A good credit score makes it super easy to get loans & other important services. Let’s do a deep dive into how long does it take to build credit, why is it important & how to get started.

How long does it take to build Credit?

Building up credit takes patience and discipline. There is no magic pill to improve your score overnight, but you can take concrete action to speed up the process and ensure your score does not detiorate further. But, how long does it take to build credit? To build credit score, you need to take credit either through loans or use a credit card. It will take approximately 6 months of credit activity to establish history for a FICO credit score. 

Why is building credit important?

Here are some reasons why is building credit important  – 

• Before you buy a house, your mortgage providers will check your credit score. Low credit score can result your application being rejected or higher interests rates.
• Some of us apply for car loans. Your credit rating will affect if you qualify for car loan. A higher credit score will qualify for a higher loan amount and lower interest rate.
• Some employers conduct credit checks as part of the recruitment process. If your credit check reports are adverse, the prospective employer may be hesitant to hire you.
• Starting a business requires substantial capital. If you want start a business you need a business loan. A good credit score is required for a business loan.
• Many utility service providers like electricity, cable, telephone, and water providers will check your credit score before offering you service.

Also read: How to become financially independent? | 10 Best ways to gain financial freedom

How does credit work?

Credit report contains history of dealing with credit. There are three credit reports issued by three national credit agencies – Experian, Equifax and TransUnion. The credit agencies or bureaus collect information from lenders who report it.

The agencies collate and organize the information into tradeline (credit report). The report can contain information like your payment history, monthly payment, balance, original loan amount, and more.  Financial institutions are not required to report account information to the credit agencies.

How is credit calculated by FICO?

How is credit calculated by FICO? FICO Score in the credit report is calculated using different components of credit data in your credit history. The credit data can be categorized in five broad categories – 

• Payment history (35%)
• Amount Owed (30%)
• Length of credit history (15%)
• New credit (10%)
• Credit Mix (10%)

The FICO score considers the positive and negative aspects in the credit report. 

When does fico score update?

When does FICO score update? You can expect your credit score to update once a month or at least every 45 days. But it can be updated more frequently if you have multiple financial products. Your creditor may not send your payment details to FICO immediately. Every time your creditors send information to the credit agency, you score gets updated.

What is considered a good credit score?

You may want to know, what is a good credit score? A good credit score may differ depending on the agency. If your score is  Here is the range –

FICO score

• Exceptional: 800 to 850
• Very good: 740: to 799
• Good: 670 to 739

Here is the range for VantageScore

• Excellent: 781 to 850
• Good: 661 to 780

Also read: Reddit personal finance | 21 Best Subreddits on Personal Finance

How long does it take to build good credit?

Whether you are starting from anew or after a financial problem, you may be wondering how long does it take to build credit? Or how long does it take to build credit from nothing? It is easier to build your first credit score than repair one. The good news it does not take long to build up credit. It takes three and six month of credit activity for the credit score to be calculated. It may take longer for you to build a great score.

What does your credit score start at?

What does your credit score start at, when you start building your credit? Everyone starts with no credit score i.e. it does not exists. It is calculated when a potential lender requests checks on your creditworthiness. Since there is no history, there is basis for the information to be calculated, so will not have a score at all.

How long does it take to get approved for a credit card?

If you are applying for your first credit card you may wonder, how long does it take to get approved for credit card? It will largely depend on how you apply for your card. You can apply for a credit card online, by telephone, or by mail. Irrespective of the method, you are expected to fill out personal information like name, address, social security number, and employment status.

You may get approved immediately if you apply online and you meet the credit requirements. It may take a week or longer if you are on the borderline, card issuer may review your application which could take a week or longer. Phone and mail application take longer to get approved.

How to start building credit for the first time?

If you are starting your credit journey, you may need some guidance on how to start building credit for the first time. You need to understand the fundamentals. Credit score represents if you likely to pay back your loan. The score is calculated based on information in your credit report.  

Here are our top tips –

• Apply for a credit card – if you do not have a credit history, you may not able to get a traditional credit card. You can opt for a secured credit card. You will need to make an initial deposit. If you make timely payments you, you can start building positive credit history.
• If you have a friend or family who trusts you can become an authorized user with their card. You can make purchases, but the card holder is responsible for payments. You can potentially benefit from the primary account holder’s history. On the flip side negative actions can adversely affect the primary account and your history. 
• You can set up joint account or cosign a loan. If you cosign a loan you are also responsible about payments.
  Late payment or negative actions can affect yours and the co-signers credit. 
• Credit unions may offer small loans ranging from $300 to $1000. You can avail of small loans to build credit history.

Also read: How to become financially independent? | 10 Best ways to gain financial freedom

How fast can you build credit?

