Do You Know the Rule of 72?
November 3rd, 2007 | by Naimp | Posted in Finance | No Comments »How long it will take for your money to double is easy to calculate using the Rule of 72. Simply divide 72 by the percentage of interest you earn on your savings. If you’re not pleased with the answer, start investigating other options that pay a higher rate of return.
The Power of Compound Interest
What a Difference a Percentage Makes!
When you earn interest, your account balance continues to grow. In time, you actually earn interest on your interest! Even one percentage point can make a huge difference in the long run.
If you think putting off saving for your retirement for a few years won’t make much of a difference, take another look. By starting early and giving your money the opportunity to grow over time in a tax-deferred account, you’ll put yourself at a huge advantage in securing the kind of future you deserve.
The High Cost of Waiting
Don’t Make This Mistake!
The biggest mistake you can make is assuming you don’t have any money to save. If you earn an income, it’s simply a matter of how you’re spending it. You can put some money aside each month — if you make saving for your future a priority. The longer you wait the more money you will need to save each month to make up for lost time.
Time is Money
If you begin saving for your retirement early in your life, you’ll have to put aside much less money each month. If you wait until you’re nearing retirement, the amount you’ll need to save each month could be near impossible.
Benjamin Hamilton is an Internet Consultant that specializes in Web Design and Internet Marketing.
He has written over 100 articles that are available on his website. He has also developed a tutorial area for Website Beginner, at his website PlantinHamilton.com