In today’s world, everyone wants to own property worth crores of rupees. To achieve this, they invest along with saving. However, many don’t know how much time it will take for their dream of becoming a millionaire to come true. In such situations, if you could follow a formula to find out how many years it will take to become a millionaire, wouldn’t that be helpful? In this article, we will share a formula that can help you realize your dream of becoming a millionaire.
Follow the 8-4-3 Formula (Rule of 8-4-3)
Many people use the 8-4-3 formula to achieve great returns and invest wisely. By following this formula, you can earn a minimum return of up to 12 percent. The formula is simple: invest in a scheme that offers annual compound interest. Today, there are many schemes available in the market that provide compound interest.
How Many Years Will It Take to Become a Millionaire? (8-4-3 Rule Calculator)
If you invest Rs 21,250 every month in this scheme, you will accumulate Rs 33.37 lakh in 8 years. This is the first step to becoming a millionaire. After that, with the help of compound interest, your Rs 33.37 lakh will grow in the next 4 years, and in just 3 more years, another Rs 33 lakh will be added to your fund. In this way, you will become a millionaire in just 15 years by following the 8+4+3 rule.
Similarly, if you continue to deposit Rs 21,250 every month for another 6 years after 15 years, by the time 21 years have passed, you will have a total fund of Rs 2.22 crore.
The Magic of Compound Interest
Compound interest plays a key role in building a large fund with the 8-4-3 formula. Albert Einstein even called compound interest the “eighth wonder of the world.” In simple terms, compound interest is calculated on the principal amount as well as on the interest that has already been added. This means that you earn “interest on interest.” This makes compound interest a powerful tool for growing your investment over time.