Investment Tips: We save and invest but despite this we do not get a very good return. In such a situation, many times the question comes to mind that how to invest so that we can have a fund of crores of rupees in a short time. In this article, we will tell you about such rules of investment through which a fund of crores of rupees can be prepared.
Investment Tips: In today’s time, everyone wants to have assets worth crores of rupees. For this, he also invests along with saving. But, he does not know how much time it will take for his dream of becoming a millionaire to come true. In such a situation, if by following a formula you come to know after how many years you will become a millionaire, then what to say. In this article, we will tell you about one such formula which will help you in realizing your dream of becoming a millionaire.
Follow the 8-4-3 formula (Rule of 8-4-3)
Many people follow the 8-4-3 formula (Rule of 8-4-3) to get great returns and invest in the right way. By investing in this, you can get a minimum return of up to 12 percent. This formula is quite simple. According to the formula, you should invest in such a scheme which gives annual compounding interest. Today, there are many such schemes in the market which are offering compound interest.
In how many years will you become a millionaire (Rule of 8-4-3 Calculator)
If you invest Rs 21,250 every month in this scheme, then a fund of Rs 33.37 lakh will be ready in 8 years. This is the first step to become a millionaire. Now again with the help of compound interest, you will collect Rs 33.37 lakh in the next four years and then in just 3 years, another Rs 33 lakh will be added to your fund. In this way, in just 15 years, you will become a millionaire through the 8+4+3 rule.
Similarly, if you continue to deposit Rs 21,250 every month for 6 years even after 15 years, then in total 21 years you will have a fund of Rs 2.22 crore.
The magic of compounding interest
Compounding interest has a big contribution in creating a big fund with the 8-4-3 formula. Albert Einstein had described compounding interest as the eighth wonder of the world. Actually, interest is received on investment in two ways. One is simple interest and the other is compound interest. In simple interest, interest is received only on the principal amount i.e. the investment amount. On the other hand, compound interest is received on the principal amount and then that interest is added to the principal amount. In simple language, it also gives interest on interest.
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