Personal Investing

What is Rule of 72?

rule 72

Rule 72 is a simple methamatical formula but an effective way to calculate the estimate time for you to double your money.

The rule was discovered by Albert Einstein based on compounded interest principles. Referring to compound interest, Albert Einstein is quoted as saying: “It is the greatest mathematical discovery of all time.”

The formula for Rule 72 is

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7 Levels of Investors by Robert Kiyosaki

investor

In his book “Cashflow Quadrant: Rich Dad’s Guide to Financial Freedom”, Robert Kiyosaki identified seven (7) levels of investors. The ideas are coming from John Burly but he modified the definitions based on his experiences. The 7 levels of investors according to Kiyosaki are,

Level 0: Those with Nothing to Invest
Level 1: Borrowers
Level 2: Savers
Level 3: Smart” Investors
Level 4: Long-term Investors
Level 5: Sophisticated Investors
Level 6: Capitalists

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