1. Rule of 72
Number of years takes to double the money = 72/Interest
Eg. 72/8= 9 years ( So in 9 years with 8% interest rate your money might double)
2. Rule of 114
Number of years takes to triple the money = 72/Interest
Eg. 114/8= 14.25 years ( So in 14.25 years with 8% interest rate your money might triple)
3. How much net worth you should have
Age * Pre-tax income
------------------------ = Net worth
10
Number of years takes to double the money = 72/Interest
Eg. 72/8= 9 years ( So in 9 years with 8% interest rate your money might double)
2. Rule of 114
Number of years takes to triple the money = 72/Interest
Eg. 114/8= 14.25 years ( So in 14.25 years with 8% interest rate your money might triple)
3. How much net worth you should have
Age * Pre-tax income
------------------------ = Net worth
10
No comments:
Post a Comment