What's the Rule of 72 and How Can it Help Me Save?

May 31, 2023


Welcome to Life Designers, a trusted provider of consulting and coaching services in the business and consumer services industry. In this article, we will explore the Rule of 72 and how it can help you save for the future.

Understanding the Rule of 72

The Rule of 72 is a simple mathematical formula that allows you to estimate the time it takes for an investment to double in value, based on a fixed interest rate. It provides a quick and easy way to determine how long it will take for your savings to grow.

How Does the Rule of 72 Work?

To calculate the number of years it takes for an investment to double, divide 72 by the annual interest rate. The result is an approximate estimate of the doubling time.

Applying the Rule of 72

Let's say you have a savings account with an annual interest rate of 6%. By using the Rule of 72, you can estimate that your savings will double in approximately 12 years (72 divided by 6 equals 12). This estimation can help you plan your financial goals and make informed decisions about your investments.

The Benefits of the Rule of 72

The Rule of 72 provides several benefits for savers and investors:

  • Quick Estimation: The Rule of 72 offers a simple and quick way to estimate the time it takes for your money to grow.
  • Financial Planning: By knowing the doubling time of your investments, you can set realistic goals and create a well-structured financial plan.
  • Comparing Investments: The Rule of 72 helps you compare different investment options by evaluating their potential growth rates. For example, you can easily determine which investment will double your money faster.

Additional Tips for Savings and Investments

While the Rule of 72 is a valuable tool for estimating investment growth, it's important to consider other factors when planning for your financial future. Here are some additional tips to help you save and invest wisely:

  1. Set Clear Goals: Define your financial goals and determine how much you need to save to achieve them. This will give you a clear direction and help you stay focused.
  2. Create a Budget: Develop a budget that allows you to allocate a certain percentage of your income towards savings and investments. Stick to the budget to maximize your savings potential.
  3. Diversify Your Portfolio: Don't put all your eggs in one basket. Diversify your investments across different asset classes, such as stocks, bonds, and real estate, to reduce risk and maximize potential returns.
  4. Stay Informed: Keep up-to-date with the latest market trends and changes in the economy. This knowledge will help you make informed investment decisions and adjust your strategy when necessary.
  5. Consider Professional Guidance: Consult with financial experts or seek the assistance of a trusted consulting and coaching provider like Life Designers. They can provide personalized advice and help you create a customized financial plan.


The Rule of 72 is a powerful tool that can assist you in estimating the growth of your savings and investments. By understanding this rule and applying it alongside other financial strategies, you can make informed decisions that will support your long-term financial goals. Remember, at Life Designers, we are here to offer expert consulting and coaching services to help you navigate the complex world of savings and investments. Contact us today to learn more about how we can assist you in achieving your financial aspirations.

Jim Morrison
The Rule of 72 is such a game-changer when it comes to financial planning! It's a handy tool that helps you calculate how long it takes for your investments to double in value. Knowing this can give you a better sense of how to save and build your wealth for the future. It's definitely worth learning and applying in your financial strategy.
Nov 11, 2023