A lot of blogs teach you How to Make Money Online, today’s Good Morning Sunday post will teach you How to Double Your Money.
Albert Einstein discovered the compound interest Rule of 72. Referring to compound interest, Albert Einstein is quoted as saying:
“It is the greatest mathematical discovery of all time, the ninth wonder of the world”
Compounding indeed is a great tool to increase your investments and money at a faster rate. The Rule of 72 is very simple to apply and can give you the time period where by your investments can double, given a fixed annual rate of interest.
By dividing 72 by the annual rate of return, you can get a rough estimate of how many years it will take for the initial investment to duplicate itself.
For example, the rule of 72 states that $1 invested at 10% would take 7.2 years (72/10 % =7.2 years, that is 72 / interest rate % = number of years for your money to double) to turn into $2. The rule is fairly accurate to determine the time period at low interest rate. Of course inflation is also something that you need to cover but its a neat little trick to get a time frame to double your investment.
If you want to know how long will it take $1000 to double when the interest rate is 6% you can use the same rule to calculate the time period. Divide 72 by 6 which is 12. 12 is the number of years it will take for $1000 to double at a 6% interest rate.
All you need to do is remember that 72 divided by the interest percentage is the number of years it takes to double…… How cool 🙂
Best said in Albert Einstein’s Words
Now spend sometime looking at the number below
Watch how fast the number doubles, you can make a better financial decision by using the rule of 72 and end up with better investments, more money at the time or retirement.
This is a very simple math rule I pick up while I was reading Ramit Seth’s – I Will Teach You To Be Rich , New York Times best-selling book on personal finance tips that will save you thousands of dollars by the time to complete reading it. The book is based around the four pillars of personal finance— banking, saving, budgeting, and investing and the wealth-building ideas of personal entrepreneurship.
The Rule Of 72 Compound Interest – Not E=mc2 was Einstein’s Greatest Discovery
Use your Sunday to invest in yourself and your business, saving and investing small money wisely can make a big financial impact on your online business in the long run.
Have a Happy Sunday and a Great Week Ahead 🙂