Rule #72 - A Financial Lesson

Here is a simple financial rule to add to your knowledge bank. It is the Rule of 72. It is a way to calculate compound interest in a nice easy estimated way.

All the rule does it help you determine the number of years needed to double your money at a given interest rate. So if you have saving account and the current balance is $3,500 at an interest rate of 3% this rule will let you know how long it will take to get to $7,000 (minus the deposits you will be making during that time).

Formula: 72 divided by the interest rate = number of years to double.

Or just go here and use a Rule of 72 calculator.

- Because there is nothing worst than a broke savvy lady:(