Ever wondered how long it will take for your money to double without using any complicated formulas or Excel sheets?
Let me introduce you to a magical shortcut that even the world’s wealthiest investors use…
It’s called The Rule of 72.
Here’s how it works:
Just divide 72 by your annual net return (%) — and boom!
That’s the number of years it will take for your money to double.
Yes, it’s that simple.
Let’s say you invest Ksh 500,000 in an asset giving you different annual net returns.
Here’s how long it would take to double to Ksh 1,000,000:
Net Return (%) – Years to Double (72 ÷ %)
- 8% — 9 years
- 10% — 7.2 years
- 12% — 6 years
- 14% — 5.14 years
- 16% — 4.5 years
- 18% — 4 years
- 20% — 3.6 years
- 22% — 3.27 years
- 24% — 3 years
- 26% — 2.77 years
Now pause and reflect for a second…
At 8%, you wait 9 years to double
At 24%, you do the same in just 3 years!
This is why your return on investment matters.
Not every opportunity is created equal.
The faster your money doubles, the sooner you hit your financial goals.
But don’t be fooled by flashy returns — higher returns often come with higher risks.
So make sure your investment matches your risk appetite and financial plan.
The Rule of 72 reminds us of one thing:
Time and return are best friends when it comes to building wealth.
Start early. Be consistent. Choose smart returns. And let your money multiply like clockwork.
Share this with someone who needs to understand this!
Alex Mwangi | Your Personal Finance Architect
Helping You Master Your Money | Build Wealth | Protect Your Legacy
Visit My Resource Hub Here: https://linktr.ee/centwarrior
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