The Rule of 72 is a simple trick to estimate how long it takes your money to double: just divide 72 by the interest rate.
Higher interest rates make your money double faster, and over time that creates huge differences in wealth.
Using a $5,000 investment:
At 4%, money doubles about every 18 years → about $10,000
At 8%, it doubles every 9 years → about $20,000 in the same time
At 12%, it doubles every 6 years → about $40,000 after about 18–20 years
The big lesson: small increases in interest rate lead to massive increases in long-term wealth—so making your money grow is far more powerful than just saving it. 💰
0 comments:
Post a Comment