How to double your money (not today)?
Hmmm…. I know what you’re thinking… Doubling your money TODAY? No, its not possible.
- You just won the lotto!
- You get into a business that promises you to double your money in 24 hours. Oh! By the way, if it’s too good to be true, you know na…
- You rob a bank. It will surely double your money but please, please, please… maawa ka… prison cells have no space for new prisoners…
How to double your money (the right way) is not really a question.
Because it is possible. You simply INVEST your money.
Your money is like a seed. Imagine a mongo seed.
How do you double the mongo seed?
You plant it in a good soil.
After some time, you will harvest more mongo seeds. I know this by experience. My lola planted a pinch of mongo seeds at the back of our house, among her other crops. Three months later and beyond, we were able to enjoy vegetable soup.
My 1-year old daughter also loves sabaw from mongo!
Anyway… you get the picture right?
So, to invest, is to plant the seeds.
After some time, you get more of the seeds. You enjoy it for a long period of time.
The question is WHEN?
When are you going to double your seeds?
As for the mongo, the seeds were more than doubled after 3 months. Two factors: (1) good soil (2) caretaker.
Now let’s go back to MONEY.
When will your money be doubled?
The answer is…
Rule of 72!
Yeah, it’s not a typo. You can predict the timeline when your money will be doubled using the rule of 72.
I did not invent this rule. Neither is Digong!
My greatest grandfather, Albert Einstein, formulated this rule. And it’s one of the most useful tools in the world.
The rule of 72 is actually very simple.
It’s as simple as planting mongo seeds.
Let’s say, the interest rate of planting mongo is 288%.
You simply divide 72 by 288.
What is the answer?
Did you get 0.25?
It means that you will double your seeds in 0.25 years. Or 3 months!
WoW! Planting mongo is a lucrative business… Yes, but that’s not our point here…
If you invest your money into any business, you need to know 2 things:
- How much is the interest rate? Knowing this, you will have an idea when you’re money will be doubled. If it takes 200 years for your money to get doubled, then, probably, you should think twice before you get into it. Find another business. Hello? Are you still alive after 200 years?
- Is it a good business? Meaning it’s not illegal, not a scam, or both. But if that’s what you want, sorry , we’re not on the same page.
What about time deposit?
The highest interest rate I know of a time deposit is 1.2%. Some are even lower.
Now, let’s use the formula, rule of 72, to get the idea when your money will be doubled, if you put your money in the time deposit account.
72 divided by 1.2 = 60
It means that your money will be doubled in 60 years.
Yes. That long!
That’s why you can’t blame those who want quick money, those who want to get rich quickly. They get into scams that promise them 200% interest after 1 day.
Don’t worry. It’s not the end of the world.
There are means to double your money in a shorter span of time…
Wanna double your money in 9 years? Invest in a business with 8% interest rate.
6 years? Invest in a business with 12% interest rate.
You just need to know 2 things just like planting mongo seeds. What are those again?
One is a good soil. Another is a reliable caretaker.