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#Finance
The Rule of 72 is an interesting shorthand. Divide 72 by the interest rate and you get how many years your investment takes to double. 4%: 72/4=18 so at 4% it takes 18 years to double. At 8% it takes 9 years to double. Contrariwise, non-CPI inflation* is about 5%-6%, 72/6=12 so you have to double your income over 12 years to keep the same purchasing power.
*The gov publishes the CPI rate of 3% as it's easier to track, but it doesn't include fuel and medical costs which rise faster.
