Sunday, September 22, 2019

Double your money

The rule of 72 This simple formula gives you an rough estimate how long does it take to double your money.
There is more precise formula that can be easily found on internet, but this works pretty accurately up to +20% annual rate.

So if you think that you get +8% annual rate of return, you get 72 divided by 8%, which gives you 9 years as an answer. So you will be doubling whatever you had invested in 9 years, if you can get annual rate of +8% for your investment.
I found these estimate calculations motivating and helpful
and I hope you feel the same.

If you need to go deeper to where this formula comes from or want more precise formula, just google it and and you find plenty of articles from it.
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