Rule of 72

Rule of 72

Einstein ever said "Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn't, pays it."

So what as it got to do with Rule 72?

Well, the rule of 72 tell you exactly how many year it takes for you to double your wealth!

For example, if you bought an investment class that gives you 8% return per annum. Using the rule of 72, just use 72 divided by 8, it will takes 9 years for you to double your return simply by reinvesting your 8% return!

So how can we reinvest our returns at zero or no cost?

The video below will explains one of the ways to reinvest your dividends from the stock markets.