Ready To Double Your Money? The Rule of 72, Explained
 
134
shares

Ready To Double Your Money? The Rule of 72, Explained

Rebecca Liew
134
shares

As a twenty-something millennial (ugh) who’s at long last saved a decent amount, I’ve now begun looking for ways to grow my savings.

On that, here’s a safe way to double your money in a fixed number of years – in what’s known as the Rule of 72.

Rule of 72 Comic 1

What Is The Rule of 72?

It’s a formula that determines the duration needed for an investment to vest. Of course, it’s purely a guide – though a rather reliable one.

Rule of 72 Comic 2

Your rate of return refers to the expected returns generated from your investment.

Rule of 72 Comic 3

Identifying Your Investment Timeframe

It’s important to set a deadline for yourself. For instance, are you hoping to double your money within a certain number of years? Working backwards from there would help you decide whether your investment is worthy of your time.

What Should I Invest In?

These are some places you could consider planting your investment money:

Here’s a closer look at how you should apply the Rule of 72 to your investments.

Rule of 72 Comic 4

It’s really as simple as it sounds.

This breakdown shows the approximate time it’d take you per investment to double your $$:

How many years to double your money?

And if you’re still feeling lost, these tips on investing are perfect for beginners like myself.

Ready for more? Find out how to allocate your monthly salary using the 50-30-20 rule!

Whether you love or hate our content... WE WANT TO HEAR WHAT YOU THINK!

About Rebecca Liew
Lactose-intolerant, but also BS-intolerant. Having written for the likes of Marina Bay Sands and Time Out, I now spend my days saving up for my stationery shop retirement dream.
You can contribute your thoughts like Rebecca Liew here.

Still have more questions after reading the article? Fret not, ask our community here!

Stay updated with the latest finance tips!
Receive bite-sized finance on Telegram here.

What's Popular

    • Loading articles
    • Loading articles
    • Loading articles
    • Loading articles
    • Loading articles
Comments
134
shares

What's Popular

    • Loading articles
    • Loading articles
    • Loading articles
    • Loading articles
    • Loading articles

Still have more questions after reading the article? Fret not, ask our community here!