  |
USING THE RULE OF 72
72 divided by the interest rate equals the number of years it takes an investment to double.
- EXAMPLE: Money invested at 6% doubles in 12 years
(72 / 6 = 12 YEARS)
| If you invest | $1000 | at age 30, it will be |
| $2000 | by age 42 | |
| $4000 | by age 54 | |
| $8000 | by age 66 | |
| $16000 | by age 78 |
LENDERS ARE WELL AWARE OF THIS RULE ALSO
If at age 30 you charge $1000 on a credit card with interest of 18%, and you don't pay it off, that amount doubles for the issuer in 4 years!
(72 / 18 = 4)
THAT MEANS that at age 34 they have now earned $2000. By age 38 it's $4000 and so on, until by age 70 they will have made well over $1,000,000 off the $1000 you charged when you were 30!
