Australian Finance Podcast Easy money maths you’ll actually use
Jul 30, 2025
Discover simple money math concepts that can help you take charge of your finances without the intimidation of complicated calculations. Learn the Rule of 72 to estimate how long it takes to double your money. Understand the FIRE number to gauge the savings needed for financial independence. Explore the 4% rule for safe annual withdrawals in retirement. These practical tips are designed for anyone looking to improve their financial literacy and build a secure future.
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Rule of 72 Explained
- Use the Rule of 72 to estimate how long it will take to double your money with a given interest rate.
- It's a simple calculation: 72 divided by your interest rate equals the doubling time in years.
How To Calculate FIRE Number
- Calculate your FIRE number by multiplying your desired annual spending by 25.
- It gives an estimate of the invested assets needed to live off income without working.
Safe Withdrawal Rate in Retirement
- Apply the 4% rule to know how much annual withdrawal is safe from your retirement portfolio.
- Multiply your total investment by 4% to estimate sustainable yearly income without depleting capital.