What Is The Rule Of 72

What is the Rule of 72?
The Rule of 72 is a simple way to determine how long an investment will take to double given a fixed annual rate of interest.
By dividing 72 by the annual rate of return, you can get a rough estimate of how many years it will take for the initial investment to duplicate itself.
You can also reverse engineer the Rule of 72 by finding out at what growth rate will it take to double a certain metric of a fixed period of time.
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My mission is to provide my viewers with actionable content that enables them to create financial wealth. My videos are a reflection of my real-world experience as a real estate investor, stock market investor, student of finance, and entrepreneur.
This channel allows me to share my passion for personal finance, stock market investing, real estate investing, and entrepreneurship. I produce content that I would want to watch, and because of that, I give 100% effort in every video that I make. I also believe in complete transparency and open communication with my audience.
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DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments.
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[@WhiteBoardFinance]

*Have you ever heard of the rule of 72 before this video? Let's get this video to 2k likes!* P.S. - A BIG shoutout to all the people who subscribe to my channel just to give my videos a downvote, you're my biggest fans! :)

[@seanfonteyn]

Legend

[@Adam-lv1uu]

what you are teaching is sacred geometry, you Mason. no wonder you have such a sinister smirk on your face.....

[@WhiteBoardFinance]

@@Adam-lv1uu yes my Eastern European immigrant parents are Masons. you got me. LOL!

[@RealLifeMoney]

Lol that got pretty deep quick! Wisdom exposed

[@DanielIles]

Some people really are out here just to ruin a day

[@smartjoe5258]

I'm a HS senior ,and I never heard about this rule before. Something is wrong with the educational system.

[@WhiteBoardFinance]

agreed!

[@EmpressofChrist]

Agree

[@rudistorm3348]

You are now way ahead of the game. Save your money in index funds and you will be a millionaire by the time your 50. Live modestly and use your money on investments.

[@bamaboy9133]

They did teach this just in a different form in algebra 1 and 2 in high school. Same concept and principle. Just different topic.

[@bettye444]

Smart Joe No joke.

[@Vodoo954]

Robs Rule # 32. Told a 30 year old recently, if you’re not a millionaire by 70, you’re doing it wrong. I try to help kids by showing them how to get ahead by planning. I use the rule of 72 frequently along with my 70 years of life experiences. I hope a lot of youngster see this, you explain it so simply. Kudos, excellent!

[@corrySledd]

Despite the fact that stock prices fluctuate, what is the best method for capitalizing on the current market? I'm still undecided about investing $400k in my stock portfolio.

[@AUstinnesc]

The market is volatile at this time, hence I will advice you get yourself a financial advisor that can provide you with entry and exit points on the share/etf you focus on.

[@sheltonPston]

I was recently through an investing nightmare during the crash in march 2020. With the assistance of my advisor I have so far grown my dwindling portfolio of $145k to $480k

[@corrySledd]

Pls who is this coach that guides you? I’m in dire need of one

[@sheltonPston]

My consultant is Nicole Desiree Simon She has since provide entry and exit points on the securities I focus on. You can look her up online if you care for supervision.

[@corrySledd]

Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.

[@ericwilde4583]

If you invest $200,545 into the S&P, then assuming a 10% annual rate of return, your child at an early retirement age will be 2 Million plus rich, excluding every other income channeled to this. We need to invest much more. Focus on the company not just the stock price, true words from my F.A James Fletcher Brennan..I made over half a million from ALB and NVDA..I love passive income.

[@gagnecaron658]

I'm convinced that all of these finance jargon, unnecessary extra steps, and weird math are used to scare away hard-working people from claiming what their companies actually owe them for all of their hard work and for this sole reason I make sure I use an advisor.

[@harleycartley3138]

My method is to buy quality firms, anticipate to hold them regardless of what happens, pay up but not too much, keep track, sell only when necessary, and be ready to course correct.

[@stanleyfujiwara1394]

When it comes to stocks and investing, most people don't know where to start. Fortunately, great investors of the past and present can provide us with guidance

[@nataliehinnes5221]

I googled the man you mentioned, and after going through his credentials, I can tell he's a pro, I'll be writing him a mail shortly

[@adalbertolima3491]

I went to a vocational High School and my “major” was finance so a lot of what you go over I was taught in high school including this it’s one of the main things I remember. The majority of your content is stuff that I didn’t know about or didn’t fully understand. I’m appreciative of the fact that I probably had a better personal finance course than other people my age but I do think your videos are just as useful if not better because if I’m not learning something I’m freshening up on some of the stuff I learned.

