Step 5 of 8
Two money math tricks
1. The Rule of 72
Divide 72 by a yearly return to see roughly how many years it takes your money to double.
Years for your money to about double
12 years
At 6% a year, ₱100,000 becomes about ₱200,000 in 12 years and ₱400,000 in 24. It works in reverse too: at 4% inflation, prices double in about 18 years.
2. Real return = return − inflation
What matters is how much more your money can buy, not just how many more pesos you have.
Regular savings account
- Return
- 0.1%
- Inflation
- 4%
- Real return
- About −3.9%
Digital bank, after 20% tax
- Return
- 3.2%
- Inflation
- 4%
- Real return
- About −0.8%
Pag-IBIG MP2 (2025 rate, tax-free)
- Return
- 7.1%
- Inflation
- 4%
- Real return
- About +3.1%
| Where your money is | Return | Inflation | Real return |
|---|---|---|---|
| Regular savings account | 0.1% | 4% | About −3.9% |
| Digital bank, after 20% tax | 3.2% | 4% | About −0.8% |
| Pag-IBIG MP2 (2025 rate, tax-free) | 7.1% | 4% | About +3.1% |