Double Your $ With This Rule

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Investing is simpler than you think.

That is, if you have a “set it and forget it” mentality.

If you’re trying to beat the professionals at their own game, however, may the force be with you. Stock picking, day trading, trying to get ahead of the trends – I’ll just say from my own personal journey, it’s really really (really) hard to stay ahead of the pros.

But if you put your money into an index fund and let it cook, in the long run you will win.

And you can figure out exactly how you’ll win with the “Rule of 72”.

The Rule of 72 tells you how quickly you’ll double your money if you know your expected rate of return. It’s not a perfect formula, but it is a really quick rule of thumb.

Here’s how it works:

72 divided by your rate of return = years to doubling in value.

For example, if you are expecting 6%, it would look like this:

72 / 6% = 12 years.

Your money doubles in 12 years.

One last thought.

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