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 in a good investment option, you can accumulate a good amount of funds in the long term. Today we are going to tell you some such rules of the world of personal finance, with the help of which you can make your investment journey easier.
Rule of 72
This rule tells you when your money doubles in an investment option. To understand the rule of 72, you have to divide the potential annual rate of return by 72. For example, you have invested Rs 1 lakh in an investment option that is giving 8 percent annual return. Now, dividing 72 by 8 will give 9. This 9 is the number of years it will take for your investment to double. That is, in this investment, it will take 9 years for your Rs 1 lakh to become Rs 2 lakh.
Rule of 114
This rule tells you how much time it will take for your investment to triple. In this rule, you have to use 114 instead of 72. For example, if an investment is giving you 10 percent annual return, then it will take 114/10 = 11.4 years for your money to triple. In this way, it will take 11.4 years for your money to triple in this investment.
rule 144
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. For example, an investment is giving you 12 percent annual return. So, in this investment, it will take 144/12 = 12 years for your money to quadruple. You can also find out how much annual return will be required to quadruple your investment in so many years by using this formula.
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