6 Investing Rules To Live By (Part 1): The Compounding Rules

Investments Your Money

I’m a big believer in keeping investing simple. Not simplistic. Just simple enough that you can stick with it through real life, busy weeks, and the inevitable market noise.

Over the years, there are a few “rules of thumb” I’ve found genuinely useful. They’re not perfect, but they help you build intuition, and make better long-term decisions.

This is Part 1 of a two-part series. We’re starting with the compounding rules, because once you understand how time works in investing, everything else becomes easier to make sense of.

The 3 Rules (At A Glance)

1) The Rule of 72 (How Long To Double)

72 ÷ your return (%) = years to double

This is one of the fastest ways to understand compounding.

Example: If your investment grows at 8% per year, then 72 ÷ 8 = 9. So your money roughly doubles every 9 years.

Why it matters: The earlier you start investing, the more doubling cycles you get. That’s where long-term wealth is actually built.

2) The Rule of 114 (How Long To Triple)

114 ÷ your return (%) = years to triple

Same idea. Bigger milestone.

Example: If your investment grows at 6% per year, then 114 ÷ 6 = 19. Your money roughly triples in around 19 years.

Why it matters: Tripling tends to come from discipline, not brilliance. The investors who do well are usually the ones who simply stay invested.

3) The Rule of 144 (How Long To Quadruple)

144 ÷ your return (%) = years to quadruple

Example: If your investment grows at 9% per year, then 144 ÷ 9 = 16. Your money roughly quadruples in 16 years.

Why it matters: This rule reminds people that steady investing can produce surprisingly strong outcomes over time.

The Big Idea

One of the most common investing mistakes I see is people being too focused on the short term. They get caught up in what markets did this month, or what interest rates did this quarter, or what headline is doing the rounds right now.

That’s understandable. It’s human.

But investing success is usually built on a different timeframe. Most people overestimate what can happen in one year. And they underestimate what can happen in ten or twenty.

That’s really what these three rules are pointing to. When it comes to investing, time matters more than timing.

Part 2 covers inflation, risk balance, and the emergency fund rule, which I believe are just as important.

Want Help Applying This To Your Own Situation?

Rules are helpful, but the real value is in applying them to your goals, your timeline, and your comfort with risk.

If you’d like help building a plan you can actually stick to, get in touch with Mark and the Hallam Jones team.

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