Investment Tips: You can become a millionaire by following the 8-4-3 formula..

In today's time, everyone wants to have property worth crores of rupees. For this, he also invests along with saving. But, he does not know how much time it will take for his dream of becoming a millionaire to come true. In such a situation, if by following a formula you come to know after how many years you will become a millionaire, then what to say? In this article, we will tell you about one such formula which will help you in realizing your dream of becoming a millionaire.

Follow the 8-4-3 formula (Rule of 8-4-3)
Many people follow the 8-4-3 formula to get great returns and invest in the right way. By investing in it, you can get a minimum return of up to 12 percent. This formula is quite simple. According to the formula, you should invest in such a scheme which gives annual compounding interest. In today's time, there are many such schemes in the market which are offering compound interest.

In how many years will you become a millionaire (Rule of 8-4-3 Calculator)
If you invest Rs 21,250 every month in this scheme, then in 8 years a fund of Rs 33.37 lakh will be ready. This is the first step to becoming a millionaire. Now again with the help of compound interest, you will collect Rs 33.37 lakh in the next four years, and then in just 3 years, another Rs 33 lakh will be added to your fund. In this way, in just 15 years, you will become a millionaire through the 8+4+3 rule.

Similarly, if you continue to deposit Rs 21,250 every month for 6 years even after 15 years, then in total 21 years you will have a fund of Rs 2.22 crore.

The magic of compounding interest
Compounding interest has a major contribution to creating a big fund with the 8-4-3 formula. Albert Einstein had called compounding interest the eighth wonder of the world. There are two ways of earning investment interest. One is simple interest and the other is compound interest. In simple interest, interest is earned only on the principal amount i.e. the investment amount. Whereas, in compound interest, interest is earned on the principal amount and then that interest is added to the principal amount. In simple words, in this, interest is earned on interest as well.