Money is not the only measure of wealth. What matters is how much you can multiply the money that you have, not how much you are earning because what you earn, you spend all of it. This will determine how comfortable your life will be. 

Doubling 625,000 to 1 crore

Let’s say you have an investment goal of Rs. 6 lakhs and want to double it. Four successive doublings will take you from 6 lakhs to 1 crore. To get there, you can invest in a good property and earn rental income that helps you reach your target.

Let me explain it to you by giving a small example. You have only 625,000. 6 lacs is not that big amount. It’s a very small amount. But to reach 1 crore from this 6 lac and 25 thousand, what do you have to do? You will only have to double this money four times. 

From 6 lacs to 12, from 12 to 24, from 24 to 48. If you double it almost four times, you’ll get 1 crore. If you look at it, 1 crore seems like a big amount to reach from 6 lacs. 

But if you think about it, if you expand your minds, then what is this?

You can double your money every 5 years if you invest wisely. By investing in the right property and in the right place, you can make your money grow faster.

Doubling 1 crore to 1 billion

Now there are 1 crore rupees. To reach 1 billion, what is to be done?

You would only need to double it 6.5 times. By doubling 6.5 times, your 1 crore will be converted to 1 billion. And even if you double it 6.5 times in 5 years, which is something a mediocre person does. 

In addition to defense saving certificates, there were other ways to double your money in the past. But if you invest in property, in an apartment, in the right place, you can speed it up as well. Your money will reach 1 billion in less time.

The Power of Compounding

The power of compounding can be understood with the following example:

You’ve invested 1 crore rupees. If you’ve taken a 20% rate of return on that 1 crore, you’ve received 20 lacs rupees on that 1 crore.

Technically, what do you have to do next year?

You'll have to reinvest the profits from your next 20 lac from the previous year. That will be your next 1 crore 20 lakh rupees to invest. You'll keep expanding your business the following year. 

This is what investment experts mean when they say that "you can turn a small amount of money into a large amount of money over time" through what they call "compounding."

Rule Number 72

In simple words, if you make 20% per year, how long will it take you to double your money? It takes 5 years if you double your money every so often, i.e., 100 divided by 20 is 5. But what happens in compounding? It has a magical rule that doubles your wealth every 4 years.

What is that magical rule?

It is rule number 72. According to rule no. 72, the rate at which your property is doubling, your business is doubling, and anything is doubling or being compounded. Divide that by 72; it can calculate the year when your wealth will be doubled. For example, a property or an apartment is being compounded at 20%. Now you have to see how much time it will take to double my money. 

What will you do?

Divide 72 by your chosen rate of return, and you’ll see how much money you will have accumulated in 3.6 years, assuming that you reinvest that money to accumulate more wealth. If you don’t reinvest, it will take 5 years to double.

Here’s the secret to doubling your fortunes. You need to expand your thinking. If you make your thinking rich, things will become easy for you automatically. It’s that easy. There is nothing complicated about it. You doubled 625,000 here 4 times and made it into 1 crore. You doubled 1 crore 6.5 times and made it into 1 billion. 

So these are the small things; you can make more and more through the right investing!