How fast can you build credit is subjective. Building a credit score from scratch can take 1 to 6 months. It can depend on the credit agency evaluating your score. You can establish VantageScore within a month or 2, while FICO score takes around 6 months to generate. You can build your score quickly if you pay your bills on time. Conversely, a single delay in payment can damage your score. You can build credit with a credit-builder loan or secure credit card.

How to get a 720 credit score in 6 months?

If you are serious about how to get a 720 credit score in 6 months, you need to make concrete plan of action. Here are some steps you can take-

• Study your credit report thoroughly and flag inaccuracies if any. Typically errors or inaccuracies may be wrong name and address, incorrect payment dates, identity theft, furnisher errors, and re-aging old debts. Compare reports from the other bureaus to cross-check if the errors are in their reports as well. You can send dispute letters to the bureaus.
• Collection agencies can be open to negotiating and settling your debt for a lesser amount. Be sure to collect a letter in writing that the debt is closed. A settlement will be less positive than a full payment. 
• If you have average credit score like 580 credit score, you should opt for a secured credit card to help you build a new credit line. Remember to pay your bills before the due date. 
• Adding an authorized user on your account can improve your score. Be sure to add someone with 690 tp 850 credit score.
• You can ask for an enhanced credit limit. Higher credit line may improve your credit score. 
• Set automatic payments to pay credit on time.

What’s a good length of credit history?

The length of credit history means how long your account is open. Your credit history begins when you get your first credit card or take out first loan. Usually, the longer credit history translates to better credit score, especially if you have positive credit score.  What’s good length of good history? Seven years is considered to be a good credit history length. After the period most negative items fall off the history. The period does not guarantee a good score.

Also read: How much money should I save before buying a house?

How long does it take to rebuild credit?

It can be disheartening to see your credit fall after a financial setback. Distruptions can be minor as a missed mortgage payment or something major like bankruptcy. The good news is you can rebuild your credit with patience and consistency. How long does it take to rebuild credit? FICO study tabulated the average time it takes to get back to original number after a negative mark.

What hurts your credit score?

What hurts your credit score? Things that hurt your score are –

• One late payment with a delay of 30 days can hurt your score.
• Late payment on utilities, rent, phone, or loans can impact scores.
• Creditors make a hard inquiry on your account when you apply for a loan. A hard inquiry can adversely affect your ratings. 
• Canceling your credit cards can reduce your total credit amount but decrease the credit utilization ratio. 
• Carrying one credit card may be convenient, but transferring your credit to one credit card is not beneficial. 
• You may cosign a loan with a good credit score to help someone with an average or poor score. You assume responsibility to pay the loan and if there is a default on payment, your score gets affected.
• If your spending is approaching your credit card limit, it can hurt your credit score.

Also read: How to double your money | 20+ ways to double your money

Best way to rebuild credit

You need to be consistent when you want to rebuild your credit. Look at reducing debt and adding positive information to your history. The best ways to rebuild credit are –

• Review your credit report and dispute any information you believe is inaccurate or could be fraudulent. Analyze what is hurting your score and how to improve it.
• You should pay your monthly bills on time. Prioritize the bills that impact your credit scores directly, such as credit card bills and loans. 
• If high utilization is hurting your credit rating, start paying your credit card debt. Consider taking a personal loan to secure your credit cards and lower your credit utilization ratio. Interest rates on loans are lower than on credit cards. 
• You can consider taking a secured credit card or credit-builder loan if no accounts are being reported to the credit bureaus. 

How to improve credit score in 30 days?

Here are steps on how to improve credit score in 30 days- 

• Decrease your credit utilization – Your credit utilization ratio should be below 30%, decrease your credit utilization ratio by making a large payment.
• Increase your credit limit – You can improve your credit utilization ratio by improving your credit limit. 
• Get a balance transfer credit card or peer-to-peer loan – If your credit card debt becomes large, consider applying for a balance transfer credit card or a peer-to-peer loan.

Also read: 25 Essential questions to ask a financial advisor | Know your advisor

Common questions on establishing credit

Credit is a complicated subject, and understanding how to build credit is confusing. Learn what bankers or lenders are looking for when they examine your credit score and take concrete steps to build credit. Here we answer some common questions on establishing credit.

When should you start building credit?

We are under the misconception that we need not worry about credit till we start working and look for loans to buy cars or property. When should start building credit? Credit starts affecting our lives as soon as we become adults. Look for ways to build your credit when you are 18 or maybe younger. Good credit history can improve job prospects and lower your car insurance premium.

How many credit points do you gain a month?

How many credit points do you gain a month? Depending on your credit history, a 15-20 point shift could mean the difference between being approved or rejected. There are no shortcuts to build your credit history and score you can boost quickly and add 100 points to your credit score in 30 days.

How many credit cards should I have to build credit?

There are risks associated with having too many credit cards like it makes your debt repayment difficult. There is no simple answer to the question, how many credit cards do I have to build credit. There are advantages to having more than one card. Having multiple credit cards can help give your credit utilization ratio low. Experts recommend you should avoid using more than 30% of the ratio at a given time. 

