If you are planning to start your investment in the new year i.e. 2025, you should always keep two things in mind before jumping into investing. Return on time and investment. The longer you invest, the higher returns you will get.
You need to ensure that you will achieve your goals with minimal risk. You need to plan keeping in mind the amount you want to get in the future from your investments. Here we give you some good tips on the mathematics of investing, which will make things very clear and easy for you.
50-20-30 rule This rule is as clear as its numbers. You will need to divide your amount into three parts. After tax, 50% of salary must be kept for household expenses. 20% should be kept for short-term needs and 30% should be invested for future needs.
rule 15-15-15 These rules are for those who believe in long-term investments. In this, Rs 15,000 has to be invested every month for 15 years in an asset which gives an annual return of 15%. Stock investment is suitable for this. Because despite the ups and downs of the stock market, the stock market has always ensured a 15% return in the long term.
rule of 72 This rule indicates the time required to double the money. Divide 72 by the potential return or interest rate and see. If you are getting a 15% ROI in SIP, then to get the time needed to double it, you can divide 72 by 15, which will equal 4.8 years.
rule of 114 This rule calculates the time required to triple an amount. You can find this time by dividing 114 by the expected interest rate. For example, if your investment earns you an annual return of 15%, divide 114 by 15, which equals 7.6 years.
minus 100 Age: This is linked to the distribution of wealth. Subtract your age from 100. The number you get will be the percentage you should invest in the stock market. This rule is based on the fact that the younger you are, the greater your appetite for risk. You will also be able to compensate for any losses you incur during this period.