Tuesday, July 10, 2018

The Rule of 72

The "Rule of 72" is a simple investment rule that everybody should learn.  Basically it states that you take an proposed constant interest rate and divide that into the number 72 and it will give you a rough idea of how long it will take to double your money.  As an example dividing a 10% rate of return into 72 says you will double your money every 7.2 years.  Earlier in the week we introduced you to the folks over at "Napkin Finance" who also recently did a visual on this same subject.  As such, I'm including it as well as a link to their page explaining this subject below.