How much does self lender raise your credit score?

Everyone has a unique credit profile, and there is no easy answer to how much does self lender raises your credit score. The average credit score from a Self-Builder Credit Builder Account is 32 points. The impact of your Credit Builder loan will depend on your credit history, whether you pay on time, and how long you operate the account.

Does financing a phone build credit?

Does financing a phone builds credit. Financing a cell phone may help you build credit if the creditor reports your account and payment activity to the credit bureau. When you ask for finance on your phone, the creditors may check your credit. You will have to follow through on payment because it can show up on your credit history and lower your score. 

Is no credit good credit?

People wonder if, is no credit good credit? Having no credit or bad credit can complicate your financial life. Having no credit means you have never applied for a loan, credit card, or any financing before. You have no credit rating with the major credit rating agencies. You may find it difficult to get a credit card or loan and may have to pay the higher interest rate and unfavourable payment terms.

Also read: Estate planning attorney | Things know before hiring an estate planning attorney

Can you build credit without a credit card?

Can you build credit without a credit card? yes, you can build a credit score without a credit card. Other than credit card companies, credit bureaus report your credit score. You can build credit by-

• A phone name in your name, your payment history may be reported to credit bureaus. It will also depend on the type of contract and the phone company.
• Rent payments can be reported to your credit bureau.
• You can request to become an authorized user on another person’s credit card.
• Payments towards your student loan are reported to the credit bureaus.

How fast will a car loan raise my credit score?

The answer to the question, how fast will a car loan raise my credit score will depend on your present credit report. If your credit history is complicated, your credit score can dip initially. Don’t panic if your score drops after you take a car loan. A hard inquiry impacts your credit score and decreases your credit score by two points. Ensure timely payment to boost your credit score.

Do you need a job to get a credit card?

If you are wondering, do you need a job to get a credit card? No, you can get a credit card if you are unemployed as long as you have access to income. Credit cards companies are more interested in your income than your job. They examine your credit history, credit score, and existing debt. 

Options, if your income is not enough – apply for a secured credit card, or ask someone with a good credit score and steady income to cosign your credit card, or become an authorized user on somebody’s credit card.

Do store credit cards build credit?

The answer to the question, do store credit cards build credit is yes. Store credit cards can help you build your credit score if you use them responsibly, pay at least the minimum every month and keep your balance low. To build credit you should ensure the card issuers report your credit activity to the credit bureaus. Consistent on-time payment will improve your credit score.

Also read: How can you reduce your total loan cost | Paths to debt-free life

How much credit should I use?

Credit cards are convenient, and if you use your card responsibly you can build your credit score. Overusing your credit card can negatively impact your score. How much credit should I use can be confusing? To answer this question, you need to understand your credit utilization ratio. The ratio measures the percentage of credit available i.e. divide the current balance by your credit limit. 

Ideally, keep your credit utilization score as low as possible and should never exceed 30%.

What bills help build credit?

What bills help build credit? Your credit score shows how you manage to pay your bills – specifically your debt. Generally, monthly bills (telephone bills, cable bills, and utility bills) do not impact your credit score, but can negatively impact your score if the company sends your bills to collection agencies. Credit scores decrease sharply once the collection agencies report your dues to the credit bureaus. When to pay credit card to build credit? Your credit card due date indicates the end of the billing cycle and you need to pay up.

Shubha Roy

Shubha writes blogs, articles, off-page content, Google reviews, marketing email, press release, website content based on the keywords. She has written articles on tourism, horoscopes, medical conditions and procedures, SEO and digital marketing, graphic design, and technical articles. Shubha is a skilled researcher and can write plagiarism free articles with a high Grammarly score.

Looking for the best ways to attain financial security for yourself? This post will show you how to become financially independent.

How to become financially independent

Becoming financially independent is the goal many people want to achieve. Financial independence means saving, investments, and money to pay for the standard of living you want for yourself and your family. You want your saving to grow for contingencies or to follow your passions.

Financially independent meaning

Financially independent meaning is to have enough money to pay for your living expenses without having to be employed or dependent on others. It means having a passive income. There are several ways to become financially independent.

Each method has advantages and disadvantages. If the statement, I want to become financially independent resonates, you need a sound financial plan and budget. Once, you have a clear picture of your current expenses and income you can take concrete steps towards your financial goals.

Relevance of becoming financially independent

The relevance of becoming financially independent is as follows-

• Job security is an illusion and there is always a risk of losing your job. What does it mean to be financially independent? You are not trapped in the rat race and have the freedom to follow your dream opportunities.  
• Financial independence allows you to help others. Once you are economically independent, you can look for ways to help your community. You can use your expertise to solve complex problems.
• Once you are financially independent, you have the resources to splurge on your dream car or house. 
• Financial independence gives you the flexibility to structure your work to suit it.

