What is 15 rule of money?

Quick Peek:

Want to become a crorepati? Follow the 15 rule of money. Invest INR15,000 ($203) per month for 15 years in a stock that offers 15% annual interest, and you’ll have INR1,00,27,601 at the end of the period. Compound interest means the longer you invest, the more your money grows. Remember to research, diversify, and only invest what you can afford to lose.

This rule is one of the most basic rules that help an investor become a crorepati

Investing can seem like a daunting task, but it doesn’t have to be. With the right knowledge and strategies, anyone can become a successful investor. One such strategy is the 15 rule of money. This rule states that if you invest Rs 15,000 a month for a period of 15 years in a stock that is capable of offering 15% interest on an annual basis, then you will amass an amount of Rs 1,00,27,601 at the end of 15 years.

The Power of Compound Interest

The 15 rule of money is based on the power of compound interest. Compound interest is the interest that is earned not only on the initial investment but also on the interest earned over time. This means that the longer you invest, the more your money will grow. The 15 rule of money takes advantage of this power by investing a fixed amount of money every month for a fixed period of time.

Why 15% Interest?

You might be wondering why the 15 rule of money specifically mentions a stock that is capable of offering 15% interest on an annual basis. The reason for this is that historically, the stock market has offered an average annual return of around 10-12%. However, there are certain stocks that have outperformed the market and have offered returns of 15% or more. By investing in such stocks, you can take advantage of their high returns and achieve your financial goals faster.

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Is the 15 rule of money realistic?

The 15 rule of money might seem too good to be true, but it is a realistic goal if you invest in the right stocks and hold on to them for the long term. However, it is important to note that investing in the stock market comes with risks and there are no guarantees of returns. It is important to do your research, diversify your portfolio, and invest only what you can afford to lose.

In conclusion

The 15 rule of money is a simple yet powerful strategy that can help you achieve your financial goals. By investing a fixed amount of money every month for a fixed period of time in a stock that offers high returns, you can amass a significant amount of wealth over time. However, it is important to approach investing with caution and to do your due diligence before making any investment decisions. With the right mindset and strategies, anyone can become a successful investor and achieve financial freedom.