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.
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.
Your rate of return refers to the expected returns generated from your investment.
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:
- Savings accounts
- CPF Ordinary Account
- Bonds, like Singapore Savings Bonds (SSB)
- CPF Special Account
- Index Exchange-Traded Funds (ETFs)
- DIY stock-picking
Here’s a closer look at how you should apply the Rule of 72 to your investments.
It’s really as simple as it sounds.
This breakdown shows the approximate time it’d take you per investment to double your $$:
And if you’re still feeling lost, these tips on investing are perfect for beginners like myself.