Ever wonder what it would take to double your money when you save or invest? Your coaches will tell you one way to find out.
Here’s a helpful way to estimate the amount of time or the interest rate you would need to double your money on savings or an investment. It’s called the Rule of 72.
72 / interest rate = Years to double your money
Here’s an example of how it works: Let’s say you have an investment that’s earning 8% per year. Start with the number 72 and divide it by the interest rate, eight. 72 divided by 8 equals 9. This means it would take about nine years for your original investment to double.
You can use the calculator on this screen to try it for yourself. Type in an interest rate and you’ll see how many years it will take your original savings or investment to double. Or if you want, type in the number of years, and you’ll see how high the interest rate would need to be.
We hope that the Rule of 72 will inspire you to earn as much interest on your own savings as you possibly can.
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