What is 15 rule of money?

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Want to become a crorepati? Follow the 15 Rule of Money. Invest Rs 15,000 a month for 15 years in a stock that offers 15% interest annually and you could amass Rs 1,00,27,601. But remember, the stock market is volatile and returns can vary. This formula can help investors calculate the amount of money they can accumulate by investing a fixed amount of money every month in a stock that offers a fixed rate of return. Start investing now and watch your wealth grow.

What is the 15 Rule of Money?

Investing in the stock market can be a lucrative way to grow your wealth. However, it can also be a daunting task, especially for beginners. That’s where the 15 Rule of Money comes in. This rule is one of the most basic rules that help an investor become a crorepati.

The 15 Rule of Money Explained

The 15 Rule of Money is a simple formula that can help you calculate the amount of money you can accumulate over a period of time by investing a fixed amount of money every month in a stock that offers a fixed rate of return. The rule states that if you invest Rs 15000 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.

It’s important to note that the 15 Rule of Money is based on the assumption that the stock you invest in will offer a fixed rate of return of 15% per annum. However, in reality, the stock market is volatile, and the returns on stocks can vary widely. Therefore, it’s important to do your research and invest in stocks that have a proven track record of delivering consistent returns.

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How to Apply the 15 Rule of Money

If you want to apply the 15 Rule of Money to your investment strategy, here’s what you need to do:

Determine the amount of money you can afford to invest every month.
Identify a stock that has a proven track record of delivering consistent returns.
Calculate the rate of return the stock has delivered over the past 15 years.
If the rate of return is close to or above 15%, invest in the stock.
Invest Rs 15000 a month in the stock for a period of 15 years.
At the end of 15 years, you should have accumulated an amount of Rs 1,00,27,601.

It’s important to note that the 15 Rule of Money is just a guideline and not a guarantee. The stock market is unpredictable, and there are no guarantees when it comes to investing. However, by following this rule, you can increase your chances of growing your wealth over the long term.

In Conclusion

The 15 Rule of Money is a simple yet powerful formula that can help you grow your wealth over the long term. By investing a fixed amount of money every month in a stock that offers a fixed rate of return, you can accumulate a significant amount of wealth over time. However, it’s important to remember that the stock market is unpredictable, and there are no guarantees when it comes to investing. Therefore, it’s important to do your research and invest in stocks that have a proven track record of delivering consistent returns.