2 years (72/10) to double your initial investment to $2,000. If you only invest without increasing your income, you will need to get a higher rate of return and it will take many years to double your money.

What if all you want to do is to double your income this year no matter the circumstances without relying on long-term strategies? Doubling your paycheck in one year is easier than most people think. To double your paycheck, you need a strategy that uses a combination of boosting your current income and building streams of income through side hustles, investing, and smart savings. The secret about all the financial strategies I will be sharing with you is that you can easily apply all of them at the same time without overworking yourself.

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9 tips to double your income in a year

When it comes to doubling your income in a year, there are different strategies you can use. These strategies vary from one another and can all yield the same results if you can implement them the right way. While each of these strategies can help you double your income, it will be much easier to double your income by implementing multiple strategies simultaneously.

For example, you can invest in the stock market, buy index funds, or take on a side hustle, while also working a full-time job. What makes this strategy practical is that some of these tips do not require extra time to make them work. For example, opening a special CD account that pays 5% APY requires only 30 minutes to set it up. That is you spend only 30 minutes to open your deposit account and get paid every month until your CD matures. That is the kind of thinking and financial approach I am suggesting in this post.

So, what are different ways to double your money? In this article, I will go over practical ways to double your income in a year without overworking yourself to death.

Without further ado, let’s get started.

1. Get a higher-paying job

The fastest and most effective way to double your money in a year is to get a different job that pays you more money. This is because your salary will go higher while you still work the same number of hours per week.

To make this strategy work, however, you will need to carefully consider your current role, skills, and industry. Different industries require different skill sets and levels of experience.

It is possible that your current employer might not agree to double your income without acquiring extra special skills that are needed for the company. Additionally, it is always impossible to get paid double for the same job. This means you would need to take on some training and participate in extracurricular activities that improve your level of importance in the company to get paid more in the same company.

How to double your income in a year without quitting your company?

To double your income with the same company, apply for a higher-paying job within the company. You already know the company inside and out. All you have to do is convince your boss that you are worth more by providing a list of improvements and value you will bring to the company if selected for the new role. If you have recently taken special training, went to school, etc, use this opportunity to highlight how these newly acquired skills and training will make you an asset to the company.

How to double your income in a year outside of your company?

If your company does not have a position that can help you double your income in a year, leave your current company and find one that pays you double. This strategy works well when you are applying for a higher position than your current one. For example, if you were an electrical engineer II, you could aim for Sr. electrical engineer roles in higher-paying companies. This huge bump in ranking is what doubles your paycheck in one year.

Since you will be starting a new job, it is crucial to update your resume, rewrite your cover letter, and update your references.

It might also help to take a few months of training to learn/improve your skills and make you stand out. Your goal for the new job is to negotiate a salary that is double what you are currently making.

2. Pick up a part-time job

The second option to double your paycheck is to pick up a part-time job. Keep in mind that you will be working a lot of hours per week which will limit your availability to do anything else. To effectively achieve this goal, try to find a part-time job that pays a higher rate within your industry. That is picking a grocery store clerk job might not be a great option to double your income in a year as the money you make per hour is not enough to make a huge difference in your pay.

But, if you are like a computer or IT engineer, find a part-time job especially online that pays a higher rate for specific tasks. This way, a few hours you work will bring in enough money to boost your current earnings.

To supplement your overall income, negotiate a raise/bonus at your current job. Any extra money you make from your current job such as a raise, bonus, or a combination of both will make it easy to double your income.

3. Start a side hustle

One of the easiest ways to double your money is through side hustles. Side hustles are different jobs you pick on the side to make extra cash that supplement your income. What makes side hustles great is that you make up your schedule which is essential especially when you have busy hours.

The best side hustle you can pick is one from within your industry. For example, if you are currently working as a graphic designer within your current role, you can pick up a freelance side hustle online and do it in your free time. Keep in mind that this is not the same as taking on a part-time as we see in the previous section. Side hustles allow you to work when you want which is not the same as a part-time job. For example, a person who works for Walmart must go to work on their regular schedule. This is not the same case for someone who drives for Uber as a side hustle.

Picking something within your industry allows you to work less while charging higher rates. That is you leverage your skills to earn more money while working less as you don’t need to learn extra skills to get the job done.

4. Make extra cash selling used products online

Another way to double your income is to sell used products online. Selling things online is a completely different work within itself and your options are unlimited and your earning potential is also really higher.

If all you need is to double your income, all you have to do is find a product you can sell online to make money. The best way to get started selling products online is to declutter your home and sell everything that you are not using. For example, if you have clothes that you have not used for a year, you can easily sell them online on websites like ThreadUp, Poshmark, eBay, and Facebook Marketplace.

On the other hand, if you have used electronics, you can sell them online using electronic websites such as Swappa, Gazelle, Decluttr, BuyBackWorld, uSell, Sellcell, etc.

I you make your art, pots, cups, and designs, sell them on Etsy, Facebook Marketplace, and eBay.

Again, the possibilities of doubling your income in a year by selling items online are endless. It will all depend on what you want to sell and how many you can sell. The more items you can sell, the more revenue you will get, and eventually, the faster it will be to double your income.

Once you have learned how selling online products works, open your stores or join the Amazon FBA which is a fantastic way to make money without overworking yourself.

