Rule of 72- This rule is an easy way to figure out how many years it will take for money saved to double at various rates of interest. The quick equation is an estimate of the time it takes for money to double. Divide 72 by the projected interest rate. So if I think I'll earn 10% the equation is 72/10 = 7.2 years for money to double. If I think I will earn 6% the equation is 72/6 = 12 years for the money to double.

Rule of 114- this quick estimate will tell you how many years until your money triples. Divide 114 by you projected rate of interest. So if I earned 10% the quick equation would be 114/ 10 = 11.4 years. At 6% the equation is 114/6 = 19 years for money to triple.

Future Value of MONEY- Just add a zero- This quick estimate may help make your spending plan a savings plan! When you are thinking of buying an item, perhaps one you are trying to talk yourself out of, wouldn't it be great to know how much you might have saved if you had socked that money away and saved it? What might that money be worth 30 years from now at earning 8% interest? Just add a zero to the cost of the item!

So, you want a new computer and it'll be $1200. You don't really need the computer but you have the money…According to this money estimate, If you saved that $1200 for 30 years and earned 8% you'd have $12,000.

These quick tips are little tools to help give you the incentive to save for your future. Try them out and pass them on!

Citations:





Marion R. Syversen, MBA - President
NorumbegaFinancial
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Marion@NorumbegaFinancial.com
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