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What interest rate would double your money in five years? You can reverse the

Rule of 72

In finance, the rule of 72, the rule of 70 and the rule of 69.3 are **methods for estimating an investment's doubling time**. The rule number (e.g., 72) is divided by the interest percentage per period (usually years) to obtain the approximate number of periods required for doubling.

https://en.wikipedia.org › wiki › Rule_of_72

- Liquid Funds. Also known as money market fund, these are a type of mutual fund scheme, which invests the money in short-term government securities and certificates. ...
- Savings Account. ...
- Post-Office Time Deposits. ...
- Large Cap Mutual Fund. ...
- Stock market/ Derivatives.

Use **the Rule of 72**

Simply divide your rate of return by 72 and the rule of 72 will tell you how long it will take. For example, if you have a rate of return of 10% annually. The rule of 72 would equate to doubling your money in 7.2 years.

To know the time duration in which your FD amount will get doubled, you have to divide 72 with the highest rate. For example, if the highest rate on FD is 7.05%, then the number of years in which your FD will get doubled is 72/7.05= 10.21. Thus, it will take **10 years** for your FD to get doubled.

Similarly, if you want to double your money in five years, your investments will need to grow at around **14.4% per year** (72/5). If your goal is to double your invested sum in 10 years, you should invest in a manner to earn around 7% every year. Rule of 72 provides an approximate idea and assumes one time investment.

What is the 50-20-30 rule? The 50-20-30 rule is a money management technique that divides your paycheck into three categories: **50% for the essentials, 20% for savings and 30% for everything else**.

The most basic example of the Rule of 72 is one we can do without a calculator: Given a 10% annual rate of return, how long will it take for your money to double? Take 72 and divide it by 10 and you get 7.2. This means, at **a 10% fixed annual rate of return, your money doubles every 7 years**.

**Fixed deposits are best for both short- and medium-term investments** whereas life insurance plans are designed for long term investments. You can invest for a period of as low as 7 days in fixed deposits unlike a life insurance plan wherein you need to invest for at least 10 years. You can invest a minimum amount of Rs.

- Fincare Small Finance Bank. Fincare offers attractive rates of interest on the 3-year tenure. ...
- KTDFC. A lucrative rate of 6.00% p.a. is paid for term deposits opened for a period of 3 years. ...
- Shriram City. ...
- Mahindra Finance. ...
- Sundaram Finance. ...
- LVB. ...
- Equitas Small Finance Bank. ...
- Yes Bank.

- Develop a millionaire's mindset. ...
- Carefully watch your expenses (big and small) ...
- Try to max out retirement investment accounts. ...
- Increase your income to become a millionaire faster. ...
- Use your money to make money to become a millionaire easier. ...
- Avoid "lifestyle creep"

- Applied Materials (NASDAQ:AMAT)
- Coinbase Global (NASDAQ:COIN)
- Intel (NASDAQ:INTC)
- Altria Group (NYSE:MO)
- Novartis (NYSE:NVS)
- Pfizer (NYSE:PFE)
- StoneCo (NASDAQ:STNE)

- 401(k) match. If your employer offers a match for your 401(k) contributions, this can be the easiest and most guaranteed way to double your money. ...
- Savings bonds. ...
- Invest in real estate. ...
- Start a business. ...
- Let compound interest work its magic.

- Invest with a robo-advisor.
- Invest with a broker.
- Do a 401(k) swap.
- Invest in real estate.
- Build a well-rounded portfolio.
- Put the money in a savings account.
- Try out peer-to-peer lending.
- Start your own business.

- Post office savings schemes. The post office is a trusted place to park your money. ...
- Public Provident Fund. ...
- Liquid Funds. ...
- Recurring Deposits. ...
- Systematic Investment Plans (SIPs) ...
- Debt Funds. ...
- Life Insurance. ...
- Not budgeting it out.

- Start Early. Rome was not built in a day. ...
- Invest having a target in mind. ...
- Say strict no to unnecessary debt. ...
- Risk Reduction by way of Diversification. ...
- Know your investments well. ...
- Offer time to your investments. ...
- Do smart investments. ...
- Keep your fears to the side.

- Invest in the Stock Market. When trying to learn how to double your money, investing in the stock market is the best way to increase your wealth over the long-term. ...
- Invest in Real Estate. ...
- Open a Savings Account. ...
- Invest in a Business. ...
- Pay Off Debt.

- Savings accounts. Recently, the falling repo rate regime has brought the savings account interest rates to an average of 2-4%. ...
- Liquid funds. ...
- Short-term and ultra-short-term funds. ...
- Equity Linked Saving Schemes (ELSS) ...
- Fixed deposit. ...
- Fixed maturity plans (FMPs) ...
- Treasury bills. ...
- Gold.

“The longer you can stay invested in something, the more opportunity you have for that investment to appreciate,” he said. Assuming a 7 percent average annual return, it will take a little more than 10 years for a $60,000 401k balance to compound so **it doubles in size**.

If you want to quadruple your money, **just double the Rule of 72 to obtain the Rule of 144**. If you want to triple your money, use the Rule of 120. To derive these rules, calculate the product of 100 and the natural logarithm of the exponent, and then look for a whole number with many factors at or above that result.

Most experts say your retirement income should be **about 80% of your final pre-retirement annual income**. 1 That means if you make $100,000 annually at retirement, you need at least $80,000 per year to have a comfortable lifestyle after leaving the workforce.