Money Making Tips: Want to earn good amount of money? but dont know how? Then this article is made for you. Investment is not a game of the rich. Even a laborer earning Rs 300 per day can create a big fund through small investments, yes you’ve heard it right. All you need is the right direction and information. Some simple rules made by financial experts can help you in knowing how much money can be doubled or more, in how much time and at what return.
Know the rule
First of all you have to understand the rule. This rule tells you how many years it will take for your money to double if a scheme gives you a fixed return every year. The formula is: 72 ÷ return rate. For example, if a scheme gives 8% annual return, then 72 ÷ 8 = 9 years. That is, your money will double in 9 years.
If your goal is to triple your money, then use the formula of 114 ÷ return rate. For example, if an investment is giving 10% annual return, then 114 ÷ 10 = 11.4. That is, your capital will triple in 11 years and 4 months. To quadruple your money, use 144 ÷ rate of return. Example: If an investment is giving 12% annual return, then 144 ÷ 12 = 12. This means that your money will quadruple in 12 years.
If you invest even 500 rupees every month in a SIP (Systematic Investment Plan) and you get an average return of 12%, then in the next 20-25 years your small investment can turn into lakhs. This is the reason that by adopting these rules, even a laborer can become financially strong. Growing wealth is not a difficult task if you invest in a disciplined way and have patience. These rules not only give you direction but also help you create the right strategy. Just start small — because the biggest mantra of investing is: “Start early and keep going.”