I want to give you the financial tools and savings advice to help you achieve financial success
Wednesday, November 4, 2009
Make your money work for you
I am excited today my friends. You may ask why. Well today we are going to start getting how to put money to work for you, instead of you working for your money all the time. The rule of 72 is what is going to make you rich. What is the rule of 72? It is what is used to determine how long it would take your money in a typical investment to double. So lets say you put $100 into a savings account and you get 1% interest, how long would you have to leave your money there for it to double? This is how you figure that out, you take 72 and divide it by the interest rate which is one and you get 72. 72/1=72, so it would take 72 years in that savings account for your $100 to turn into $200. That may sound like a long time; it is a long time. But lets say you take that same money now and put that money into a mutual fund (don't worry ill talk about this later on) and you get 6% on your money how long will it take for your $100 to double? 72/6=12 years. Cool, huh? Now if you leave that same money there for another 12 years your original $100 is now what? $400 dollars. Are you seeing what I am getting at yet. Here is what happened you put that $100 dollars aside for about 24 years and forgot about it, you came back and with no work of your own $100 dollars is now $400. In layman's terms the money money makes, makes money. The rule of 72 isnt taught in school, but is should, it happens to be one of the most powerful forces on the face of the earth.the rule of 72 has the power to change your life, and if you use it you will have everything you ever dreamed of. I would like to keep going because I am so excited, but i want to give you time to look over this and digest it. Start thinking about what the rule of 72 can do in your life
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