The Rule of 72 & the Entrepreneur

The Rule of 72
A useful mathematical tool, many entrepreneurs use the principles of the Rule of 72 on Compound Interests on estimating the potential income of a business endeavor. We may ask how does the Rule of 72 influence the entrepreneur's investment decision?

The Rule of 72 & the Banks
The Rule estimates the number of compound interest cycles an entrepreneur's money would double. If you get 1% per annum interest income on your savings deposit at the bank. Assuming 20% of that is withheld for tax, you are left with a net of 0.8% per annum. If you have 10,000 pesos, it will take 90 interest cycles (72/0.8 = 90) before the money would double into 20,000. pesos. In this case, it would take 90 years.

The Rule of 72 & the Business of Lending & Financing
Some LOAN SHARKS lend their money on people who are in desperate need of funds at an exorbitant interest rate of 20% per month. These loan sharks would estimate that 72 divided by 20 (72/20) would mean 3.6 interest cycles which means that in 3.6 months their P10,000 would grow and become P20,000.

Legal lending companies charges 3% to 5% interest on their micro financing activities, to help and boost small and micro enterprises into full economic activities, of course they have these other non-finance charges above this 3 to 5% interest which takes care of their operating costs. With a minimum 3% net income per month on their micro financing activities, they expect to grow and double their money in 24 months (72/3 = 24) or 2 years.

Some people with surplus cash use their funds, instead of keeping them in the banks, by accepting discounted and re-discounted post-dated checks at an interest rate of 3% per month. Discounting and re-discounting of checks happens when some people in the course of their business activities accepts post dated checks for payments. When their cash funds run short, they are forced to endorse their customers' post dated checks to other businessmen at a discount rate of 3% per month. This is usually accompanied by a personal check as an insurance in case the endorsed check turns out to be unfunded. The 3% per month on discounted checks doubles the surplus money in 2 years with no additional manpower, no sweat, and no hassles.

The Rule of 72 as Applied in Trading
Many creative traders use the Rule of 72 on a daily basis. A Filipino merchant may satisfy himself with a 5 cents net income (5%) for every peso value of the goods he is selling. If he can move P 10,000 or more worth of inventories per day, it will take him only 14.4 market days (72/5 = 14.4) to turn his investment into P 20,000 worth of inventories or cold cash. This costs some sweat and some hassles, but gives better returns and at a very short time.

In these very competitive days, where not just quality but pricing does matter, lowering the product price by reducing the mark-up on cost may mean increasing the volume and rate of inventory turnover, and shortening the number of days a person's investment doubles. For the entrepreneur, the Rule of 72 is a very easy and useful tool.

Who is Worthy of Respect?

(a Jewish proverb)

He who wants to live his life
should equip himself with a
heart
which can stand suffering.

Man must realize that life is
sometimes good, and
sometimes bad.

Only he is
worthy of respect
who is grateful for the good
and knows how to bear evil.

Why Was Man Created on the Last Day?

(a saying from the Talmud)

Why was man

created on
the last day?
So that he can be told,
when pride
takes hold of him:
the Almighty created
the gnat before thee.

What is Man's Great Guilt?

Man's Great Guilt
(words by Martin Buber)

Man's great guilt does not lie
in the sins that he commits,
for temptation is great and his
strength limited.

Man's great guilt lies in the fact
that he can turn away from evil
at any moment, and
yet he does not.

What is the Sense of Our Life?

What is the sense of our life?
What is the sense of the life of any living being at all?

To know an answer to this question means to be religious.
You ask: What is the sense of putting this question at all?

I answer: He who feels that his own life or that of
his fellow-beings is senseless is not only unhappy,
but hardly capable of living.

- Albert Einstein

A Saying from the Zohar

The Almighty conceals Himself from the mind of man, but reveals Himself to his heart.

Why Condemn No Man?

Condemn No Man
(a saying from the Talmud)

Condemn no man

and consider nothing
impossible,

for there is no man who
does not have a future,

and there is nothing that
does not have its hour.

What Name Should I Tell Them?

In Moses (peace be upon him) first encounter with the Almighty, he was instructed to deliver the children of Israel from their bondage in Egypt. Moses felt the trouble of introducing his newly known Mighty One to the elders back there. The elders have already known a lot of idol names in Egypt. Who could He be among them? So he asked the One before him, "What name should I tell them?" Apparently, His name was not among the names of the idols of Egypt.

Moses was told to say to the Israelites: "YaHWeH, the Mighty One of your fathers - the Mighty One of Abraham, the Mighty of Isaac, and the Mighty One of Jacob - has sent me to you." And He further said, "This is My name forever, the name by which I am to be remembered from generation to generation," Exodus 3:15.

