How to make a crore fast? This 8-4-3 rule will surprise you

How to become a millionaire? How to make a crore fast? Are you someone who regularly searches the internet for these questions? There are hundreds of books on how to get rich quick and how to become a millionaire that offer various money making tips. A common advice you will find in all good investment books is to stay invested for a long time and witness the magic of compounding

When you invest money, its impact is not immediately visible, but as time passes, its growth becomes apparent. This proves that patience is key in investing. Only patient investors reap the benefits of investing and witness the magic of compounding. With a little discipline and the power of compounding, you can easily multiply your money. Have you ever wondered how long it takes to make a crore? The answer depends on how much you invest and the returns you get on your investment. But earning a crore rupees is not as difficult as first thought.

How to use compounding to become a millionaire?

Compounding allows your initial investment to earn income that is then reinvested to generate more income over time. By investing these returns over and over again over the same investment period, compounding helps increase the value and profitability of your investment significantly.

How does the compounding 8-4-3 rule work?

By following the 8-4-3 rule of compounding, you can help your money grow faster. Let's see an example of how this law grows money: Suppose you invest Rs 20,000 every month in an instrument that pays 12% interest per annum. Compounding this annually, you get Rs 32 lakh in eight years. If the first Rs 32 lakh is made in 8 years, the next Rs 32 lakh is made in just 4 years at the same rate of interest. Thus, after 12 years, a monthly investment of Rs 20,000 in an investment vehicle will yield Rs 64 lakh. Continuing to invest Rs 20,000 per month and leave this amount for another 3 years, the corpus will be Rs 1 crore.

Your investment can follow this growth pattern:

Initial Growth (Years 1-8): Steady growth on your investment for the first eight years.

Accelerated Growth (Years 9-12): Over the next four years, your investment grows at the same rate as it did in the first eight years.

Exponential Growth (Years 13-15): In the last three years, your investment again grows as compared to the previous four years.

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Jeroj

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July 23, 2024

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