Happy Monday Everyone!
I hope you had a fabulous weekend, celebrating with the men in your life š¤.
For the past 2 weeks, we did a Q and A recap on what financial advice we’ve discussed so far.Ā Ā Again, congratulations to Mrs Jax for winning the 15.00 for a meal of her choice.Ā Have you ever wondered how long it would take for your money to double if it is sitting in a savings account?š¤
Well wonder no more!Ā Here is a simple way to calculate the growth.
Rule of 72
In order to see how your money will grow, use the Rule of 72 calculation.Ā All you need to do is take the percentage rate you’re earning and divide it by 72.Ā The answer to this equation is how long it takes for your money to double!
Ex:Ā Let’s say you have $2000 you are looking to deposit into an account and are earning 6% on an account, you would divide the 6% by 72.Ā This would give you 12. That means your money would double every 12 years, including compounding interest!Ā 6Ć·72=12š
Start off amount: $2000
Year 12 $4000
Year 24 $8000
Year 36 $16000
Note: This is if you leave the money in the account to grow, are earning this percentage and are in a “safe account”Ā that’s not in a volatile investment market.
Remember, most likely no banks are paying 6% on any account at this time, šso make sure you are looking at options that will help you maximize your investments.
If you have any questions, please feel free to respond here or email me at : thefinancialcomforter@gmail.com
Have a beautiful and blessed weekš¤
Changing the lives in our community….one family at a time
