Investment Tips: Do you want to double, triple or quadruple your money in investments? If this is your dream, you will need a lot of discipline, patience and research. First of all, invest money only in those investment options that you know well. Don’t invest your money based on someone’s advice or opinion, otherwise you may get into trouble. There are many formulas in the world of personal finances. These expert-created formulas make your investing journey easier. Today we tell you 3 of these formulas with which you can know how long it will take you to double, triple or quadruple your investment. By using these formulas, you will know what percentage of your money you should invest in an average return investment plan to achieve your goal.
rule of 72
This rule tells you when your money is doubled in an investment option. To understand the rule of 72, you divide the expected annual rate of return by 72. For example, you have invested Rs 1 lakh in an investment option that offers an annual return of 8 percent. Now, dividing 72 by 8 will equal 9. This 9 is the number of years it will take you to double your investment. That means in this investment it will take 9 years for your Rs 1 lakh to become Rs 2 lakh.
rule of 114
The Rule of 114 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 a 10 percent annual return, 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 of 144
Using the rule of 144, we can know how long it will take our investment to quadruple. For this, you must put 144 instead of 72 in the formula. As if an investment would give you a 12 percent annual return. Therefore, it will take 144/12 = 12 years for the amount of this investment to quadruple. You can also use this formula in reverse to find out what percentage of annual profitability will be necessary to multiply your investment 4 times in as many years.
By using these formulas, you will know what percentage of your money you should invest in an average return investment plan to achieve your goal.
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