The Power of 72

This is a quick way to calculate how long it will take to double your money if it is invested at a particular interest rate. It is all about the power of time. You take the interest rate you expect to earn and divide it into 72. If you expect a return of 6%, 72/ 6 = 12, it will take 12 years to double your money

 

Take a closer look. You are 24 and have $3,000 in savings. You put it in an account that you expect to earn 8%. According to the Power of 72, it will take 9 years to double your money, so at age 33 you will have $6,000 if you add nothing more to the account. At age 42 you will have $12,000 and at age 60 have $48,000 from a $3,000 investment. Your money is working for you. All you had to do was to leave it alone!

Here's How It Works

Take a closer look. You are 24 and have $3,000 in savings. You put it in an account that you expect to earn 8%. According to the Power of 72, it will take 9 years to double your money, so at age 33 you will have $6,000 if you add nothing more to the account. At age 42 you will have $12,000 and at age 60 have $48,000 from a $3,000 investment. Your money is working for you. All you had to do was to leave it alone!