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Sunil Sawhney @Sunil_Sawhney
, 6 tweets, 2 min read Read on Twitter
#TooGoodNotToShare ...
#Rule72
What is Rule 72?
In personal finance, if you divide the number 72 by the rate of interest, you get to know the number of years it will take for you to double the money..
Eg: if the rate of interest is 9%, simply divide the number 72 by 9 and the answer is 8. Thus it will take 8 years to double your money if you invest at 9% p.a. rate of interest.
#INTEREST
We can use this rule in reverse to know the rate of interest needed to double your money to achieve your set goal.
Eg: If you have 250k today and you need 500k in 5 years. Just divide the number 72 by 5, the answer is 14.41. Thus you need a type of investment avenue, where you earn at least 14.41% p.a. as rate of interest/returns to double your investment amount in 5 years.
#INFLATION
This #Rule72 helps you to understand about inflation also. It helps you to calculate the amount of time it will take for inflation to make the real value of money half. Let's say present inflation is 5.5. When you divide 72 by 5.5% the answer is 13.09 years.
WhT it means is that if you have 100k in your kitty today, it would take around 13.09 years for the value of the money to be halved.

Hope it helps you in your day to day investments and other finance related activities.

Please Retweet if you find this helpful..

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#TooGoodNotToShare #Rule72 #INTEREST #INFLATION

More from @Sunil_Sawhney see all

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#SundaySpecial
#TooGoodNotToShare

Today on the #FirstSundayOfTheYear At about 4 am(I would Say Pre-Dawn) I heard someone speaking to me “Wake up,You cannot be Sleeping & Making This Wonderful Day Short" by Sleeping till late
I Woke up immediately looking for Where the Voice came from? I found that This Voice was from Within me. By now my Slumber had Vanished and I was fully awake . I left the bed, made a cup of tea and sat out in the balcony, enjoying the cool breeze and sipping my morning Tea
Various Thoughts started to Swim within me and then the below happened.

My Heart asked me a question. "Where is Success."

My Mind immediately Replied to My Heart, you, My Friend always Run to the World of Fantasy.
Read 7 tweets
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I read a beautiful #ShortStory and found it #TooGoodNotToShare

#WhoPackedYourParachute

Air Commodore Vishal was a Jet Pilot. In a combat mission his fighter plane was destroyed by a missile. He however ejected himself and parachuted safely.
He won acclaims and appreciations from many.

After five years one day he was sitting with his wife in a restaurant. A man from another table came to him & said "You're Captain Vishal! You flew jet fighters. You were shot down!"

“How in the world did you know that?” asked Vishal
“I packed your parachute," the man smiled and replied.

Vishal gasped in surprise and gratitude and thought if parachute hadn't worked, I wouldn’t be here today. Vishal couldn't sleep that night, thinking about that man.
Read 8 tweets
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#Finally we have less than one hundred hours to the end of #2018
And before the year ends, I have a few things to say

To My #Creator I say #ThankYou

To my #TrueFriends;I #appreciate you all

To those who showed me love;I am #grateful

To those who hurt me;I #ForgetAndForgive
To Those whom I May have inadvertently hurt( I can never do so by purpose); I'm so sorry, please #Forgive me

To those who challenged me; lets do it again

To those I showed #love to; I still love you and #IAlwaysWill
To those Who feel I helped them; #GodBlessYou and a request to remember to help someone in need
To those who helped me; I am so #Grateful & will reciprocate in due course

#ThankyouForMaking2018GoodForMe
Read 3 tweets

Related threads

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Thread: Nobel Jean #Tirole gave a public lecture at UCL tonight: 10 years after the #financialcrisis where do we stand. Key points:
1)#Finance is good if used and regulated properly. We seem to be making the same mistakes of 10 years ago. #Subprimes are up again in US. 1/
2) Its crazy for banks to hold a lot of their nation’s sovereign bonds. It creates a #doomloop. a bank fails>government needs more debt to bail it>brings down sovereign bond prices and more banks under stress> more public money needed. And yes he used Italy as an example.2/
3) #cryptocurrencies are a bubble. Fiat money and central banks have worked quite well in developed economies in the last 30 years. And with cryptocurrencies seignorage goes into private hands and not to the goverment.
3/
Read 5 tweets
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#Muslims r one of the most financially excluded citizens in #Ethiopia & their primarily reason is #Riba. But I wonder how & where the data for such reports are collected? "Financial inclusion in Ethiopia: 10 takeaways from the latest Findex" tinyurl.com/ydhmd738 via @WorldBank
Citizens who identify themselves as #Muslims account for 34% of the #Ethiopia'n population (CSA, 2007). This large segment of the society was demanding Shari'ah Compliant #finance for long time. Banks first responded by introducing 0% interest A/C #financialinclusion @WorldBank
Banks attracted millions of customers and mobilized billions of Birr in deposits. Sadly, customers were unaware that these deposits are not #ShariahCompliant and they were subjected to successive devaluations which has impacted them a lot. #financialinclusion #Ethiopia @WorldBank
Read 11 tweets
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Time for the thread I promised.

I answered tons of questions in my DM because many of them were highly specific. Unfortunately, I couldn’t spend more time talking with each individual.
Went through all the requests and the most common issue I noticed was that people are struggling with expenses and debt.

Like I said earlier there is too much emphasis on big ticket expenses and investments in the personal finance space.
And there is this notion that you can invest (or worse still, trade) your way into covering your expenses.

We don’t talk about the defensive aspect of personal finances enough and it is clearly showing. It is not glamorous enough.
Read 26 tweets
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If I see one more "heterodox" view on the "orthodox" view on "loanable funds" I'm gonna........well, let me do this short thread, instead of heading back to the lake with my canoe: /1
First, if any view is currently "orthodox" in Macro, it is the New Keynesian/Neo-Wicksellian view.
That is the view held by (most?) central bankers & used to guide policy, and taught in (most?) upper-year & grad macro courses. /2
According to that "orthodox" view:
In the Short Run, the (short-term, safe, nominal) rate of interest is set by the central bank at whatever it wants to set it at (subject to ZLB constraints).
This is a pure Liquidity Preference theory of the rate of interest. /3
Read 9 tweets
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This is probably against my best interest, but it's Friday afternoon. So, inspired by @ericlonners and @Undercoverhist -- and with no responsibility for errors...
one like = one theory of the rate of interest.
1. Aristotle: "And this term interest, which means the birth of money from money, is applied to the breeding of money because the offspring resembles the parent. Wherefore of all modes of getting wealth this is the most unnatural."
Read 69 tweets
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Money is created by the Central Bank, intermediating between government and its creditors.
The Central Bank doesn't earn interest except when pawning assets for Banksters. Even then, its rate isn't usurious.
But, yes. I personally do agree that the CB should not always ride to the rescue of banks that would otherwise be insolvent.
Read 14 tweets

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