Rule of 78s - Compounding Mula
So before I start selling crack/cocaine/heroin on the streets of the internet (not saying that everyone does) I wanted to share a way of saving money throughout the year. Obviously there's many ways to save money but thought this would invite other ways of investing your money throughout the year and for the future. The thing for me sometimes is that sometimes I have issues saving for a vacation or trip I want to do with friends and often forget to see the big picture. With this thread I hope some of you guys get something out of it and I don't oppose any other ideas/ways of saving money so that we can live that baller life, if you know what I mean. For the purpose of this thread I'll introduce one way of saving money and that is the "rule of 78s"
The Rule of 78s is something that you probably heard during grade school and I am sorry for bringing back any haunting memories but the rule of 78s is also known as sum-of-the-digits method which is an interest calculation. It's essentially the sum of the numbers from 1 to n is given by the equation n * (n+1) / 2. So for example: 24 * (24+1) / 2 = 300. The other way of doing this is by adding 1 + 2 + 3 + 4... + 24 = 300.
So what's the point? Well ITT why don't we apply that to your money. Yep that's right. Why don't we apply that towards the way we save money and watch our money grow throughout the year?
If you do the math for a 52-week year it is: 52 * (52+1)/2 = $1,378. You could essentially make $1,378 for yourself easy. And if we want we could get creative and double our pursuit or triple. But you see what I'm saying.
Long story short the opportunity can open doors for the future. So it begs the question: What would you do with your mula? What would you do with $1,378? Share ya thoughts below.