Also read: 25 Essential Questions to ask a financial advisor | Know your advisor

How much money do you need to be financially independent?

A common question asked by many is how much money do you need to be financially independent? The answer is you need to know two things – your annual expenditure and the number of years you need to spend it. Once you can answer the question, you can calculate the estimated amount using the 4% rule. The 4% rule assumes you deplete your assets by 4% annually. 

Advantages of being financially independent

Financial independence meaning can be different for different people. Some people think of it as having enough money without requiring to work, while young adults may think of it as being able to meet financial obligations without help from others. Irrespective of your definition, there are some distinct advantages of being financially independent.

1. Financially independence helps us feel secure 

Becoming financially independence can give your peace of mind. Feeling secure is a basic human emotion and dictates much of our actions. It is stressful to live paycheck to paycheck, being in debt, and wondering if you will be able to meet your expenditure if you lose your job. When your passive income exceeds your minimum expenses, you feel secure.

2. Be financially independent and have more control over your time-

If you want more control over your time, aim to be financially independent. You will have the freedom to decide how you will spend your time. Once you are financially self-reliant, you can either work because you are passionate or retire and pursue other interests. Financially freedom can give you the freedom to follow your passions.

3. Become financially free to get extra investment power

Your assets and investments give you additional income. You can consider it as a bonus, on top of your salary. After you have financial independence, you will have the means to grow your wealth. You will not need to withdraw your money to reinvest. Without having to withdraw your money, your wealth will increase.

Also read: How much money should I save before buying a house? | A financial guide

3 important items to note before gaining financial independence

We tend to take advice from several sources before making any financial decisions, Some of which may not work for us. There are myths and misconceptions about becoming financially independent. Mistakes can range from confusing high income with wealth or not understanding taxation while selecting an investment portfolio. Here are some insights before gaining financial independence

Achieving financial independence by understanding income is not wealth

Most of us believe you need a high-paying job to achieve independence. While it is easier to amass assets if you earn well, you need to spend less than you earn. Remember, there is a difference between income and long-term wealth. Income is a vital component of wealth but not the only factor. Long-term thinking will help you accumulate wealth. Ways like side-gigs and portfolios like stocks, mutual funds, and real estate are just some wealth generators.

Creating surplus funds for reaching financial independence

You cannot invest unless you have surplus cash. Your investments need to reach a critical mass before the returns on the assets can help you reach your goal. Financial independence is a slow process, take small steps every day – reduce expenses, generate extra income, and invest the money. Remember to utilize a return on investment to increase your portfolio.

Taxation matters for being financially free

You need to realize not all income is equal. Asset planning can make the difference between well-off and rich. People with low wealth have high taxable incomes, being financially free may generate unrealized gains from real-estate appreciation, capital gains, and profits earned from tax-free accounts like 401K. Money is not taxed unless you withdraw it for retirement.

Also read: How to double your money | 20+ Best ways to double your money!

Top 10 ways to become financially independent

Financially freedom sounds wonderful. It means having enough savings, investments, and cash on hand to afford the standard of living you want for yourself and your family. Most people fail to achieve their objective of being financially independent and retire early. They get burdened with debt, financial emergencies, and overspending. Here are ways to become financially independent

1. How to be financially independent by setting goals

The first step of how to be financially independent is setting goals. Define what financial freedom means to you. Try to be as detailed as possible the more specific you are about your goals, the more likely you are to achieve them. Next, reverse-calculate to create financial milestones you should achieve at regular intervals. Write the milestone down and put it in front of your financial folder.

2. How to become financially free by making a budget?

One of the vital steps on how to become financially free is making a monthly budget for your household. Try to stick to it, pay your bills, and ensure your savings are on track. If you feel tempted to splurge, take a look at your goal sheet on the first page of your financial folder. It will remind you of your goals.

3. How to gain financial independence by paying credit card bills in full.

Credit cards are a debt trap and are like high-interest consumer loans. Credit cards are counterproductive to wealth generation. One of the ways on how to gain financial independence is to ensure you pay off your card payment fully on time. Student loans, mortgage, and car loans are similar but have a lower interest rate, so prioritize credit card bills. Paying your credit card bills on time will help build your credit rating.

4. How to be financially independent? Create an automatic savings account 

Remember to pay yourself first. A great step towards how to be financially independent is enrolling in your employer’s retirement plan and making a matching contribution. It is a great idea to have an automatic withdrawal for an emergency fund which you can use to meet unexpected expenses. Try putting the money aside as soon as you receive your paycheck, so it is not spent.

5. How do I become financially independent – start investing 

There are occasional bad stock market runs, but it is still one of the best places to invest your money. You want to know how do I become financially independent. Invest in the stock exchange but avoid stock picking. We suggest opening an online broker account, maintaining a manageable portfolio, and making periodic contributions.  

