04/24/2020
Friends, let's talk about a simple concept in the financial industry that some may not be aware of: The Rule of 72. This rule postulates that if you divide 72 by an assumed return on your investment( If I may add, your debt), then the result represents the number of years it will theoretically take your money to double in value. So if you were to position $10,000 in a vehicle that returns 8% consistently, your money would have doubled in value ($20,000) in 9 years (72/8=9). Now before you celebrate, know that the same rule will work against you if your debt was growing at the same rate. Now think how fast your credit card debt accelerates with an average rate of 18% annually. Using the same example of $10,000, your debt of $10,000 would become $20,000 in as little as 4 years. 72/18=4. To learn more about how to get out of debt systematically, click on the learn more button or reach out to me by phone or email.
