1.
If you want to double your money within 5 years. Do you know how much return you shall get every year? Here is the calculation:
72 / x (years) = y % (interest)
72 / 5 = 14.4%
Could you find any investment tools that can give you consistent nett return of 15% per year?
If you had invest RM 10,000 anywhere 5 years ago, with 15% compounded yearly, your investment is now worth RM 20,000.
2.
My debt double even faster!
Now, let us look when will your debt could be doubled? Let say, your credit card charges is 20% per annum …
72 / x (years) = y % (interest)
72 / 20% = 3.6 years
If you have RM 5,000 debt on your credit card, it will become RM 10,000 within 3 1/2 years. Wow. So fast huh.
Now, you could manage you finance and portfolio better. Now you shall know why you must look for consistent unit trust fund. That’s why the greatest investor is the most patience person in the world.
Happy investing!
3 Comments
rule of 72? mana dpt formula ni?
u’re using variable x.. nmpk cam multiple lak..
Pakdi: link updated. ada je cerita dekat buku2 finance.
aku try ubah year kepada day
RM10,000 invested
15% daily
in 5 days = RM20,000
right?
the right question is, can achieve or not? (can or not?, ‘ala chinese dalam buli balik tu, sape nama dia tah..)
Pakdi: Mm.. cam tak realistik je dude. Sebab kita trade tak guna compounding concept secepat tu. Money management. 15% daily, 5 days consecutively = RM 7500 sahaja. unless within 5 days kau dapat return 100%
so can or not money management come first la. maybe ada other opinions. key word = compounding interest
bagus2..aku xder basic sgt psl investing, but i really eager to learn this financial stuff. arituh my UTF advisor ader ckp psl Rule of 72 ni.but at dat time aku iye kan la pe dia ckp. bile bacer lg kt blog ni lg byk aku tau..bagus2, very informative.
Pakdi:
rule of 72 mmg UT Consultant belajar dan patut terangkan jugak kpd klien
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