6. Becoming financially free by watching your credit

Your credit score determines the interest rate you pay when you apply for a loan to buy a car or home. It can impact car insurance and life insurance premium. Insurance providers presume people with poor financial habits will be reckless in other aspects of their life. If becoming financially free is important, get a credit report periodically to ensure your rating remains positive.

7. How to get financial independence by negotiating?

Many people hesitate to negotiate for goods and services because they are worried they will look cheap. One of the ways, how to get financially independence, is overcoming cultural hesitation and negotiate. You can save a considerable sum every year. Small businesses are usually more open to negotiating, especially if you buy in bulk or are an old customer.

8. How to achieve financial independence by continuous education

One of the best ways on how to achieve financial independence quickly is to stay informed. Study applicable changes in tax law every year to ensure you have utilized adjustments and deductions. Keep abreast of financial news and stock market movement and adjust your portfolio. Knowledge will protect you from potential crooks who lure investors with the promise of quick returns.

9. How to become financially secure by proper maintenance

One of the best steps on how to become financially secure is taking good care of things you own. Whether you made a big purchase like a car and lawnmower or smaller purchases like shoes and clothes take care of your possessions, proper maintenance will help it last longer. The cost of maintenance is usually much lower than the cost of replacement. It can help in considerable saving over time.

10. How to become financially independent fast- live below your means

If you want to know how to become financially independent fast, you need to maintain a frugal lifestyle. Many wealthy individuals have developed the habit of living below their means even after they are financially free. You need not be a miser, but question if you need to purchase or do you want it.

Also read: Estate planning attorney | Top things know before hiring an estate planning attorney

Steps to becoming financially independent in your 30s

Yours 30s is a critical decade, you have completed your education, you are progressing at work, many people in their 30s marry and start their families, or buy homes. To meet your goal of financial freedom at 30, you need to change the way you perceive money. Here are our top steps to become financially independent in your 30s.

Saving aggressively best way to become financially independent 

By saving aggressively, we mean saving at least 50% of your savings. Analyze your spending you need to make financial sacrifices to reap benefits. To increase your savings, you either need to cut your expenses or increase your income, preferably both. Scout around for the bank that gives you the best interest rate and saves a portion of your money in the bank. 

Improve investment knowledge is one best way to become financially free

Take the time and effort to learn and become well-informed about personal finances. One of the best ways to become financially free is to know your investments thoroughly. We recommend investing in a well-balanced portfolio to minimize risk. Since you are young, you can invest a portion of your savings in high-risk investments like cryptocurrency. Look at investing in a diverse portfolio that grows in value. Avoid getting sucked into quick rich schemes.

How to reach financial independence by knowing your target numbers

You may want to be financially free, but you need to know what it means to be financially free. Calculate how much money you will need to retire at 30. How to reach financial independence – the first step is to work out exactly how much you need to withdraw, realistically without impacting your capital growth. Once you have an amount, you can formulate saving, investing, and spending strategies.

Also read: Reddit personal finance | 21 Best Subreddits on Personal Finance

How to become financially independent in 5 years?

A financially independent may mean having enough income to pay for your expenses in your lifetime. A financially independent person can live on the income earned from their expenses. Five years is a short time frame, but with a discipline, and financial independence plan, it is an achievable goal. Here are the top steps for how to become financially independent in 5 years.

1. Financial independence planning involves examining expenses 

To achieve the goals you need to spend less. You need to know your expenses and income. Spend some time examining your spending in detail. Plan to pay off your consumer debt, and pay off student loans, credit card debt, and housing loans. It will help reduce your monthly expenses.

Since you are working on an accelerated time frame, look for ways to cut your expenses. Start by cutting impulsive purchases and subscriptions you do not use. You can then work your way up.

2. Reach financial independence by increasing your income 

Saving and investing your money will not happen by just cutting your expenses. Look for ways to increase your income to reach financial independence. You could look for a second job or moonlighting or ask for a raise in your present job. You will need to increase your savings rate to meet your financial goals.

3. Financially independent retire early invest strategically 

Financially independent retire early in five years will be impossible if you do not invest strategically. Focus on investments that generate a stream of income in the long run. You will possibly max out the investment quota from 401K to IRA. Real estate and index funds are considered sound investments. Do your groundwork before investing.

Also read: Tax accounting | Basics on tax accounting & 5 key principles to make a note!

How to become financially independent in 10 years?

Becoming financially in 10 years is a realistic goal. To get set on the road to financial independence, change your spending and investment behavior. Here are top ideas on how to become financially independent in 10 years –

• Change your mindset, stop thinking the more money you earn, the more you can spend. Instead, start thinking of money as assets that can fund your future. Aim to maximize your surplus every year. Estimate the money you need in the year. Use the 4% rule to calculate how much you can withdraw from your portfolio. 
• Use the rule to reverse engineer how much investment you need to accumulate every year.
• To reach your goal you need to increase your surplus i.e. the difference between your income and expenditure. You need to reduce expenses. You can cut out or reduce expenses altogether.
• Maximize your income. It may depend on your job and expertise. High performance and promotion may help. 
• Reduce your expenses as you can. Aim to be frugal with your spending. It may not be as big a sacrifice as you imagine, we often make impulsive purchases. Another common pitfall is increasing your spending as your income increases.  
• Now that you have a surplus, invest the surplus. We recommend investing your money in low-cost and index-cutting funds.

