Introduce a method of "multiplication" in financial management. I hope everyone can learn to take care of their assets in a double way. Imagine that 1 grain of rice is multiplied by 64 times and finally becomes180 billion grain of rice. Then how about changing that grain of rice into 1 yuan?

In fact, the "multiplication" of financial management has achieved amazing benefits through the clever use of "compound interest".

Multiplication, the law of increasing wealth, is well known to people who are proficient in financial management and investment and financial management. Call it the "72 Rule".

Since one year's investment 1000, 35 years' financial management and a 3% rate of return can turn the principal of 35,000 into more than 60,000, can you figure out how to double your wealth more quickly under the effect of compound interest? We will use the "72 rule" to explain this problem, and at the same time introduce you to the method of doubling your wealth.

Before calculating how long it will take you to double your assets, first determine a condition, the annual interest rate that can be realized by investing in wealth management. You also need to ensure that you will not use the principal and profits in the process of investment and financial management.

According to insiders, the name "72 Rule" comes from the calculation method. If the annual interest rate of investors' capital gains is 1%, it will take about 72 years to double the capital, which is what we call doubling. According to the correspondence between 1% and 72, the result is that the number of years you need for investment and financial management will double.

For example, if a person invests 10000 yuan in the stock market, the annual rate of return is 10%. According to the "72 Rule", the calculation process is as follows:

1: 10=x:72x=7.2 years, and the result is: after 7.2 years, 10000 yuan becomes 20000 yuan. If this person does not use this fund, the stock market can basically maintain the annual income of 10%, then 14.4.

Here is a detailed comparison for everyone. The table of asset multiplication years formed by the "72 Rule" is as follows:

Investment and wealth management products with annual income 1% need to double their assets in 72 years;

Investment and wealth management products with an annual income of 2% need to double their assets in 36 years;

Investment and wealth management products with an annual income of 3% need to double their assets in 24 years;

Investment and wealth management products with an annual income of 8% need 9 years to double their assets;

For investment and wealth management products with annual income 10%, it takes 7.2 years to double the assets;

For investment and wealth management products with an annual income of 20%, it takes 3.6 years to double the assets. ...

It should be reminded that the "72 rule" is strictly limited by many conditions, and in many cases the calculation results will have slight deviations. Therefore, the "72 rule" is only a rough estimation method suitable for personal investment and financial management, and cannot be applied to professional fields.

How to improve the rate of return

What investors are most worried about is not that the principal paid is too high, which narrows the average annual rate of return, or that they are afraid to enter the market when the market rises, and they are afraid of entering the market too early when the market falls and suffer losses. Investors always want to choose the best time. When is the investment accurate? In fact, whether they are chasing high or touching low, they just want to improve the return on investment. Is there any way to solve this problem?

Regular fixed financial management method

Month 123456 total unit

Average cost monthly quota

Take the following price average investment method as an example, which can also be called regular fixed investment financial management method.

An investment manager plans to invest 3,000 yuan in principal and wants to buy more investment and wealth management products at the most reasonable price. The following table demonstrates three possibilities, among which the fixed investment financing method can obviously improve the rate of return.

Buy 3,000 yuan at a time, the market price is 10 yuan, buy 300 sets, buy 50 sets every month, and buy 300 sets after 6 months, but the average cost per set is 9 yuan, and the monthly quota is 500 yuan. After 6 months, the total investment is 3,000 yuan, but you can buy 350 sets, with an average of 8.57 yuan per set.

Understanding of risks and rewards

For most investors, the concept of risk can be summed up as a question "Will I suffer losses?" The key factor of any investment and financial management strategy is to find a balance between risk and return.

Simply put, in order to seek greater returns, such as higher investment and financial returns, you have to take higher risks. If you want to reduce risks, you have to bear lower returns. You can't eliminate all kinds of risks.

Among the three basic asset types, cash investment and wealth management (such as money market accounts and certificates of deposit) has the lowest risk, bonds have a moderate risk and stocks have the highest risk. However, cash investment and financial management have the lowest income, and stocks may have the highest income. This is the importance of diversifying investment and financial management.

Your initial idea may be to preserve the value of savings by choosing conservative investment and financial management methods, which will really keep the value of funds stable and the short-term risk is low. If you want to make long-term investment, you must bear the short-term risk brought by higher price fluctuations, so as to reduce the long-term risk of inflation eroding the value of savings.

This means that if you make long-term investments, fund stocks (which will generate higher returns than bonds and cash investments) will be the main variety in your portfolio.