A Thread on Personal Finance💰
Spare few minutes to read this useful & imp. thread⬇️
1. Rule of 72 (Double Your Money)
2. Rule of 114 (Triple)
3. Rule of 144 (Quadruple)
4. Rule of 70 (Inflation)
5. 50-30-20 Rule
6. 3X Emergency Rule
7. 40℅ EMI Rule
8. Life Insurance Rule
Spare few minutes to read this useful & imp. thread⬇️
1. Rule of 72 (Double Your Money)
2. Rule of 114 (Triple)
3. Rule of 144 (Quadruple)
4. Rule of 70 (Inflation)
5. 50-30-20 Rule
6. 3X Emergency Rule
7. 40℅ EMI Rule
8. Life Insurance Rule
1. Rule of 72
No. of yrs required to double your money at a given rate, U just divide 72 by interest rate
Eg, if U want to know how long it will take to double your money at 8% interest, divide 72 by 8 and get 9 yrs
At 6% rate, it will take 12 yrs
At 9% rate, it will take 8 yrs
No. of yrs required to double your money at a given rate, U just divide 72 by interest rate
Eg, if U want to know how long it will take to double your money at 8% interest, divide 72 by 8 and get 9 yrs
At 6% rate, it will take 12 yrs
At 9% rate, it will take 8 yrs
2.Rule of 114
No. of years required to triple your money at a given rate, U just divide 114 by interest rate.
For example, if you want to know how long it will take to triple your money at 12% interest, divide 114 by 12 and get 9.5 years
At 6% interest rate, it will take 19yrs
No. of years required to triple your money at a given rate, U just divide 114 by interest rate.
For example, if you want to know how long it will take to triple your money at 12% interest, divide 114 by 12 and get 9.5 years
At 6% interest rate, it will take 19yrs
3.Rule of 144
No. of years required to, quadruple your money at a given rate, U just divide 144 by interest rate.
For eg, if U want to know how long it will take to quadruple your money at 12% interest, divide 144 by 12 and get 12 yrs
At a 6% interest rate, it will take 24yrs
No. of years required to, quadruple your money at a given rate, U just divide 144 by interest rate.
For eg, if U want to know how long it will take to quadruple your money at 12% interest, divide 144 by 12 and get 12 yrs
At a 6% interest rate, it will take 24yrs
4. Rule of 70
Divide 70 by the current inflation rate to know how fast the value of your investment will get reduced to half its present value.
The inflation rate of 7% will reduce the value of your money to half in 10 years.
Divide 70 by the current inflation rate to know how fast the value of your investment will get reduced to half its present value.
The inflation rate of 7% will reduce the value of your money to half in 10 years.
5. 50-30-20 Rule - Allocation
Divide your income into
50℅ - Needs - Groceries, rent, EMI
30℅ - Wants - Entertainment, vacations, etc
20℅ - Savings - Equity, MFs, Debt, FD, etc
At least try to save 20℅ of your income.
You can definitely save more
Divide your income into
50℅ - Needs - Groceries, rent, EMI
30℅ - Wants - Entertainment, vacations, etc
20℅ - Savings - Equity, MFs, Debt, FD, etc
At least try to save 20℅ of your income.
You can definitely save more
6. 3X Emergency Rule
Always put at least 3 times your monthly income in Emergency funds for emergencies such as loss of employment, medical emergency, etc.
3 X Monthly Income
You can have around 6 X Monthly Income to be on a safer side
Always put at least 3 times your monthly income in Emergency funds for emergencies such as loss of employment, medical emergency, etc.
3 X Monthly Income
You can have around 6 X Monthly Income to be on a safer side
7. 40℅ EMI Rule
Never go beyond 40℅ of your income into EMIs.
Say you earn, 50,000 per month. So you should not have EMIs of more than 20,000.
This Rule is generally used by Finance companies to provide loans. You can use it to manage your finances.
Never go beyond 40℅ of your income into EMIs.
Say you earn, 50,000 per month. So you should not have EMIs of more than 20,000.
This Rule is generally used by Finance companies to provide loans. You can use it to manage your finances.
8. Life Insurance Rule
Always have Sum Assured as 20 times of your Annual Income
Thank you for patiently reading the thread 😃😇🙏
Always have Sum Assured as 20 times of your Annual Income
Thank you for patiently reading the thread 😃😇🙏
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