How to be financially independent without a job?

Becoming financially independent without a job is not easy. Here are some tips if you want to know how to be financially independent without a job.

• Investing in real estate is a popular way people achieve financial independence. You may have to work for the upfront capital. Once you have a real estate portfolio, you can get a steady income till you die.
• Investing in dividend-paying stock is another way to earn independent money. You need to have a large dividend portfolio that pays you every month or quarter.

Also read: 20 Best low-stress jobs | High paying low-stress jobs (With median pay)

What to do after financial independence?

People feel a little lost after becoming financially free. They wonder what do I do after financial independence. Here are some tips that may help –

• Now that you are financially independent continue working. Now instead, you can work at your dream job or do what you always wanted to do. 
• After early retirement, work will no longer control your schedule. Traveling is an excellent way to spend some time. You can either plan your trips well in advance or be spontaneous. You can find some excellent deals online.
• Most people never become financially independent. Consider sharing your knowledge on how to be financially independent in an e-book or blog.
• Spend time honing your hobby.
• You can continue working but opt for a less stressful schedule.

How to be financially independent in college?

All college students want independence. A question often asked is how to be financially independent in college. Here are some tips that will help you along –

• Avoid falling into the debt trap. You may want to live a high life – travel, buy new clothes, and party, but you need to be smart about financial decisions. Try to avoid student loans, instead, look around for scholarships. 
• If you aim on becoming independent from your parents financially, you need to set realistic goals. Start savings as a healthy habit.
• Track your daily and monthly expenses, and try to keep your monthly expenses low. There are apps available that help you calculate your monthly budget and categorize your spending. Alternatively, use your credit history as a guide. 
• Avoid using your credit card. Make a rule to use cash for your daily expenses.
• Remember to have fun without going overboard.

Shubha Roy

Shubha writes blogs, articles, off-page content, Google reviews, marketing email, press release, website content based on the keywords. She has written articles on tourism, horoscopes, medical conditions and procedures, SEO and digital marketing, graphic design, and technical articles. Shubha is a skilled researcher and can write plagiarism free articles with a high Grammarly score.

Are you looking for some of the best ways to flip your money? In this blog, we show you how to double your money without falling for any scams.

How to double your money?

More money is generally welcome. If you had the power to double your money quickly, it would be great, wouldn’t it? But with the present bank interest rates, it will take a significant amount of time for your money to double. If you want your money to double, you need to take some calculated risks. 

How long does it take to double your money?

We work hard to earn money. It would be nice if our money grew automatically. If we do not take proactive steps to invest, inflation can consume your savings. But how long does it take to double your money? The Rule of 72 lets you estimate how long to double the money. It demonstrates the impact of different rates of returns, but cannot foresee the future use of savings. It can help us understand the risks and rewards of short-term and long-term investing.

To use the rule of 72, we divide 72 by the annual interest rate on your money. The answer gives us the time taken to double your money. 

• If your savings account offers 3% interest annually, It will take 72/3 = 24 years for your money to double.
• If your mutual fund promises an 8% return, it will take 72/8=12 years for your money to double.

Also read: How much money should I save before buying a house? | A financial guide

Ways to double your money

Doubling your money is a realistic goal that you can aim for. You don’t need to win big at Vegas. There are numerous investment options available. How to multiply your money broadly depends on your appetite for risks and how quickly you want to multiply your money. Here are some ways to double your money –

What is the easiest way to double your money?

People often ask investments experts, what is the easiest way to double your money? One of the easy ways to flip money is by buying savings bonds from the U.S. Treasury. Though the interest rate is low, your money will double in around 20 years and continue to earn interest for another 10 years.

Best way to invest 50k

If you have an extra $50,000 to invest, what would do? How to invest 50K? Experts recommend setting aside some money for emergencies. You can use some of the money to pay off some debt. Here are the best ways to invest 50K –

• In real estate – if you are looking to buy a house $50,000 may not be enough to buy the property outright, but is enough to be used as a down payment. 
• Individual stock – Individual stock is when you invest in a single company. The gains and losses on your investment will depend on the company’s performance and its stock. There is always a risk of your investment declining in value.
• Individual bond – Bonds are debt instruments, make a loan to the borrower for periodic interest payment and the bond’s value when the bond matures.
• Robo advisors – one of the easiest ways to start investing is with Robo advisors. Robo advisor invests in different ETFs (Exchange-traded funds) on your behalf, based on needs and risk tolerance.

