THE RULE OF 72 - THE MAGIC OF COMPOUND INTEREST

Are you curious about the length of time it would take for your money to double based on the interest rate you are receiving? The Rule of 72 can provide an easy calculation to help you understand the impact of compound interest over time. Simply divide 72 by the interest rate you are earning to determine the approximate number of years it will take for your money to double.

However, it's important to be aware that banks and finance companies also use the Rule of 72 to their advantage by lending money to consumers at high interest rates while paying low rates on savings accounts. This puts individuals on the wrong side of the Rule of 72 and can lead to the accumulation of debt over time as interest charges compound.

Wealthy individuals, on the other hand, often have a strong understanding of how money works and implement plans to maximize returns on their investments. Unfortunately, many people in Middle America lack the financial knowledge and planning needed for long-term success, resulting in low rates of return on their savings and a lifetime of working for money rather than having their money work for them.