The power of one simple rule!

Updated: Feb 14

Today we are going to talk about a little rule in investing that is powerful. It is called the rule of 72. Have you heard about this rule before? If you have, great! Today will be a nice refresher. If you have not heard about it, today is a game changer.

How can a simple rule be such a game changer? If you understand the rule of 72 you will grasp why investing is important. Taking advantage of the rule of 72 is the only way to retire in the United States of America. Here is the definition of the rule; then we will show you an example of the rule at work.

The rule states that in order to know how long it will take for your money to double you must divide 72 by the fixed interest rate you are getting. For example:

If you are getting 3% interest the formula would look like this: 72 / 3 = 24 years for your money to double. That means if you had $10,000 to invest your money would be about $20,000 in 24 years.

Now let us double the interest rate to 6%. The formula would be 72 / 6 = 12 years for your money to double. 12 years is a lot better than 24 years. Therefore your $10k would be $20k in just 12 years.

But what if you can get 12%? How long would it take to double? Yes, the formula is 72 / 12 = 6 years. Now that $10k becomes $20k in about 6 years.

Why is knowing how quickly your money doubles important? Because it makes a huge difference in your retirement account. Look at the example below:

The effect of your money doubling sooner is the power of the rule of 72! Harness that rule in your favor and the ability to retire is within grasp.

Read here to see real examples of where to get 12% interest. Baby Step 4; Baby Step 4 Continued.

If you have questions don’t hesitate to ask here. Take charge of your money!

Your biggest cheerleader on social media,

Gio Marin

P.S. Day 324 please pray for the 7.2 million goal for 2020


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