The Rule of 72: Your Shortcut to Wealth Building

Want to know when your money doubles? There’s a simple formula: divide 72 by your annual return rate.

Invest $10k at 7% yearly? 72÷7 = 10.3 years to double. That’s it. No magic, just math + time.

Why This Actually Works

Compound interest is the MVP here. You’re not just earning returns on your initial investment—you’re earning returns on your returns. Reinvest those gains, and exponential growth kicks in automatically.

The Boring But Effective Plays

Index funds & ETFs: S&P 500 historically averages 7-10% annual returns. Diversified, low fees, set-and-forget.

Dividend stocks: Steady income + reinvestment = accelerated growth. Pick companies with sustainable payout ratios.

Dollar-cost averaging: Invest $500/month regardless of price swings. You buy more shares when they’re cheap, fewer when expensive. Your average cost drops over time.

The Higher-Risk Moves

Growth stocks and real estate can double your money faster—but volatility is real. Growth stocks pump profits back into the business instead of dividends. Real estate requires upfront capital and active management (unless you go the REIT route).

The Unsexy But Crucial Part: Your Mindset

• Don’t chase short-term gains. Market noise is noise. Stick to your strategy.
• Rebalance regularly. Stocks grow faster than bonds? Rebalance to keep risk consistent.
• Max out tax-advantaged accounts (401k, Roth IRA, HSA). Many employers match 50 cents per dollar—that’s free money.
• Keep learning. Markets change. Your strategy shouldn’t be frozen in 2015.

The Reality Check

Doubling your money is realistic—but not overnight. Quick double? Requires gambling-level risk. Slow and steady (7-10% annual returns)? That’s the proven path.

The catch: There are no guarantees. Anything promising quick, risk-free doubles is a scam. Period.