'Rule of 72': Your money could double in 6 years but only if you know this 3-second rule

One simple rule can predict your financial future in ten seconds, says analyst Sujay U. It is not complex, and it does not require a finance degree. It is the Rule of 72, and understanding it could transform the way Indians save and invest.

“The Rule of 72 is the world’s simplest wealth formula,” Sujay U explained in a LinkedIn post that is gaining traction. “It tells you exactly how long it takes your money to double.”

The formula is easy to use. Divide 72 by your annual rate of return to find out how many years it will take for your money to double. No spreadsheets, calculators, or complicated planning tools needed.

Sujay laid out the math with real-world returns:

• At 2 percent return, money takes 36 years to double
• At 4 percent, it takes 18 years
• At 8 percent, just 9 years
• At 12 percent, only 6 years

“A simple change in your return can save you decades of waiting,” he said. Yet, many Indians continue to park their savings in traditional bank accounts or fixed deposits, earning minimal interest.

“At 3 percent your money doubles in 24 years. At 12 percent it doubles in 6 years,” Sujay pointed out. “Same money, different growth rate and the outcome is different.”

He emphasizes that India’s Nifty 50 index has historically delivered around 12 percent annually, which significantly outpaces returns from savings accounts or fixed deposits.

His message is direct. “You don’t get wealthy by working harder. You get rich by letting your money work faster.”

Sujay urges individuals to rethink where they keep their money. The Rule of 72 reveals how crucial investment returns are over time, especially in an economy where inflation slowly erodes purchasing power.

By relying on passive low-yield options, savers risk falling behind financially even while working diligently. The Rule of 72 encourages smarter decision-making that prioritizes long-term growth.