The Rule of 72 - What's in your wallet?

Have you ever heard of the "Rule of 72"? I had, but it was a very long time ago. Probably back in my college days. I probably wasn't paying close attention that day. When you are thinking about how much money you need to save in order to retire, it is helpful to know how fast your money can grow. The "Rule of 72" will let you quickly calculate an estimate of how long it would take any amount of money to double in value. All you need to do is take the number 72 and divide it by the interest rate you expect to get for your money. The result is a fairly close approximation of the number of years required to double your money. For example, if you have $25,000 in your savings account, and you expect to earn 8% interest on your money, then it should take approximately 9 years for the $25,000 to grow to $50,000. At 4% it would take 18 years to reach $50,000. This is a quick and dirty way to see the power of saving. It pays to invest your extra cash so that you take advantage of this growth opportunity . Let compounding interest pave your way to retirement. Sam says: "Whats in your wallet?"