#MoneyArth

6 Thumb rules for your financial queries Knowing financial rules can do wonders for you, be it in investing or in your day-to-day activities. There are thumb rules that can solve financial queries in no time. Rule of 72 The rule can tell you how fast you can double your money. Divide 72 by the interest rate at which you are compounding your money, and you will arrive at the number of years it will take to double in value. For instance, you money will double in 3 years if you are compounding at 24 per cent (i.e. 72/24 = 3 years). What is Rule 72? Rule of 114 One can use this method to estimate how much time it will take to triple the wealth. Here you have to divide 114 by interest rate to get in how many years your money gets tripled. Rule of 144 Like the above two rules, the rule of 144 tell investors in how much time their money or investment will quadruple. For instance, if the interest rate is 12 per cent, Rs 10,000 becomes Rs 40,000 in 12 years. Rule of 72...

Use these psychological hacks to control your spending and save enough to reach all your financial goals comfortably. You vowed to wake up early, go for a jog, eat a healthy breakfast and then head to work. Instead you hit the snooze button, dragged yourself out of bed, rushed through your morning routine and went to work without achieving any of the goals set the previous night. Often, our financial goals receive the same treatment. We know that spending sensibly and saving regularly ensures financial security. Yet, many of us cannot save as much as we want to. Some of us don’t have the required surplus. Others put off savings for later, prioritizing immediate wants over future needs. Is there a way out? Some people set their clocks 10-15 minutes ahead to make sure they are not late. Although the individual knows that the actual deadline is still 10-15 minutes away, he is forced into action to meet the virtual deadline. Such tricks can be very helpful in financial matte...

Instead of parking your cash in a savings bank, why not put it where it fetches higher returns? A liquid fund is such an option. The risk in it is minimal, though not completely absent. Here’s how to make the most of a liquid fund. What is it? A liquid fund is a debt mutual fund scheme. You use it if you have excess cash and think you might need the cash in a few days or weeks or months. If you wish to invest a large sum in an equity fund, but want to stagger the investments over a period, put your money in a liquid fund and enrol for a systematic transfer plan (STP) whereby you invest a fixed sum from your liquid fund to an equity fund each month. Returns and Risks Your liquid fund, like every other mutual fund scheme, invests in securities that have a market price. When market price of these securities moves up or down, so does your mutual fund’s net asset value (NAV). But a liquid fund’s NAV doesn’t move up or down as much as other funds. Here’s why. As per rules...