[@WhiteBoardFinance]

Thanks for sharing

[@Sideler74]

I learned this rule back in the early 1990's from my buddies uncle who was a chiropractor. He taught us about mutual funds & how to invest monthly etc. This Rule of 72 is what every lending institution knows, yet they don't want you to know. They don't teach it in school. My wife has her MBA in Finance & even she didn't know the Rule of 72. LOL

[@mii1563]

Its good stuff :). The only thing I would say I wanted was to let people know to adjust for inflation. So essentially take away around 3%, so really its only growing at 1% in the 4% calculation. Also, making sure they account for taxes depending upon the investment product they choose of course.

[@scottzalaha5832]

Very well done! I share this concept with my clients often but Marko presented it elegantly with humor.

[@CSLee-yu6ht]

I’ve been using the rule of 72 for 40 years for quick and dirty calculations in my head,,,, people freak at how quick you can get close to the real answer....

[@alexexplainsmoney4124]

9 years. Thanks for the info Marko! I hadn't heard of the rule of 72 being applied to other types of growth such as your KZbin channel example.

[@hexlife]

I had to watch this twice to completely grasp the concept. Then I realized it was right (or close enough)!!!

[@Vexen89]

When I first watched one of your videos, I wasn't too into it. A little monotoned. The channel kept showing in my feed so I watched a few more and That joke "It's a government stork" has me laughing and subscribing!! Plus the content is very informative and good-to-know stuff.

[@kirinnguyen2074]

Love your videos! Easy to follow and understand. Keep it up!

[@umerk2305]

Hi Marko and Fans. I "recently" found the channel and instantly got hooked to your very knowledgeable, professional, authentic and humours contents. I am an average person actively seeking to improve upon financial knowledge. I cannot thank you enough for your "OUTSTANDING" service to humanity and particularly those who are seekers of knowledge for success. The Rule 72 was very easy to understand, extremely Important & Useful and, "flawlessly" done.. I have gained a lot from it and again ...Thank you so very much. Happy Subscriber!

[@WhiteBoardFinance]

thank you very much! please share with your friends

[@waynelast1685]

Very useful. I always used the simple rule 7-11..... 7% interest in 11 years , or 11% interest in 7 years.... but your rule is more widely useful

[@rlee1231]

Thank you! This was a great help.

[@lalalovengun]

I love everything about this!! Your delivery was educational and entertaining!! Thanks for breaking it down with style! NEW SUBSCRIBER!!

[@justrusty]

I once graphed (using excel) the rule of 72 vs the actual time to double money (using a much more complex and accurate formula.) The two curves were remarkably close. They drifted apart at the extreme ends but it's an amazingly close approximation for most values we'd come across.

[@WhiteBoardFinance]

The rule of 69.3 is more accurate

[@justrusty]

@@WhiteBoardFinance Wow, I just graphed that too. (Found the old spreadsheet from a long time ago; I had actually had the 72 in a cell and changed it to 69.3.) Closer than 72 but what goes into 69.3 easily? I think 0.1, 0.693, 6.93, and 69.3. :-). Somehow the Rule of 72 seems a tad more practical.

[@WhiteBoardFinance]

exactly

[@ejcheck]

@@WhiteBoardFinance The beauty of 72 is you can do the calc in your head on the fly

[@Kris_M]

@@WhiteBoardFinance "The rule of 69.3 is more accurate" To be more accurate: "The rule of 69.3 is more accurate around 0%" while "The rule of 72 is more accurate around 7%". Both lose accuracy moving away from their optimal point. Still a cool thing to know though, makes ball park ttd calculations without a calculator with a log function a breeze. Upvote given.

[@TraderMigs]

This is phenomenal and one of the best breakdowns I've ever seen. I put my money into trading Forex (trading fiat currencies, metals, indices, etc) and I've found that the average trader can make 1% to over 10% a day trading their money, and compounding it daily is amazing, versus letting it sit in some account for years and years. Of course there's risk in it all but, I chose to educate myself properly and build the discipline to be a well leveraged trader. Question, do you trade in the Forex market?

[@charliebear381]

Thank you. I’m getting Into this investment stuff and I really needed this.

[@dougz2855]

Thanks for the info. Subscribed and shared!

[@dydxsolutions2502]

Marko, this concept is simply awesome... great video. Thanks a million

[@510jesus]

Never heard of this rule before. Easily understood though

[@lacyhall918]

Great idea to show my students. Thank you

[@gabrielacarranza542]

I dont know how I found your channel, but I LOVE IT!!!!

[@amyduhon6978]

This is very helpful! One more thing we did not learn in school. Thank you so much! 👍

[@nothrid]

You explained it so effortlessly 🔥 Great

[@DanielIles]

Love how you break this down. Like a math teach that is actually good at his job haha!

[@WhiteBoardFinance]

Lolol thanks

[@EmpressofChrist]

Agree

[@tommy2big575]

Finally a video CLEAR and STRAIGHT TO THE POINT! Thank you! you have just gained another subscriber and I left a 👍

[@ninjabastard]

You can also apply the same concept with rule of 69 and 70 depending of which number divides better.