Also read: 25 Essential Questions to ask a financial advisor | Know your advisor

Best way to invest 20K

If you get a sudden windfall of $20,000, deciding how to invest the money can be both exciting and daunting. What are the best ways to invest 20K? It is a large sum of money, provides you with many options. Here are the best ways to invest 20K –

Invest with a broker – The best way to flip money with a broker. It is easy to invest your money with an online broker. The broker can educate you about 

• Stock market and investing
• Real estate – You can always buy the property and become a landlord. Another option How to invest 20K in real estate? Is to invest in a real estate crowdfunding website. They sell shares of it as an investor through their website. The entry barrier is low with high returns.
• Money market accounts are a conventional investment option. They are stable and are safe, and interest earned is the same as a high-yield savings account.   
• Do a 401 K swap – If you are employed, you can swap your money into your 401 K. You can stash 20K in a liquid high-yield savings account and increase your 401(K) contribution. At the end of the year, you would have invested more in your 401(K) and reduced your tax liability.

Best way to invest 10000 Dollars

If you suddenly have 10K, what will you do? You can splurge your money or put the money in the bank or invest your money. If you are looking for ways on how to double 10K quickly, you have two options short-term investment and long-term investment ideas. Here are the best ways to invest 10000 dollars –

• Stocks – Investing in stocks is so much simpler today, just use an online broker. Do your homework before investing. Once you have some understanding, set an amount aside and dive in. 
• Mutual funds – Mutual funds and ETFs offer investors diversification. Rather than investing in one stock, they diversify into stock and bonds. 
• High-yielding saving account – You can invest your money in high-yield CDs or savings accounts. Online banks offer attractive interest rates. You get all the benefits of a traditional bank and FDIC insurance covers the banks.
• Peer-to-peer lending – If you are looking at a fixed income, you can consider peer-to-peer lending. The interest rates are above average. The websites bring lenders and borrowers to create an open lending environment. The terms and conditions of the loan are favorable for the borrower, and the lender gets a better rate of interest than the bank deposits.

Also read: Reddit personal finance | 21 Best Subreddits on Personal Finance

Best way to invest 5000 Dollars

You have been carefully saving some money every month and have saved some $5k. You may want to invest. If you are wondering how to flip money fast, here 

are tips on the best ways to invest 5000 dollars-

• Roth IRA – A Roth IRA is a stable long-term account where you pay taxes ahead of time. They are a good investment if you are a young investor. Use Ruth IRA to plan your taxes in the future. 
• Index Funds – Index funds help you diversify in specific markets like the stock markets. An index fund is a portfolio of stocks and bonds designed to perform similar to the financial markets. They are considered a conservative way to invest in equity. 
• ETFs – ETF or exchange-traded funds are similar to mutual funds, where you can purchase shares to get a slice of the investment holdings. You can buy and sell ETFs on the stock market. 
• Certificate of deposits – If you are looking at short-term investments, you can consider a certificate of deposit (CD). CD usually has a maturity period of 5 years.

What should I do with my money?

Money provides safety, comfort, and stability for you and your family. To achieve your financial goals, you need to know how to make money work for you. If you are wondering what should I do with my money? Take control and use the money to solidify your finances. You have many options for investing today, like equity-linked savings schemes and gold exchange-traded funds.

1. Guaranteed interest accounts 

Guaranteed interest accounts are perfect if you want to set up an account for a specific reason. It could be for your dream vacation or emergencies. Guaranteed interest accounts are an insurance policy that guarantees an interest rate for a specified period.

They pay a higher rate of interest than most savings accounts. The accounts offer stability, guaranteed protection of your principal amount, and the return-of-investment is similar to intermediate-fixed income investments. It is a popular investment because of the low risk associated with the investment. 

2. 401k growth rate

Employers offer the 401 K plan to their employees, and it is a retirement and savings plan. 401 K scheme gives employees a tax rebate on the money they contribute. The contributions are deducted from their paycheck and invested in funds chosen by the employer. The average 401K growth rate ranges from 5% to 8% for a portfolio invested in 40% bonds and 60% stocks. However, if your employer has invested more stocks, it can generate higher returns with a higher risk. 401K is a long-term investment and short-term fluctuations generally do not matter.

Also read: Top things know before hiring an estate planning attorney

3. Stock that will double

There are periods when the stock market performs well. In 2021 stock market in the US performed well, giving double-digit growth. Unfortunately, not all stocks showed growth. Stocks can be a risky investment your stock consultant can help you select the best stocks to double your money.

  There are several types of stock options you can consider –

• Dividend-paying stocks are a great option to double your money. The prices of the stocks rise as long as the companies are profitable and growing. The valuation of stock appreciation and dividends is a bonus.
• Growth stocks are stocks that will double or triple your money. Growth stocks are risky and traded at high levels. Buy these stocks carefully, and try to buy the ones that seem undervalued. 
• Value stocks are another way to double your money. These are less risky than growth stocks because investors prefer some safety. 

