Rule of 72

What is the greatest mathematical discovery? For me, i think it is the "Rule of 72" discovered by Albert Einstein.

If you divide 72 with the compound interest, you will know approximatively how long you will able to obtain 100% return. Example with the compound interest of 9%, you will need ~8 years (72/8) to get a 100% return.

This is the secret discovered by Albert Einstein long time ago, and Warren Buffett is the one that practice it for >69 years, and making him the third richest man in the world!

So by applying Rule of 72 properly, i believe there's no doubt that anyone will be able to build your wealth and achieve your financial goal easily!

The Snowball - easiest step to be very rich!

There are so many books that i'd read before, that teach you how to be rich. Well, this is the book that i think provided the simplest yet powerful solution! "The Snowball: Warren Buffett and the Business of Life" is the one that make me realize to become a rich guy, you do not need to be an extra ordinary guy, or come out with an extra ordinary product or idea.

What you need to know is the power of compound interest! Compound interest referring to the interest will be added back to the principal. This is the secret how Warren Buffett become the 3rd richest man is the world, by reinvest all his earning back into the capital with average return of >20% annually.

An easy question, roughly guess how much your RM20k be after 25 years with 20% compound interest? I posted this question to many of my friends. And only 10% of them might get near to the rough amount!

 
Well, i hope you are among the 10%, the answer is ~RM1.9 million. I was shock when i get this answer actually, as I'm among the 90%. :) Well, my friend, this is the beauty of compound interest! Any by applying it in the right way, you will become very rich!