9 Personal Finance Rules for You

Rule of 72 Double Your Money

Divide the Rate of Intrest of Investment with 72. You will get the Years for Doubling Your Money.
Rule of 70 of Inflation

Divide 70 by the Current Inflation Rate to know when the Value of Investment will get reduced to Half its Present Value.
4 % Rule for Financial Freedom

Corpus Required is 25 Times of Annual Expenses. Take 50 % as Fixed Income & Put 50 % in Equity.
100 Minus Your Age Rule for Asset Allocation

Subtract Your Age from 100 to Get Your Portfolio Allocation % needed for Equities.
10-5-3 Rule for Returns

10 ℅ Rate of Return for Equity & Mutual Funds, 5℅ Debts for Fixed Deposits or Other Debt Instruments, 3℅ for Bank Savings Account
50-30-20 Rule of Income

Divide your Income 50% for Everyday Needs, 30% for Lifestyle Wants, 20% for Savings.
3X Emergency Fund Rule

Keep 3 Times Your Monthly Income as Emergency Funds or Liquid.
40℅ EMI Rule

Your EMIs should never go Beyond 40℅ of Your Income.
Life Insurance Rule

Always have Sum Assured as 20 Times of Your Annual Income.
Disclaimer

These #9 Rules may be favourable for many & may not be suitable to others. It is always advised to invest and save in life for future needs & happiness.
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