Finances can be complicated, but they don't have to be.

I break down financial topics that may seem complex and overwhelming so you can start taking action on your financial goals.

I'm Ari Talby, and it all starts here on Personal Finance Redefined.

Welcome back to another episode of Personal Finance Redefined.

Today's topic is about the rule of 72 and the power of starting early.

This is one of my favorite topics to talk about and one of the things that got me most

interested in finance was when I found out about

this rule. So I hope it's as fascinating to you all as it was to me. When it comes to investing,

starting early can be a huge advantage, as you know. If you're listening right now and you're in

your 20s, you can thank yourself and start taking action. If you're in your 30s, it's not too late, and you can still achieve incredible growth,

but perhaps you may want to take on additional risk to achieve that growth.

Nevertheless, investing is going to help you achieve financial freedom, regardless of where you begin.

Starting early can best be understood by this rule of 72.

When I learned this, I thought it was worth the

entire education system of high school. And other than that, I didn't really know what to take away.

And this rule of 72 is the reason I decided to pursue finance in college. So it blew my mind.

The rule of 72 is a formula used to estimate the number of years

required to double your money at any given rate of return. So what that really means is what do we

need to get percentage wise as a rate of return to double our money? Once again, the rule of 72, it's used to estimate the number

of years, so how long does it take, to double my money based off what return I get, whether that's

6%, 8%, 10%, and I think this is all best explained through an example, and I'm going to give you a few.

So you may have heard

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