Double Your Money

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It feels like magic, but it’s just math.

When you’re planning your future, if you don’t model your investment’s growth it’s like driving without a map.

You have to know what to expect down the road, so you can plan, save, and invest now to make that a reality.

But where do you start?

Financial planners have powerful software for modeling the future that reg’lar folks like you and I don’t have access to.

But we do have this…

The Rule of 72

The Rule of 72 is an extremely simple formula to help you figure out when your money is going to double. It works best for compound interest rates between 6-10%, but is still a good ballpark outside of that window.

Here’s how it works: if you know your expected rate of return, divide 72 by that number and you have how many years until your investment doubles.

For example:

• 6% rate of return doubles your money in 12 years (72/6 = 12)

• 8% rate of return doubles your money in 9 years (72/8 = 9)

• 10% rate of return doubles your money in 7.2 years (72/10 = 7.2)

It’s that simple.

When investing you have 3 elements that affect growth: cash put in, rate of return, and time.

You can see how making a savvy investment with a big lump sum shortens your time to doubling, but what most people have are modest amounts with modest returns, and then have to lean on the third factor: time.

If that’s you, there’s no time like the present.

Make an investment in your future today!

P.S. – if you are a small business owner, you will get a ton of value out of the Profit Hiker newsletter. It’s one free gold nugget sent (from me, Simon) three times a week to help you elevate your business.