The Rule Of 72 Or How The Banks Take All Your Money!
Posted by admin under: Main Nov 16If you don’t know the rules of the game it’s hard to win, so let’s start with the most important rule: The Rule of 72.
This is how banks make their incredible profits, all funded by your lack of knowledge. Learn this rule now and start making it work FOR you rather than against you.
The rule of 72 simply states that if you divide your interest rate into 72, the answer is the number of years it will take for the initial amount to double.
Demonstration:
You go into the bank to deposit ?10,000 at a savings rate of 3%.
72/3 =24, so into 24 years, you will have ?20,000, in 48 years you will have ?40,000.
Next, you manage to get a better interest rate and you deposit ?10,000 into the bank at 6% interest. 72/6 = 12. so you will have ?20,000 in 12 years time, ?40,000 in 24 years time, ?80,000 in 36 years time and ?160,000 in 48 years time.
Gosh, the difference 3% makes. But wait, let’s look at 12%, just for fun…say you asked for a loan and got a rate at 12% (Remember most credit cards are between 20-35% and I recently was told of one at 69%).
72/12 = 6, so every 6 year the debt doubles. after 6 years. you would owe, ?20,000, after 12 years, your debt has doubled to ?40,000. In 18 years, you now owe ?80,000, and in 24 years, it’s now at ?160,000. In 30 years your debt would be ?320,000 and in 36 years, it’s reached ?640,000. When you get to 42 years, you owe a staggering ?1,280,000 and finally in 48 years time you woe your bank ?2,560,000!!!
So, when you save you money in the bank to keep it safe, they ‘generously’ give you ?40,000 at the end of 48 years, yet they’ve made over ?2.5 million from you and others like you in loans payments.
It’s no wonder that banking controls over 60% of the world’s money!
Make poverty history, learn to use compound interest, the Rule of 72 in your favour.
Get ahead start by visiting http://www.wealthfreedomfighters.com and signing up for our newsletters and emails that will educate you in financial skills and give you wealth and prosperity tips.
Cynthia Curry is an ordinary person who came across extraordinary information and now wants to put it into the hands of as many people as possible to help them get out of debt and exit the corrupt banking system.
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Source: The Rule Of 72 Or How The Banks Take All Your Money!
Friday, November 16th, 2007 at 9:40 am and is filed under Main. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.