Ever wondered why the Almighty wanted Himself to be known and be called by that name "YaHWeH"?

The hieroglyphics in the blue Sapphire Stone Tablets may provide a clue. The Ten Commandments begins with the self introduction of the giver of the commandments: "I am YaHWeH your Mighty One, who brought you out of Egypt, out of the land of slavery," Exodus 20:2.

His name in the Sapphire Stone is expressed in a 4 symbol hieroglyphics written by the Almighty's own finger: Yod, He, Waw, He. What do those symbols mean to us? What do those symbols mean to Him?

Yod is a Hebrew hieroglyphic symbol of a hand. The hand is used to represent giving and receiving.

He, this is symbolized by a sprouting plant. It represents light or life moving towards the light.

Waw is symbolized by a balance. This is used to connect, at times representing justice and mercy.

Yod and He is YaH, these when combined means Giver of Life. When we say HalleluYaH, it means Praise ye Giver of Life.

Waw connects the two He in He Waw He. This means from life to life, justice and mercy from life to life, or justice and mercy from eternity to eternity.

Yod He Waw He, pronounced YaHWeH, collectively, the symbols means the Eternal, Just and Merciful Giver of Life.

The blue Sapphire Stone Tablets do not just tell us of a name. The symbols depict the character of the owner of the name. We see here the Creator lending His wisdom through the letters of the Sapphire Stone Tablets, that we may see and understand His nature.

What Does Aleph Means?

The English alphabet begins with an "a". What does "a" means? Nothing! The word "alphabet" is etymologically Greek which means alpha & beta, and what does "alpha" means? Nothing! But the Greek writing symbols were derived from the Hebraic system of writing which they call aleph beth, and what does "aleph" means? Something.

In one of the discourses of Yahshua the Messiah, commonly known Jesus, he asked the elders "what does aleph means?" This is a very profound question for us now, although the elders, in their own Hebraic culture, can provide an equally profound answer.

Aleph itself is profound, and the answer to the question will lead us into the profoundness of the rest of the letters of the Hebrew alphabet which consists of 22 symbols. All these symbols were taught by the Almighty Himself to the children of Israel via two tablets of stones. Aleph leads us to the wisdom of the Creator.

The first man was called by the name Adam (peace be upon him). The Almighty thought that was appropriate. In Hebrew writings, his name consisted of three letters: Aleph, Daleth, & Mem. By Hebrew hieroglyphics, aleph means first or beginning, as in the aleph and the tau (the beginning and the perfection). Daleth is symbolized by a door. And mem is water which is sometimes used to represent people or multitude. The letters in the name of Adam would collectively mean as the first door of the multitude. He was the first person commonly called man, the first woman was pulled out from him, and the children of men begun with the fragmentation of Adam's soul into seeds through the woman. Indeed, it was profoundly appropriate that the Creator should call him ADAM, and the Almighty's wisdom was first revealed in "Aleph."

Who Wrote the First Two Pages of the Bible?

I am one of those who had been reading the Sacred Scriptures of the Hebrew people, and the wisdom of the Scriptures never failed to amaze me. It does not only give me inspiration and insights, but it also gives me a peek into the wisdom of the Almighty who wrote the Bible's first two pages.

Wait a minute! The Bible's first book is Genesis and the scribes wrote all of them, of course. But the whole book of Genesis which begins with the word "Bereshit" (in the beginning) was based on the letters of the original first two pages which starts with the word "Anoki" (I am). And these two pages are not found in Genesis but somewhere else!

Remember, when the children of Israel left Egypt, they brought with them their tales and their stories handed to them from generation to generation by word of mouth. They also brought with them the understanding of the Egyptian hieroglyphics which they cared not to use in transcribing their stories. Then how did they come up with Genesis in writing?

Only a few months after the Hebrews left Egypt, Moses (peace be upon him), the Hebrew leader went up to meet with the Almighty at Mount Sinai where he was given the two tablets of the Testimonies, the tablets of stone inscribed by the finger of the Almighty. In them were the Ten Commandments, and a new hieroglyphics for the Hebrews to learn which they were to use in transcribing the additional instructions which they were to receive, and the stories which had been handed down to them. In these two tablets were the very letters they used in writing the stories of Genesis and all others up to Deuteronomy.

Ten Commandments in Sapphire Stone Tablets?

