Get Wealthy In

Do you want to know how Compound Interest works for your money? Do you want to know how to double your money for a period of time say in years? Do you know about the RULE of 72? Do you want money work for you instead you working hard for the money? Do you want to get wealthy? Knowing the secrets of the wealthy is in your hand! Please read below:

Trivia:

“Albert Einstein called compound interest as the 8th wonder of the world and mankind’s greatest invention, because it is the mightiest force ever unleashed for the amassing of wealth”

How is Rule of 72 computed?

- It is dividing the value of 72 by the interest rate per period to estimate the number of years it takes for your money to double.

Example: If you have Php 100. When will this become Php 200?

Answer: W e have to apply the Rule of 72 and in depends on the interest rate where you put your money at.

* Scenario 1: Bank- it will give your money 1% interest rate per annum. But consider taxes, it might give you less than 1%, say .66% perhaps. This is on regular savings. You may get 4% interest rate per annum if you put your money in time deposit in the bank. Computation: 72/1=72. It means, it will take 72 years for your Php 100 to become Php 200.

* Scenario 2: Bonds- these are certificate of indebtedness issued by the government or any company who wish to borrow money from you with the promise to pay you out after a certain period (say 3 years) with a guaranteed interest rate. This is SECURED and NON-RISKY investment of your money. Most of them will give you 4% to 6% interest only per annum. Way better than 1% right? Let’s take at 4%. Computation: 72/4=18. It means, it will take 18 years for your Php 100 to become Php 200.

* Scenario 3: Stocks/Equity- these are shares or certificate of ownership issued by companies or corporations if you acquire a portion of their outstanding shares offered to the public. This is a risky investment but it may give you more than 12% or let’s say 100% or 200% or more of your money! But taking the risk is ok if you know how to manage your investments. Let’s take 24% rate of return. Computation: 72/24=3. It means, it will take 3 years for your Php 100 to become Php 200.

* Scenario 4: Mutual funds- it allows many investors (individuals, banks, companies, etc.) to pool their money and Professional Money managers will invest it in a diversified portfolio of securities (bond and/or stocks). It is recommended for NEWBIES who wants to try the stock market. It is “quite” non-risky or may be risky. So, it’s important to know what mutual fund to invest in. It may give you like 8% or more. It depends on how your Professional Money managers invested your money to give you the highest return possible. Let’s take 8%. Computation: 72/8=9. It means, it will take 9 years for your Php 100 to become Php 200.

There you go, that’s the power of Rule of 72. It is easy to compute. Now, you know already where to put your money to double it! It’s just choosing the options above, if you have questions or suggestions, you may leave a reply below or go to our FORUMS or chat with ME.