PRIMERICA RULE OF 72
Question: "What Is The Primerica Rule of 72?"
Have you ever heard of the Primerica Rule of 72? This is something that most people should be aware of – especially those who are trying to save money for the future. Once you learn about the power of this rule you will have a better understanding of how your money grows, what you should be investing, and how long it will take you to reach your goals.
Simply put, the Primerica Rule of 72 is an easy way to determine how long it will take for your savings to double. If you are like most people you want to know what the future has in store for your money. By taking 72 and dividing by the interest rate of your account, you can see how many years it will take for your money to double. Sounds easy, doesn’t it?
What can the Primerica Rule of 72 do for me? For one, it shows just how important it is to receive the highest possible interest rate. If you think there is no big difference between earning two and three percent, the Rule of 72 will show differently. Just one percentage point can help you double your savings much quicker.
An example of how the Primerica Rule of 72 is as follows. Based on this rule, at three percent your money will double in 24 years. But at six percent it will double in 12 years. Can you do even better than this? If so, you will have twice as much money in an even shorter period of time.
To understand the Primerica Rule of 72 you don’t need much. If you know your interest rate and have a calculator you can determine how long it will take for your money to double.