5. Save your money in interest-bearing accounts

If you are looking for an easy way to double your income in a year, start with where your money is deposited. Most keep their money in checking accounts where they make $0 in interest. Since checking accounts do not earn you anything, they are pretty much useless besides being spending accounts.

To double your money in a year, have your money deposited in interest-bearing accounts such as high-yield savings accounts. With a high-yield savings account, you can earn as much as 5% or more APY on your deposits. Another high-yield deposit account you can look into is a CD account, especially, special CD accounts. For example, if you have $150,000 in a high-yield savings account that pays you 5%, you will make $7,500 per year. While this earning alone will not double your income unless you are currently making $3,650, it is a solid income that requires little to no work. All you have to do is open the account, make regular contributions to the accounts, and collect interest payments from the bank regularly.

More interest-bearing accounts

Another interest-bearing account you can open that can help double your money in a year is the money market account (MMA). Investing your money in bonds and T-bills is also an effective strategy to double your money in a year. There are three types of bonds you can look into which are:

Government bonds. More secure but pays lower interest rates.
Corporate bonds. Risky buy pay higher rates
Municipal bonds. Secure, pay less interest, but your earnings are tax-deductible.

Again, the money you make from your deposit accounts alone will not double your income unless you have deposited a large sum of money. For example, if you are currently making $50,000/year, you will need to deposit $1,000,000 in an account that pays you at least 5% to double your money in one year. That is why you need to focus on different investments, deposit accounts, current jobs, and side hustles all at once to double your money. This is because each stream of income contributes to your overall income which is an essential step in doubling your income in one year.

6. Invest in the stock market

Investing in the stock market is another strategy to double your money in one year. Many people fear the stock market due to uncertainty and volatility. But, the truth is that there is a lot of money to be made in the stock market. For newbies, the stock market is a fast lane to losing their savings. But, for savvy investors and traders, the stock market is an effective and fast way to make money.

Due to the high risk associated with the stock market, it is essential to invest in your education and use risk management strategies. If you have no experience investing in stocks, start with a paper account and switch to a money account after learning how markets work and building enough experience. To avoid high volatility and avoid high risk stick to large-cap stocks.

With the stock market, you can invest in dividend-paying stocks or buy growth stocks with potential future growth. Even if your dividends will not double your money in a year, the money earned together with your full-time job and side hustles will easily help you double your income in one year.

Try trading(day trading-swing trading)

Another strategy you can use to double your money in a year with the stock market is to trade stocks, futures, and options. Trading is always risky regardless of your experience or what you trade. For this reason, trading might not guarantee to double your money if you are getting started. But, if you learn fast and can manage your emotions, trading can potentially help you double your money.

7. Buy real estate for rental income

Doubling your money sometimes requires unconventional ways to solve your income problems. Real estate is one of those passive income strategies that are overlooked by millions of people. What makes real estate a great way to double your money in a year is the potential for cash flow. Cash flow allows you to buy more properties and grow your real estate portfolio fast. Besides earning a rental income and cash flow, you also build equity in the property, benefit through appreciation, and have access to cash flow. All these benefits make real estate a great way to make money for savvy investors. Additionally, estate investing comes with tax benefits that are hard to beat with other industries.

If you don’t have a lot of money to start with, try househacking which is a strategy where you buy a multifamily property, live in one unit, and lease other units. You can also rent out a room in your existing home and start earning easy cash.

8. Invest in stock-based funds

Investing in stock-based funds is another way to invest in stocks that is more secure compared to investing in individual stocks. With this strategy, you can either invest in mutual funds, index funds, or exchange-traded funds(ETFs). What makes these investments great and less risky is that you will not be putting your money in individual stocks. Instead, you will be buying different investments and stocks bundled into a single product which is well-diversified, and therefore, less risky. Stock-based funds return around 10% annually which is a great return from the money that is sitting in a fund without extra work on your end.

For example, if you invest in an index fund that tracks the S&P 500 such as the Vanguard Total Stock Market Index Fund ETF(VTI), your money will be well diversified. Even if one stock inside the fund goes to zero, your portfolio will not be affected that much. Some mutual funds invest in stocks, real estate, and bonds which gives you extra diversification and protects your money.

Investing in stock-based funds alone will not double your income in one year unless you have invested hundreds of thousands or millions. However, the interest payment and dividends you earn will make a big contribution in doubling your income.

You might also like: 5 different types of portfolios: Which portfolio is right for you?

9. Take advantage of your employer’s match

Another great way to double your income in one year that most people don’t know about is taking advantage of your employer-matching contribution. Most employers that offer retirement benefits also match their employee’s contributions up to a certain percentage.

For example, your employer can match your contributions up to 6% of your gross income. What this means is that for every dollar you contribute to your 401(k) plan, you will get dollar to dollar match of up to 6% of your gross income. For example, if you make $100,000 and your employer matches you 6%, the employer total match will be $6,000(6% of $100k) which is free money.

This is why taking advantage of your employer match is one of the best ways to double your income. For example, if your income was $50,000 and you get a 6% match, you will get $3,000 for free without lifting a finger. This means that you will only have to make $47,000 to double your money. You can easily see that every dollar you make counts.