Double your money with these five tips

New Delhi, Nov 26: We all want to double our money, right? But we also want it without any risk. Doubling your money is a realistic goal and if one takes systematic approach then the payoffs will be bigger.Since each individual's finances and goals are personal, it's good to know the rules of thumb that can help guide you towards the path of financial prosperity. Here we look at some tips that could be helpful in devising a broad strategy for great financial returns.Don't ignore the power of small savingsDo not underestimate the power of small savings. If you think it's not worth to save few hundred of rupees every week, take a look at how quickly it can add up.Amount saved each week Total at the end of one month Total at the end of one yearRs 1000 Rs 4000 Rs 48,000Rs 2000 Rs 8000 Rs 96,000Rs 3000 Rs 12,000 Rs 144,000You can do much better. Remember, the longer you save, the more it grows in value aided by compound interest. An extra Rs 4,000 in your pocket every month isn't a bad idea and you can easily do it by changing the way you spend. There are literally hundreds of expenses which you can shave and save. The reality is once you get into the swing of things you'll find numerous ways to save money on just about everything you buy. And those savings will add up big time.Cut your monthly budget drasticallyIt is important to cut your monthly budget in an effort to build your savings. Make dining rare, take your lunch to work instead of eating out, drop the Set Top box TV, take metro instead of your own car, shop second hand, switch off lights, buy items on discounts etc. Cutting back on unneeded expenses may be a tough call for many since many of us have been accustomed to spend much more than we actually need. But when there's not much coming in, you have to be completely aware about what you do have. Budgeting will give you a clear idea exactly what you earn, and how you're spending it. Here are some ways which you can implement immediately to cut your monthly budget drastically.* If you can't pay in cash, don't buy it* Give up smoking (or at least cut back)* Eat out less.* Bring your lunch to work* Look for items at discount* Plan out your holiday spending budget in advance, then stick to it* Give fewer gifts, and be more creative about them* Take public transportation* Instead of visiting malls and spending there, seek out free activities for you and your kids* Rent a movie instead of going to the theater.* Vacation at home* Buy your next car, don't lease* Buy a used car rather than a new car* Cut down on alcohol* Cancel your gym membership and walk to work insteadCompound interest is your best friendIn first look, the amount of interest may look miniscule. But the good thing is that it grows over time. Even more, it can add up very quickly – thanks to compound interest. It is simply, the interest earned on interest.Say you have Rs 100,000 in your bank account earning 6 per cent interest. After five years you'll get Rs 134,000 with interest being Rs 34,000. Similarly, the same amount will be Rs 181,940 after a span of 10 years. Quite handsome money indeed! Remember, the longer your money can remain uninterrupted, the bigger your fortune can grow.Correctly determine your asset mixYour asset allocation is "the amount of money you invest in each of various asset classes, such as stocks, real estate, and cash." Research demonstrates that asset allocation will be responsible for more than 90 per cent of portfolio returns. Since risk level and portfolio return are directly related, your asset allocation should balance your need to take risk with your ability to withstand the ups and downs of the market. Also, your age, time horizon, investment experience and risk tolerance, are all important factors in determining your asset mix. Say, if you're young, you have the benefits of many years of compounding ahead, so in one respect your need to take risk is low. Similarly, if you are closer to retirement and feel you do not have enough saved and need to catch up, you may feel your need to take risk in order to generate better returns is high.Promote yourselfPromoting yourself requires persistence and in the longer run you can easily reap rewards of your efforts. In order to substantially earn more money (read doubling) you need to prove that the value of the work you do far exceeds what you are being paid. Illustrate your boss how much money you've made for them through your hard work – aptly supported by a chart or graph for visual impact. With persistence and patience, you can systematically negotiate regular pay increases that could double your salary.Disclaimer: All information provided in this article is for informational purposes only.