Millennials: Learn the Rule of 72
If you feel like you make less money than your parents did at your age… it's because you probably are.
Young Invincibles revealed that Millennials have a median income of $40,581 – 20% less than what Baby Boomers were making in the same life stage. That means less money in a world that costs a lot more.
Less money to spend means less money to save.
You know that saving is important for your future but retirement may seem far away. Reality is, it’s coming sooner than you think. Luckily, there are simple tools to help you start saving now.
This is where a little-known formula called “The Rule of 72” comes in!
What is the "Rule of 72": Take the number 72 and divide it by the annual interest rate. The answer is approximately how many years it will take for money in an account to double.
For example, applying the Rule of 72 to $10,000 in an account at a 6% interest rate would look like this:
72 ÷ 6 = 12
Based on the Rule, it would take about 12 years for $10,000 to double!
Try applying this money tool to your fiscal planning and saving, and you are on the right path to financial success!