Here are three questions for you.
- If you put $5,000 into a savings account that offers 4% interest annually, how long before your money doubles?
- What happens if that rate is increased to 6%?
- If you own $10,000 on your credit card, and they charge you 24% interest, how long before your debt becomes $20,000?
If it takes you more than 45-seconds to answer ALL three questions, that’s too long.
It also means, you are unaware of one of the main Financial Rules.
And that’s okay. I did not know this rule till I turned 27.
But now that I know it, I can answer all three questions in a matter of seconds, without a calculator. By the way, the answers are … 18 years, 12 years, and 3 years.
Finances can seem complicated. But if we take the time to understand some simple ideas, the subject of money becomes much easier to understand.
Want to know the Financial Rule that helped me answer these questions?
Enter your email below, and the Rule will be delivered to your Inbox. In fact, every week thereafter I’ll introduce you to a new financial concept via email.
But do this, only if you want to become more financially intelligent.