[@TPFTKDCOM]

9

[@TPFTKDCOM]

and I definitely want to be on the waiting list for how to start a KZbin channel, please!

[@sstoor908]

69 it is

[@srbrunocell]

You are HILARIOUS and make learning fun!! Thank you for being candid!

[@WhiteBoardFinance]

😊 thank you

[@LMG6989]

9 years and thank you for the knowledge you share!

[@WhiteBoardFinance]

Thanks!

[@sarahjane9264]

My favorite part about your videos is your cheerful disposition. I'm expecting you to bust out laughing at any moment.

[@WhiteBoardFinance]

haha thanks

[@arifali6762]

Great info delivered in a great way. 🙏

[@billstark696]

Thanks, Marko! Another great video. Sharing ♡

[@WhiteBoardFinance]

Thanks for sharing bill!

[@freepilot7732]

Anecdotal point; my grandfather taught me this back when I was 10 years old in the 80's. Never forgot it. Awesome.

[@finanzieron]

but did you actually apply this early in life to grow your wealth!??

[@freepilot7732]

Absolutely. Though things happen in life but it's nice to know you have the money to use, then be able to start up again where you ended.

[@finanzieron]

@@freepilot7732 That's awesome! I found out about this way later in life! 😔💔 Even though I graduated in Economics! Not until I turned 40 did I find this amazing tool.

[@mr.shahzad4962]

VERY INTERESTING AND INFORMATIVE

[@DaMaster2180]

Your videos are getting funnier Marko. Keep at it! Didn't know this rule until now. Thanks!

[@WhiteBoardFinance]

Thanks Oscar

[@westdrif9749]

You look like you had a lot of fun making this video. Great stuff. I love it.

[@WhiteBoardFinance]

I have fun in all my videos but this one especially :)

[@davelackey5943]

I learned this almost 40 years ago in college myself and I’ve applied it the rest of my life. I have tried to instill this into my kids and grandkids as well but you can lead it to water but you can’t make them drink. They’ll probably inherit what I’ve saved, but heck I won’t need it. Thanks for the info it’s always good to see a refresher.

[@magnusandersen8898]

This is the most interesting and funny video about finance I have ever seen. Also, you make it very easy to understand Very nice

[@WhiteBoardFinance]

thank you sir

[@MaximusWilliams]

Love this!

[@peteros9555]

Eye opener. Thanks!!!

[@bryanlettow4389]

More valuable than 90% of what I was taught in HS

[@wehavecookies33]

This guy...I watched like 5 vids not understanding then this guy popped up thanks man🔥

[@scottcped]

I was just talking about this two days ago with a friend.

[@pparker768]

Excellent , thanks . Had a smile too.

[@WhiteBoardFinance]

glad i could help :)

[@mithila4981]

Thanks a lot.. I'm Bangladeshi.. it helps me a lot 😊👌

[@Aminorsnickle]

You're very funny and entertaining, I don't care how corny, when present the info very well I wasn't bored, will recommend to my less financially smart friends, but definitely, not so much to my artsy friends.

[@richii099]

Keep up the good work Marco! This is a'll a numbers game and it is what the next generation must have some basic knowledge - i have mates in their 30-40s who know nothing about this

[@jessicaweems5652]

Amazon prime stork that's a great one , this video was well put together thanks for the information.

[@LinhLe-sx6lk]

Just found your channel by accident and love it so much. Very easy to understand and you are funny too.

[@newtubehome]

(1+x*0.01)^(y/x)=2, the answer is y/x=ln(2)/ln(1+x*0.01). Some samples, x=0.01,y=69.32 x=1,y=69.66 x=3,y=70.35 x=6,y=71.37 x=8,y=72.05 x=9,y=72.39 x=10,y=72.73 x=20,y=76.04 So, when x is smaller than 3, use rule 70, when 3

[@1lacas]

Bravo Marko, tvoj kanal je jedan od boljih.

[@RiantHoff]

Actual exact formula: years_to_double = log(2)/log(1+(year_interest/100))

[@austintomkewitz7206]

Hahahahaha you said log 2 and log 1 you said log and I just got done pooping hahha hah

[@RiantHoff]

@@austintomkewitz7206 change your pants then

[@lroptions1210]

First time hearing about this rule, very interesting.

[@Answers721]

Rule of 72 will give you a correct answer of years and months down to about 5%. For example, the Rule of 72 might give you a answer to double your money in 7 years 11 months. Where if you did the calculation in Calculus, it might give you a real answer of 7 years 5 months. So the rule of 72 is much easier and gives you close to the right answer anyway.

