Part 4/9:
Once stewardship is established, the next principle is focused on growth. Financial growth is not a mere function of age; rather, it is about achieving specific financial goals. The key to wealth accumulation lies in the ability to turn $1 into $2. Compound growth plays a critical role here.
The Rule of 72 is an invaluable tool for understanding how quickly your investments can grow. This rule states that by dividing 72 by your annual rate of return, you can estimate how many years it will take for your investment to double. For instance, with an investment that yields a 4% return, it would take 18 years to double your money.