During a workshop I recently led, I suddenly realized that there were some investment concepts that people weren’t familiar with. So, here’s a quick explanation of the Rule of 72!
What Is the Rule of 72?
The Rule of 72 is a quick, useful formula that is popularly used to estimate the number of years required to double the invested money at a given annual rate of return.
For example, if you are earning 8% on your investment consistently, it will take 9 years to double your money. 8x9=72
If you are earning 6% will take you 12 years to double your money: 6x12 = 72
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