Someone streamed Pirates of the Caribbean: The Curse of the Black Pearl every single day in 2017 – for a total of 365 swashbuckling times.
Now that’s a commitment. How did they make it part of their daily routine? Was it the perfect length for a workout in their home gym? Or for winding down at the end of the day? However they were enjoying it, it was something they did consistently over time. Every. Single. Day.
When it comes to your money, how is your financial routine working for you? What are you doing on a regular basis with your finances? Did you know there’s a tool that you can add to your routine that will keep working for you 365 days a year (and beyond)? And you don’t even have to be connected to WiFi to stream its benefits.
All you need to do is make a habit of setting some money aside in an interest-bearing account, and let it do the work for you using the Rule of 72.
Here’s how it works: Take the number 72 and divide it by your annual interest rate. The answer is approximately how many years it will take for a lump sum of money in an account to double. Applying the Rule of 72 to $10,000 in an account at a 4% interest rate would look like this:
- 72 ÷ 4 = 18
That means it would take approximately 18 years for $10,000 to grow to $20,000 ($20,258 to be exact). This formula really shows the value of finding as high of an interest rate as you can, doesn’t it? Now imagine what would happen to your money if you kept adding funds to your account consistently over time.
This equation may not be quite as exciting as a scene-stealing pirate, but it’s a tool that for 365 days has the potential to grow your money while you’re not even thinking about it. (Now that’s thrilling!) Ready to make it part of your 2018 routine?