There’s Magic in the Number 72
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Few people seem to be aware of the amazing power of the number 72. It has a unique ability to tell just how long it takes to double one’s money. You can take any rate of return and divide it into 72, and it will tell you exactly how many years it will take to double the amount.
For example: If you have a rate of return of 10%, divide 72 by 10 and it comes out to 7.2. In other words, it will take 7.2 years at a 10% rate of return to double. If you have a 5% return, divide 72 by 5. The answer = 14.4 years to double.
You can also reverse the process. If you want to know what percentage rate you need in order to double your money in 10 years, divide 72 by 10. The answer is 7.2%. This is an easy method of predicting how much one’s money will grow over time. I learned this simple truth very early in my life, and it has been a very motivating factor in encouraging me to work hard, earn more and invest.All young people should learn this valuable lesson. Hopefully it will help to overcome society’s big money problem.*
It’s rash not to include the cash. Money doesn’t buy happiness, but it buys a lot less misery. If your outgo exceeds your income, your upkeep will be your downfall.
*People spend money they haven’t earned yet, on things they don’t need, to impress people they don’t like.