There is a nice simple formula for determining how long it will take to double your money when you make a certain percentage per year. It is called the rule of 72. The mechanics are easy to follow. Divide 72 by the percentage you hope to have your investments return per year. Unlike regular math where you convert the percentage into a decimal, you do not use the decimal equivalent for this calculation.
Let’s assume that the market will give me an 8% return on my money. I divide 72 by 8 and come up with 9 years. This assumes you keep your annual returns in place and use the effect of compounding. What if you could increase the return by just a little? Let us say one half of one percent per month or 6% a year. Rather than taking 9 years to double my money, it would take a little over 5 years to double.
Is it possible to increase your return? It is not uncommon for those who take charge of their financial future and learn some of the methods offered in courses at this website to achieve monthly returns of 1 to 3 %. This translates to 12% to 36% per year. Is it worth it to spend a little time and effort to learn? You decide.