What is the Rule of 144? Most people know the Rule of 72, which tells you how long your money takes to double. But if you're thinking longer term, the Rule of 144 helps. Just divide 144 by your expected rate of return to get the years needed for your money to grow four times. At 9% return, for example, 144 ÷ 9 = 16 years. It's basic, but useful.
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Why it matters for real investors Let’s say you invest ₹2 lakh at age 30, and expect 12% annual returns. That becomes ₹8 lakh by the time you’re 42. If you delay the same investment until age 36, you’ll only have ₹4 lakh by 48. This is not a gimmick—it’s compounding at work. Knowing how long it takes for your money to multiply gives urgency to your decisions, especially when you're young.
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Start small, but start now You don’t need to wait to save ₹1 lakh. Even ₹1,000 a month via SIP in an equity mutual fund, started early, can quadruple in two decades. That same SIP, delayed by just five years, won’t even triple in time. The key takeaway? Consistency beats intensity. People often think they’ll start “when they have more money.” But time matters more than volume when it comes to compounding.
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Inflation is the silent deal-breaker Earning 7-8% may look decent on paper, but if inflation is running at 6%, your real returns are negligible. That’s why parking money in low-yield instruments like traditional savings accounts or long FDs might feel safe, but erodes purchasing power. To actually grow wealth, you need returns that beat inflation over the long term. Equity and hybrid funds are useful here, especially when invested through SIPs.
Adjust your mix as your goals shift At 25, you can afford to be aggressive. At 50, you may want to preserve what you’ve built. That’s why it’s smart to review your portfolio yearly. If you’re nearing a goal—like your child’s college expenses—reduce equity and move to safer debt or liquid funds. Rebalancing doesn’t take long but keeps your risk in check. Don’t let inertia derail your long-term plans.
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Use the rule to plan better, not just faster The Rule of 144 doesn’t guarantee returns—it just gives perspective. It helps you stop thinking short-term and start planning for 15–20 years ahead. Whether you’re building a retirement corpus or saving for your kids’ future, this rule reminds you that time is your biggest ally. Money doesn’t just grow—it multiplies. But only if you give it enough time to do so.
