When you earn interest on your savings, that interest is added to your principal and also __earns interest on itself__. So, your balance doesn’t merely grow, it grows at an ever-increasing rate as it compounds monthly.

- If you saved
__$250__a month for 35 years at a__4%__interest rate, your investment would grow to more than__$229,000__. - With an
__8%__annual rate of return on the same $250 for the same 35 years, you now would have earned MORE THAN DOUBLE at__$577,000__. - And if you can earn
__12%__per year on your $250 per month investment, it would grow to more than__$1.2 MILLION__in 35 years.

Monthly investments not your style? Say you have a lump sum to invest. Let’s see how long it would take to double the initial investment amount.

__To apply The Rule of 72, __simply **divide the number 72 by the interest rate.** The result is the approximate number of years it will take to double your money. For example, at a **4%** interest rate, your money will double every **18 years**__ __because **72 ÷ 4 = 18**. So, if you invest __$10,000__ at __age 29__ at a __4% interest rate__, you’ll be 47 years old (29 + 18) when your money doubles to $20,000, and at 65 (47 + 18) you’ll have $40,000.

Not, too exciting? Well, hold on a minute.

Now let’s say you’re earning **8%** instead of 4%? The same $10,000 investment would reach **$160,000** **at age 65**, since it would double every 9 years. You have now doubled your interest rate but quadrupled your investment!

Now, say WE Alliance helped you achieve a 12% interest rate. That same $10,000 you started with back when you were 29 would double every **6 years** to provide a whopping **$640,000 at age 65**.