I really did not know I was being robbed because of one financial rule…
The rule of 72
Let me explain what the “rule of 72” actually is.
According to Investopedia:
The rule of 72 is a shortcut to estimate the number of years required to double your money at a given annual rate of return. The rule states that you divide the rate, expressed as a percentage, into 72:
Years required to double investment = 72 ÷ compound annual interest rate
In simple terms take 72 and divide by your interest rate on your investment and thats when your money will double.
Let’s put some numbers to it, of course:
We have $5,000 invested in an account gaining 8% interest.
(72/8=9 years) This means at 9 years our $5,000 will grow into $10,000. Not too bad huh…
But here is the deal, it can turn into against you as well. Every time you spend any money outside of investing, you are forfeiting the rule and giving your money away for free.
I know it sounds radical however, it is explained more by my business partner Mr. Jon Pettiford-El in this video below. Also drop him a like over at his page here if this video gives you value!