The Rule of 72 is one of the most important Math rules we can learn, yet few of my friends have heard of it. It is the foundation for all investments and borrowing as well as church growth. It shows that Jesus was a Math Genius! The interest rate we gain from an investment when divided in 72 tells us how may years it will take at that rate to double our savings. See the table below:
2% Rate of Return = 36 years to double my money
4% Rate of Return = 18 years
8% Rate of Return = 9 Years
16% Rate of Return = 4.5 Years
20% Rate of Return = 3.4 Years
This is the good news and it is why the rich get richer. But why do the poor get poorer? Because the Rule of 72 punishes all who borrow and pay interest. Using the table above to show how many years our debt will double! This is why poor people rarely get ahead. Those who save get rich if they get a good interest. Those who borrow pay interest and lose everything because the prices of whatever they buy keeps rising.
I wish poor people could break out of poverty.rty by making a bit more per hour, but unfortunately it will not work if they do not save and get a good interest rate. If they make $15.00 or $20.00 an hour but spend more than that, poverty will be the result.
It is also why many churches fail. They borrow "easy money" at high rates and can never pay it off before it doubles. Credit cards often charge over 20% so the debt owed grows faster than my payments grow. Churches Aldo fail if they simply try to add numbers but not multiply by equip get people to double the number of ministers.
Want to change your finances? Save and multiply.
Want to change the world? Save and equip them to multiply themselves.,
Why did Jesus tell us to find good soil?
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