[@WhiteBoardFinance]

The rule of 69.3 is the actual rule

[@RealLifeMoney]

Knew it...calc teacher would be proud haha

[@natesytacct]

It's good that you're teaching this. An even simpler rule of thumb to know that is based off this is that the stock market doubles your money on average every 10 years in real terms and every 7 years nominally. This is assuming typical S&P returns of 7% real and 10% nominal, and of course is not guaranteed, but that's the average result (so a 20-year old can see that every $1k they put in the stock market is worth $16k in the dollars of the same year retiring early 60s). On a tangeant, I think knowing the difference between real inflation-adjusted growth and nominal pre-inflation growth is one of the most important things people can know as well.

[@kevjackson3501]

Great explanation and cool sense of humor. :)

[@WhiteBoardFinance]

thanks Kev!

[@robinlee232]

"It's a tasteless joke but, I don't care." Way to go! 😁😂👌

[@jbthajugganaut793]

Tasteless but it the truth.

[@ikejime77]

😁😂👌😁😂👌😁😂👌😁😂👌😁😂👌

[@jaydubl]

Great video 👍

[@unknown-user07299]

Another great video, Marko!

[@WhiteBoardFinance]

Thanks Jon

[@jraz8280]

9!! Great video once again brotha man!!

[@WhiteBoardFinance]

Thanks!

[@BruceAllen]

Awesome content once more Makro 👍🏼👍🏼👍🏼

[@jamietessier1635]

Love this video great tip

[@WhiteBoardFinance]

Thanks Jamie

[@richguest]

Thanks Marco!

[@likfoon3168]

Great video! What mic are you using? It sounds awesome!

[@dimaster316]

It will take 9 years for the investment to double. BTW great channel. I show my little sister these videos. Thank you for being such a great teacher

[@cindymeleganio1759]

Thanks for this

[@DrRobertMPick]

Good explanation!

[@WhiteBoardFinance]

Thanks Bob. October 17th I believe :)

[@davelackey5943]

I study this in college this is one of the better explanations do you understand thank you

[@sammie7752]

You killed it with the stand up comedy

[@anitanit4050]

Thanks for the grt work 🙏🇺🇬🇺🇬I have learnt rule 72 💃💃👍

[@duneme]

Do something on Compound Interest (returns) as it will more complete your page!

[@AntonioLua12]

I learned it in my high school financial class. It will take 9 years to double at 8%.

[@WhiteBoardFinance]

nice

[@shawnthegreat4281]

This is great thank you

[@sammie7752]

My answer is 9. Great video Professor Marko. By the way thanks for introducing me to M1. Nice format

[@KevinWood44]

The people that would be offended by that joke would not be watching a video on finance LOLLL 😂😂

[@sumowan]

Well explained.

[@WhiteBoardFinance]

thanks

[@internetidentity6520]

Hi Marko! Love your vids, watch them religiously. Can you make a video about no cash refinancing and how equity works in this instance? It’s almost impossible to find info on them because everyone is pushing the cash out option.

[@mistico957]

I have won a new subscriber good job!

[@lucamertens2711]

Thanks for the video, this has really helped me out to better understand my economics classes! Answer is 9.

[@tonyj8947]

Fantastic!! video...I liked it until the college part..lol. The big question is What investment will pay at 9% Steady?

[@elitemal87]

ZING!! with the Amazon Prime stork joke haha

[@WhiteBoardFinance]

LOL

[@captpeady2176]

I also did this on the compound interest calculator and 8.5 years at 8.5% also exactly doubles your investment. Math is cool. 8.5x8.5=72.25

[@anitanit4050]

Nice teacher 👍

[@EmpressofChrist]

Great video

[@jrize3228]

You should totally do the dance again! Maybe not every video but in unexpected moments of some videos. It really lightened up the topic!

[@CarmelFan2024]

Amazing!

[@Chesterd2]

And here I thought you were going to tell us what investment actually gives us a 9% return every year, year after year. Let's make that your next video! Great video Marco, I am on your waiting list. Thanks!

[@Calventius]

Great! Succinct and competent!

[@katelynnmachuca358]

Lol. Great info. And also funny!!

[@PhatMeatGreZ]

9 years to double your investment - Great video!!!

[@WhiteBoardFinance]

Yes correct

[@syedaaslam8436]

Thank you Can you explain mutual funds?

[@ciscocarrizales5486]

8th WONDER OF THE WORLD !! Compound Interest can either work for you or against you. You can do the same Rule of 72 with credit cards.

[@WhiteBoardFinance]

correct!

[@sassylinda4617]

Never heard the rule of 72 but I’m kinda geeked about it. Thanks Marko

[@WhiteBoardFinance]

My pleasure thanks for watching and share if you think it's valuable

[@katieomari]

Never has a math lesson made me laugh! Great channel

[@neojohns2487]

Fellas preparing for the case study interview.. Good luck 🤞

[@giovannivergara94]

Marko, you're great at financial advise but honestly you should have your own special on Netflix or drawing cartoons lmao. Thanks for the advice.