In Episode 14 of the podcast, I will share with you a straightforward formula to estimate the time required to double your money in a given investment.
This episode emphasizes the importance of budgeting before investing, discussing various methods like the 50/30/20 rule and zero-based budgeting.
I share my personal experiences and underscore the necessity of a financial safety net.
My goal is to equip you with practical tools for informed financial decisions, highlighting the power of compounding and the significance of starting investments early.
(00:02:46) Discussion on necessary financial safety nets before investing.
(00:03:46) Introduction to various budgeting methods, including the 50-30-20 rule.
(00:04:44) Description of envelope budgeting as a traditional cash management method.
(00:04:44) Explanation of zero-based budgeting, assigning every dollar a purpose.
(00:04:44) Overview of prioritizing savings or investments before other expenses.
(00:04:44) Flexible budgeting method focusing on income and essential payments.
(00:06:41) Explanation of how to use the Rule of 72 to estimate investment doubling time.
(00:08:39) Example of using the Rule of 72 with different investment rates.
(00:09:46) Illustration of how investments can grow over time with compounding.
(00:11:48) Key factors to consider: time horizon, investment type, and risk tolerance.
Links and Resources:
Download your FREE financial planning toolkit with an online budgeting tool
My favourite online compounding calculator
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