The Rule of 72 shows you how long it takes your money to double. Invested money: assume an 8% return 72/8%: 9 years for your money to double. Debt: assume an 18% interest rate. 72/18%: 4 years for your debt to double. Make sure this rule works for you, not against you.
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@camp_wealth A great comparison a lot of people don't talk about the debt - there is so much more to building wealth than your return rate.
@camp_wealth I should probably try to get rid of that 72% loan
@camp_wealth I only usually think of the rule of 72 as increasing wealth... I never have thought about it as decreasing with more debt... Very interesting... good point.
@camp_wealth Really eye-opening when you apply this to debt. It shows just how rapidly credit card debt can spiral out of control.
@camp_wealth You should work for a quant hedge fund
@camp_wealth Inflation 72 divided by 18% inflation = costs double in 4 years. That can't be right, my potato chips went up two and a half times in less than 3 years...lol
@camp_wealth Didn't know where this was going, liked how it ended. Good insight!