How the Rule of 72 Can Transform Your Thinking
In this brief excerpt from Jason Martin's YouTube video, the speaker (Jimmy) recounts a pivotal conversation with his mentor, Joe Entress. The mentor challenges Jimmy to know the interest rate he earns on his money, prompting Jimmy to learn about the Rule of 72—a quick way to estimate how long an investment takes to double. Realizing he was earning a low rate at his local credit union, Jimmy decides to move his savings into mutual funds. He emphasizes that he is not soliciting anyone to buy a fund, merely sharing his personal experiment: allocating a $100 monthly contribution, with $36.48 and $63.52 directed toward the investment (both portions ultimately invested). The anecdote serves to illustrate how understanding the Rule of 72 can change one's approach to saving and investing.