4. Average IRA return

Roth IRAs are a great way to invest in your future, the investment accounts offer you a tax-free income when you retire. The Roth IRA account is a retirement account you contribute to using after-tax income. 

You are allowed to withdraw after 5 years and are over 59.5 years. Ruth IRA account does not earn interest on its own, you will have to choose investments to houses with the account. IRA accounts earn compound interest and average IRA returns deliver between 7 to 10% annually.

5. Invest in real estate

Investing in real estate can be lucrative and help diversify your portfolio. There are several ways to earn well in real estate. Some of the best ways to invest in real estate are-

• Buy REIT (Real estate investment trust) – REIT allows you to invest in real estate without physical real estate. REIT is similar to mutual funds and companies that own real estates such as office buildings, retail spaces, apartments, and hotels. If you are wondering, how to invest 20 K in real estate, REIT is an excellent option. REIT pays a high dividend.
• Invest through online retail investing platforms that connect real estate developers to investors who want to invest through debt or equity. Investors hope to receive monthly or quarterly payments. 
• You can invest in a rented property. You can rent by room rather than the entire house. 
• You can flip houses. You buy an undervalued property that needs renovations. You renovate it as inexpensively as possible and resell it for profit.

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How to double your money in a year?

Seeing your money double in a year is a dream for many investors. Going by the rule of 72, you would need to invest in avenues that provide 70 to 72% returns. Doubling your money requires both calculation and speculation. If you are keen your money doubles every 7 years, you need a return of 10%. There are various investment options on how to double your money in a year available –

• The most traditional way of doubling your money is to have a solid and non-speculative portfolio with an investment split between blue-chip stock and bonds. 
• Stocks are a great investment avenue but can be risky. We recommend doing your homework and examining the company’s price-to-earnings ratio and book value. 
• U.S. Saving Bonds are a safe way to invest your money. 
• You can buy stock options if you understand how a specific industry operates. A stock option generally means you purchase 100 shares, and you can double your income fast if it works out. We recommend you do your homework before investing.

How to double your money in a month?

You want to know how to double your money in a month. There are quite a few ways to do it –

• Bonds are great for portfolio diversification. It invests in a mix of stocks and bonds. This helps to protect your investment better.
• Investing in something that offers compound interest helps you double a penny for 30 days. Some saving accounts offer compound interest. Money market account pays a higher rate of interest. 
• Invest in oversold stocks – The best time to purchase stocks price drops, you can buy shares at a lower rate. Sometimes investors dump shares when a company goes through a lean phase. To operate alone in the stock market, you need to understand how the stock market works.
• Invest in crypto- Cryptocurrency has become a buzzword in the last few years. It allows your money to grow quickly. You must be aware of the risks involved, choose your crypto carefully. 

How to double your money in a week?

If you are want to know how to double your money in a quick. There are many ways to double your money in a week

• Invest in stock – Stocks are a great option if you want to make money quickly. If you are interested to know how to make 1000 a week in stocks. You need to understand how the fundamentals work. It requires hard work and focus.  
• You can use a high-yield saving account – These accounts offer a higher interest rate than traditional savings accounts. It may take some time for your money to double, but it will be much faster than normal saving accounts. 
• If you are looking to earn quick money, you can look for a side hustle. Several options are available on the internet, from driving on rideshare to teaching classes. Think of expertise and how it can be monetized. 
• Forex trading is a market where the currency is traded. Foreign currencies are required in foreign trade and business. Forex trading is risky but can be lucrative. You need to learn how the forex market works and open a forex trading account works.

How to double your money in a day?

Do you want to double your money in 24 hours? It would be awesome if we could. Here are our top tips on how to double your money in a day or how to flip money in a day. 

• If you want to make money overnight invest in the stock exchange. When you invest through mutual funds the risks are lower. The annual return on the stock market index fund is 7%.
• You have probably seen advertisements where people have made millions after investing in Bitcoins or cryptocurrency. It is a great way to make money overnight but is risky. If you just getting started stick to the more popular brands. The currency is extremely volatile can swing by over 10% in a day. If you are lucky you can invest $100 and make $1000 a day.
• Day trade stocks are riskier than the stock market but are one of the ways to make money overnight. You purchase a stock at a certain price and sell it for profit at the end of the day. If you are lucky it is the best way to ways to make money overnight.
• One of the ways on how to make 50k overnight is to borrow $50,000 from your retirement funds.

Shubha Roy

Shubha writes blogs, articles, off-page content, Google reviews, marketing email, press release, website content based on the keywords. She has written articles on tourism, horoscopes, medical conditions and procedures, SEO and digital marketing, graphic design, and technical articles. Shubha is a skilled researcher and can write plagiarism free articles with a high Grammarly score.