It was said that when the Mighty One of  the patriarch Abraham  gave Israel His ten commandments, He wrote them in two tablets of precious sapphire stones. The words were written in a new and very unique texts, we might call it heavenly texts, by the fingers of the Almighty. The letters were in use for some time until they were changed and later replaced by the present Hebrew texts, although the names of the letters remained.

What were really written in the two tablets of sapphire gemstones? Were they the words in Exodus 20:2-17? How were they written and arranged in the tablets? Who knows?

The image at right are the ten commandments in Exodus in the present Hebrew texts equally divided in two tablets.

Rule of 72 - How Compound Interest Works

The rule of 72 is a mathematical concept which approximates the number of years it would take to double the principal at a constant rate of return. In finance, this rule is used to estimate how many interest periods it would take to double your initial savings or investments. To obtain the number of interest periods, divide the number 72 by the interest rate that your savings or investment is earning.

For example, how many years will it take for a $1,000 to double with an interest rate of 8% per annum?

Divide the number 72 with 8 (interest rate) and you will get the approximate number of years to double your money which is at the end of the ninth year.

However, the performance of investments fluctuates so the actual time it takes an investment to double cannot be predicted with certainty, and there is no guarantee that an investment or saving program can outpace inflation.

How Can We Walk Safely?

Therese Iknoian, a Nike fitness athlete and educator recommends the following safety rules for walkers:

1. Use bike paths or sidewalks, otherwise, walk facing oncoming traffic. When you get into a blind curve, walk on the outside of the curve.
   
2. Walk defensively. Not every locale recognizes a pedestrian right of way, don't assume it. Never challenge vehicles, bad drivers will be very glad to take it.
   
3. Wear light-colored or reflectorized clothing at dusk, dawn, and night. Bright colors attract attention too. Or find tracks or other areas that are lit well at night.
4. Always carry identification with you. This helps in case you get into an accident or medical emergency. If you're travelling, carry the name of the hotel where you are staying.
5. If possible, walk with a companion. Otherwise, tell someone where you're going and when you expect to return.
6. On a path, stay to the right so faster walkers, runners, and cyclists or skaters can pass. Avoid "pack walking" which clogs trails.
7. On a track, stay in the outside lanes, unless you're doing a structured, timed workout.
8. Leave the personal stereo at home so you'll be alert to dangers, be they animal, human, or urban.

Why Should We Walk?

Researchers have found that walking improves health and significantly affects the components of physical fitness.

1. Body Composition. According to studies, walking four times a week for 45 minutes each time, you can lose 18 pounds in a year even without a change in diet. Walking can help trim your fat and tone your muscles.
2. Cardiovascular Fitness. Walking two or three times a week for 20 minutes increases your cardiovascular strength. By increasing the strength of the heart and lungs, you consequently increase your ability to exercise longer and harder. It also enable you to perform your daily tasks without getting tired too soon.
3. Muscular Endurance. Walkers develop a moderate amount of endurance, which enables them to exercise for a longer time before they get tired or exhausted. Race walkers have been found to have a high endurance which may be comparable to marathon runners.
4. Muscular Strength. You gain some muscular strength with walking. Muscles that get an extra workout with this exercise include the entire back of the leg, from the calves to the hamstrings to the gluteals in the buttocks. You also use your upper body muscles in the back and the shoulders because of the arm swing.

What Are Some Of The Rules For A Healthy Living?

Medical experts recommends the following rules for healthy living:

1. Don't smoke. If you smoke, best to quit now. Smoking has been found as a leading cause of death in the US. It is a major factor in the development of coronary heart disease and in cancers of the lung, mouth, esophagus, throat, bladder, and cervix. It has also been found that smoking accelerates the aging of the skin, bones, and of the lungs. It makes you look and feel older than your actual age.
   
2. If you drink alcohol, drink only in moderation. It is never recommended for a pregnant woman to drink any alcohol. If you are driving or working, alcohol lessens your alertness, thus, increases your exposure to untoward incidents.
   
3. Find some exercise that you enjoy. Do it at least 30 minutes each day, at least five times a week. And of course, do it consistently.
   
4. Eat a wide variety of naturally occurring foods, including whole grains, fresh fruits and vegetables. Be moderate with fatty foods. Buy a juicer, make and drink fresh vegetable juices daily.
   
5. Keep your body trim. As it has been said, the longer your waist, the shorter your life.
6. See your doctor and have your regular medical check-ups.

How Do We Strengthen Our Heart & Lungs?

Medical experts says that the benefits of exercise are universal. Physical activity significantly reduces a person's chances of suffering a heart attack by increasing oxygen supply to the heart muscle. It also increases blood flow to the heart and reduces irregularities in its rhythm.

