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Have you heard about the rule of 72?  During our college days it is actually being thought in the form of the compounding interest.  Later that I know that this rule is one of the greatest mathematical inventions created by no other than Isaac Newton.  The rule of 72 is actually the simplest form on how to compute on how fast our money will grow.  It is the method of computing how much time will our money will doubled with a given interest.

To make it more simple this is how to compute it:

72/interest rate = the no. of years your money will doubled.

Alright, let’s give an example to give you an idea….

example: Juan invested his money in a bank with a 4% interest annually while Grace invested her money in a mutual fund with an average yield of 12% annually.  How many years will take to double their money?

Juan’s investment:

72/4 = 18 years

Grace’s investment:

72/12 = 6 years

Looking at the two investments portfolio there’s only around 8% difference but that difference makes it about 12 years difference.  You have to take note that in investments the time has a significant roles.  The longer it takes for your money to grow the longer it takes for you to wait.

Do you want to learn more about investments?  It is not too late and it will not cost you a dime because there are free seminars available.  If you are interested feel free to contact me by sending your message here and I am willing to guide where and how to do it….

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