The Financial Rule of 72

The Rule of 72 is a financial concept that simplifies the calculation of how long it takes for an investment to double in value. By dividing 72 by the annual interest rate, you get an approximate number of years for the investment to double.

From a Christian perspective, the Rule of 72 aligns with several principles of responsible stewardship and financial management:

  1. Stewardship: As Christians we are to be responsible stewards of all the resources and gifts given us by God. The Rule of 72 can be viewed as a practical tool for managing financial resources wisely, aligning with the Christian principle of stewardship.
  2. Parable of the Talents: The Rule of 72 mirrors the biblical Parable of the Talents (Matthew 25:14-30), where servants are entrusted with talents (currency) and expected to multiply them. The concept of doubling in the Rule of 72 resonates with the parable’s message of wise investment and growth.
  3. Planning for the Future: Proverbs 21:5 states that diligent planning leads to abundance. The Rule of 72 encourages individuals to plan and make informed financial decisions, aligning with the biblical emphasis on thoughtful preparation for the future.

Remember, the Rule of 72 is just a tool, its application can be consistent with Christian principles of stewardship, responsibility, and foresight. Use Godly wisdom in its use.

Back to top