Posted by admin | Posted in frugal living series | Posted on 03-10-2009
Living frugal involves saving money in many different ways, whether you are finding a better deal on car insurance or just stashing away some dollars from every paycheck. Remember also, you should always pay yourself first – one of my golden rules. If you are not stuffing a sock full somewhere and actually investing your money, how will you know how fast it will grow?
- Doubling Your Dollars
This is where the old Rule of 72 can give you an idea of how fast your gopher hill can become a mountain! It is really an old formula, but the Rule of 72 can still give you some valuable information about an investment.
To find out how long it will take an interest-bearing instrument to double in value, divide 72 by the interest rate that you will be earning on this investment
72 / 20 percent = 3.6 years
72 / 10 percent = 7.2 years
72 / 8 percent = 9 years
72 / 5 percent = 14.4 years
:B
