look news india
How to become rich: Becoming rich is not rocket science, but it is not that easy either. If you save regularly from your first salary and invest that money in good investment options, you can accumulate a good amount in the long term. Today we are going to tell you some rules of the world of personal finance, which can make your investment journey easier.
This rule tells you when your money doubles in an investment option. To find the rule of 72, divide the expected annual return rate by 72. For example, you have invested Rs 1 lakh in an investment option that gives a return of 8 percent per annum. Now dividing 72 by 8 will give 9. It will take 9 years for your investment to double. That is, it will take 9 years for your investment of Rs 1 lakh to become 2 lakh.
This rule tells you how long it will take for your investment to triple. In this rule, you have to use 114 instead of 72. For example, if an investment gives you 10 percent annual return, then it will take 114/10 = 11.4 years for your money to triple. Thus, this investment will take 11.4 years for your money to triple.
This rule tells us how much time it will take for our investment to quadruple. For this, you have to put 144 in place of 72 in the formula. Such an investment gives you a 12 percent annual return. So, this investment will take 144/12 = 12 years to quadruple your amount. You can also use this formula in reverse to find the percentage of annual return required to increase your investment 4 times in so many years.
