Rule of 72

Radically Change Your View of Money : 

Mr. O’C Radically Change Your View of Money The Rule of 72: Population Growth Dynamics

Radically Change Your View of Money : 

Radically Change Your View of Money Fundamentals of Investing: What is the American dream? Would you rather OWN things or finance them? Wants vs. Needs Mr. O’C’s Quote: “Wealth has nothing to do with how much you make… but everything to do with how much you save and invest wisely.”

Compounding Effect : 

Compounding Effect QUESTION OF THE DAY??? Would You Rather Have A Million Dollars Or A Penny Doubled For 30 Days?

Slide 4: 

A Penny Doubled For 30 Days = 10,737,418.24 $ $ $

Slide 5: 

30 Days 10,737,418.24

The Rule of 72 and the Compounding Effect : 

The Rule of 72 and the Compounding Effect The rule of 72 tells you approximately how long it takes to double your money at a given interest rate. It also tells you how long it takes for inflation to eat away half of your money at a given inflation rate. To find out how long it will take to double, divide 72 by the number of percentage points in the rate of return. For example at 9% interest it will take about 8 years to double your money. 72 divided by 9 equals 8.

The Rule of 72 and the Compounding Effect : 

The Rule of 72 and the Compounding Effect Now… let’s see how this really works. If I gave you $1000 today and it earned 10% per year, how long would it take for your money to double?

The Rule of 72 and the Compounding Effect : 

The Rule of 72 and the Compounding Effect

Was there ever a $100,000 bill? : 

Was there ever a $100,000 bill? Woodrow Wilson

Now… Let’s Practice: : 

Now… Let’s Practice: If I gave you $5000 today and promised you it would return 18% per year, how long would it take to double? How long would it take for you to become a millionaire? James Maddison

Slide 11: 

If I gave you $5000 today and promised you it would return 4% per year, how long would it take to double? How long would it take for you to become a millionaire?

The Rule of 72 and the Compounding Effect : 

The Rule of 72 and the Compounding Effect Compound Interest – Reinvest the Interest Earned Compound interest doubles your money according to the rule of 72. Your financial habits are extremely important

The Rule of 72 and the Compounding Effect : 

The Rule of 72 and the Compounding Effect Simple Interest – Spend the Interest Earned Why didn’t the money double according to the rule of 72? Simple interest takes longer to double your money. Your financial habits are extremely important.

The Rule of 72 and the Compounding Effect : 

The Rule of 72 and the Compounding Effect Inflation – Let the Money Sit Inflation continuously eats away your capital whether you invest or not. If your investments do not yield a higher return than the current inflation rate, you continuously lose money. You automatically lose money to inflation if you don’t invest at all.

DEBT : 

DEBT IS IT A FOUR LETTER WORD?

An Investment In a Depreciating Asset(Is Really No Investment at All) : 

Price $1,000 An Investment In a Depreciating Asset(Is Really No Investment at All)

What’s So Good About Real Estate? : 

What’s So Good About Real Estate? Or a better question is: Why is it that 90% of financially independent people have gotten there through real estate? It’s all about leverage and compounding.

Immediate Steps Toward Financial Freedom : 

Immediate Steps Toward Financial Freedom Step 1 …You Can Invest Before Taxes Does your employer have a 401K plan? Do they match funds? Do you have an IRA? (It’s before tax. That’s BIG.)