Exercise has been found to lessen fatigue. It clears arteries of cholesterol, and enhances the ability of the blood to dissolve clots. This , in effect, lowers a person's blood pressure.

For cardiovascular conditioning, the exercise must be aerobic to promote the use of oxygen. Health authorities say you must bring your heart rate to 60% to 70% of its maximum (low intensity workout zone). Though some push themselves beyond this level, say 80% (moderate intensity workout zone), it is recommended that you consult your doctor first. To estimate your maximum heart rate, subtract your age in years from 220. Your target rate for exercise is between 60% and 70% of that number. Or just simply refer to the table.

The pulse (heart rate) can be taken by placing a finger on your wrist or your neck and counting the beats in six seconds, then multiply it by ten. That means you must stop for six seconds to check your heart rate. You do this to make sure you are doing enough but not overdoing it.

Walking two or three times a week for at least 20 minutes increases cardiovascular strength. By increasing the strength of your heart and lungs, you consequently increase your ability not only to exercise longer and harder but also to perform everyday tasks without tiring.

What's Up in Heaven?

I once asked an old wise man: How do we work in heaven?

And he answered:

You do not work in heaven, it is much of a temple, worship is done there. You work in paradise, it is much like earth, yet even much greater. But you will not work for bread, manna is all around, it is free, and it leaves no residue. They don’t have comfort rooms there, nothing defiles in that place. You will again tend and keep your home garden which had been your noble assignment since the beginning of your great grandfather’s time. Of course, not as a farmer, but more of a landscape artist. The animals, you will rule over them; but you will also have to take care of them because they are your next best friends. You may assign them to their appropriate places to add beauty and impact on the sceneries you have created. The people, the Almighty will rule over them; but, they will be your buddies, you will love their compliments, as much as they will love yours.

Meantime, get to know your mother earth. Know the nature of trees and herbs; know the needs of great and small animals; learn to deal fairly with your own kind, lest you be deprived of that great and noble work.

______________________________

"Blessed is he who has found his work, let him ask no other blessedness. "- Thomas Carlyle, Past & Present (1843)

Why Work?

I remember this anecdote which I read from a magazine, though I don’t remember from which that was, my memory has become older than my age… but the story goes this way:

An executive, quite successful in his profession met a car accident. Bewildered by the sight of himself reclining lifeless was approached by an angel and was asked to come with him. He obligingly acceded and was brought to a place were he was to stay.

The place seemed familiar and not different from the usual places that he visited when he was still alive. There were banquets with people, men and women, common in his life. There were much food and wine, and his time was spent in enjoyment and celebration. The same activities happened night after night for there was no day in that place, though there were plenty of electricity, and bonfires.

Nights passed after another until he finally got bored, he called for the angel that brought him to the place and demanded: “If you cannot give me something to work on here, I’d rather be in hell.” And the good angel responded: “That’s where you are!”

__________________________________

This reminded me of Mahatma Gandhi who points out that the state of indolence, though delightful, is very distressing. Man has to find something to put his hands on to be happy.

Where Are My Brothers?

I have lifted my eyes unto the hills, from whence cometh my help?

I have laid my body on concrete paved bed, who will lend me a roof?

The pangs of hunger has numbed my senses, who will share me his food?

My cloak is good for a cover, but not enough for a blanket.

Day to day, a hundred people pass by me, I am not their brother...

(Photo taken in Davao City, Philippines, June 4, 2008)

Could This Be Love?

What in your looks reveals the thoughts that words can less transpire? What in your thoughts brings us closeness that distance I ignore? What in our closeness gives me warmth I long have yearned for? What in that warmth burns me with a passion I cannot resist? And what in contending against that passion that possesses me makes me more willing, yield to the spell that binds my soul without the least regret? What in all these makes life worth living?

It must be love…

The Profits of Labor

What profit has a man from all his labor in which he toils under the sun?* The toil abrades the tool of steel, yet quickly thickens his hands of flesh; it beats his shoulders with loads of weights, but his bony blades it cannot break. The burning sun, though chafed his lips, cannot restrain a wife’s warm kiss.

What soothes the soul from his day of burden? A fresh pack of McDonald’s and a cold cup of Coke, a refreshing for the sore in the heart.

____________________

*Ecclesiastes 1:3, NKJV

A Journey to Life

Life is a journey, so they say, but where do I go? No one can number my steps. Where will it lead me? No one can tell. I walked for the hills, life took me to the plains. I encamped on the plains, it brought me by the waters, and showed the other side of the river. It then beacons at the other bank, restless as the openings of the road. As life breaks graves, so does the journey continue, never to cease.