Investing Rules

6 Essential Investing Rules with Formulas You Should Know in 2025

Learn the 6 most powerful investing rules, including the Rule of 72, 114, 144, and more. Discover how to double your money, beat inflation, and allocate assets smartly.

📌 Introduction

Are you new to investing and feeling overwhelmed by complex strategies? Don’t worry — these 6 simple investing rules will help you make smarter financial decisions. Whether you’re planning for retirement or just starting your mutual fund journey, these formulas are timeless and beginner-friendly.

🧮 1. Rule of 72: How Fast Can Your Money Double?

Formula: 72 ÷ Interest Rate
Purpose: Calculates how many years it will take to double your investment at a fixed annual interest rate.

Example:
If your mutual fund returns 8% annually:
72 ÷ 8 = 9 years
Your investment will double in 9 years.

🔁 2. Rule of 114: Tripling Your Wealth

Formula: 114 ÷ Interest Rate
Purpose: Find out how long it takes to triple your money.

Example:
With an 8% return:
114 ÷ 8 = 14.25 years

🔁 3. Rule of 144: Quadrupling Your Money

Formula: 144 ÷ Interest Rate
Purpose: Calculates how many years your investment needs to quadruple.

Great for: Long-term investors and retirement planners.

💸 4. Rule of 70: The Hidden Danger of Inflation

Formula: 70 ÷ Inflation Rate
Purpose: Tells you how many years before inflation halves your money’s purchasing power.

Example:
Inflation = 5%
70 ÷ 5 = 14 years
Your ₹10,000 today will buy only ₹5,000 worth in 14 years.

📊 5. The 110 Rule: Smart Asset Allocation by Age

Formula: 110 – Your Age
Purpose: Helps you decide how much of your portfolio should be in stocks.

Example:
Age = 30
110 – 30 = 80
Invest 80% in equities, 20% in debt instruments.

🛟 6. The 3–6 Rule: Emergency Fund Essentials

Formula: Save 3 to 6 months of your monthly expenses
Purpose: Prepare for job loss, health issues, or emergencies.

✅ Final Thoughts: Apply These Investing Rules Today

These simple but powerful rules — from the Rule of 72 to the 110 Rule — provide a practical foundation for financial growth. Whether you’re investing in mutual funds, SIPs, or stocks, applying these formulas will guide your journey and protect your wealth.