Tuesday's Tips & Tricks

I don't really "do" the stock market or investment thing, yet. I'd like to, I just don't really know where to start, plus I'm focusing most of my financial energy paying off student loans, like most people in my age group. Baby steps, right? 

Right! Well, thankfully, The Everygirl is here to help. For instance, I just learned about the rule of 72. "Investing in the stock market allows you to potentially grow your money at a higher rate than a savings account. And if you can grow your money faster than a savings account can, you will have a lot more money for your various financial goals over time. But how? The answer is simple. Compounding interest will be working in your favor. The best way to explain how compounding interest works is to understand the Rule of 72. The Rule of 72 is a great financial rule of thumb that basically tells us how many years it will take to double our money given a specific interest rate. For example, if you have $10,000 and want to know how long it will take to double your money at a 2% interest rate, divide 2 into 72 and you get 36 years. If you take the same $10,000 and instead use an 8% interest rate, it will take 9 years to double your money – 72/8=9." Thanks Everygirl! (Like I said - baby steps.) Lean more here.