Know 6 formulas to become a millionaire quickly on National Mathematics Day. Know 6 formulas to become a millionaire quickly on National Mathematics Day


50-20-30 rule

50-20-30 rule

This rule helps in being disciplined for saving. As per the rule, you have to keep 50 per cent of your salary after tax for your household expenses, 20 per cent for short term target and remaining 30 per cent for meeting your long term goals. Short-term financial goals can be travel planning, car, children’s education, etc. With constant investment, you can definitely become a millionaire in the long run.

15-15-15 Rule

15-15-15 Rule

This is the rule to become a millionaire. For this an investor needs to save Rs 15,000 every month for a period of 15 years and invest in mutual funds. On this he can get a return of 15 percent. This equation is a better combination of two things. First good returns and second long term investment. There may be some negative and some very good years in the equity markets, but you can get up to 15 percent returns in the long run. You can start through SIP.

Rule 72

Rule 72

This is a simple rule used to calculate the time it takes to double your money. Divide 72 by the expected ROI (rate of interest) or interest rate to give you an idea of ​​how long it will take to double your investment. For example, if investing in equities gives you a return of say 15 percent, then the time taken to double the investment is 72 divided by 15, which is 4.8 years.

Rule 114

Rule 114

This rule is used to calculate the time it takes to triple your money. Dividing 114 by the expected AIO will give this period. Continuing the example above, it would take 7.6 years for an investment to produce a 15 percent return. This calculation takes into account the advantages of compounding.

Rule 144

It tells you the time it takes to quadruple your money. In this one can find the period of money quadrupling by dividing 144 by the expected ROI. It will take 9.6 years to 4 times the money in an investment giving 15 per cent ROI.

subtract your age from 100

subtract your age from 100

You need to subtract your age from 100 to get a number that will tell you your allocation in equities. For a person of 25 years, 75 percent of his investment amount can be invested in equities. The idea behind this rule is that as you get older, your risk appetite increases.





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