The Rule Of 72
The Power of Compounding
Ever wonder how long it takes your money to double? The Rule of 72 gives you a quick way to find out.
How It Works
Divide 72 by the interest rate you expect to earn. The result is the number of years it takes your investment to double.
- Example: At 6% growth, your money doubles in about 12 years (72 ÷ 6).
Why It Matters
- Shows the importance of starting early.
- Highlights the effect of higher returns over time.
- Demonstrates why inflation eats away at savings if you’re not invested wisely.
Zenith Advisory Inc. Approach
We use tools like the Rule of 72 to show clients how their money can grow and why it’s important to put savings to work sooner rather than later.