Sourabh Mishra Profile picture
Jun 13, 2021 11 tweets 5 min read Read on X
Personal Finance Rules -Thread

🔅 Rule of 72 (Double ur Money)
🔅 Rule of 114 (Triple ur money)
🔅 4% Withdrawal Rule
🔅 Asset Allocation Rule
🔅 10, 5, 3 Rule
🔅 50-30-20 Rule
🔅 6X Emergency Rule
🔅 40% EMI Rule
🔅 Life Insurance

#EditedMsgWA
Rule of 72

No. of yrs required to double your money at a given rate, U just divide 72 by interest rate
Eg, if you 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
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
4% Rule for Financial Freedom For retired

Corpus Reqd- 25*Annual Expenses

Eg- annual expense is 500,000 then corpus required to retire is 1.25 cr.

Put 50% into fixed income & 50% into equity, Withdraw 4% every yr, i.e.5 lac.

This rule works for 96% of time in 30 yr period
Asset Allocation Rule

This rule is used for asset allocation. Subtract your age from 100 to find out, how much of your portfolio should be allocated to equities

Age 35

Equity : 65%
Debt : 35%

Age 60

Equity : 40%
Debt : 60%
10-5-3 Rule

One should have reasonable returns expectations

10% Rate of return - Equity / Mutual Funds
5% - Debts ( Fixed Deposits or Other Debt instruments)
3% - Savings Account
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

Atleast try to save 20℅ of your income.
You can definitely save more
6X Emergency fund Rule

Always put atleast 6 times your monthly income in Emergency funds for emergencies such as Loss of employment, medical emergency, etc.

6 X Monthly Income
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 more than 20,000 .

This Rule is generally used by Finance companies to provide loans. You can use it to manage your finances.
Life Insurance Rule

Have Sum Assured as Min 20 times of your Annual Income

20 X Annual Income

Say you earn 5 Lacs annually, u should have at least 1 crore insurance by following this Rule..
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More from @iSourabhMishra

Aug 31, 2020
#Thread : Bitter Truth of Capitalism

In this era of Corporatarisation, one of important lesson, the management try to teach their new recruits is

WIIFM (What's In It For Me)

Bcoz they want the profit earning robots not human as their employees

#StopDisinvestment

1/n
Indian Banking Industry is no exception !!

Even though, Public Sector Banks are aimed for the financial inclusion of unbanked class too, Pvt Banks have aim to earn the profits via serving (better I term exploiting) elite class !!

#StopDisinvestment
#StopPrivatisation

2/n
A big proof to this statement is the meagre contribution from Pvt Banks in many Flagship schemes of Govt like PMJDY, PMMY, PMSBY, PMJBY etc. which were aimed at society upliftment !!

#StopDisinvestment and #StopPrivatisation is much needed to avoid shift in aims for PSBs !!

3/n
Read 6 tweets
Jun 3, 2020
Customer Service is the key to survive for PSBs

The thread is a little long but could be useful in the context of enhancing the customer service standards in branch banking specifically for PSBs..

Out of my 13+ yrs of experience with three different kind of banks..

#SavePSB
I have no shame to accept the fact that PSBs are far below in customer service standards in banking. Data and reports may differ but it's an outcome of my banking experience.

You may get a clue n a way to act on for the survival of PSB status of (y)our bank n #StopPrivatisation
Even though after 1994, entry of big pvt banks in the banking, the PSBs have started to understand the essence of customer service but still there is a long way ahead..

It took time to realise d competition they have from pvt players to retain elite customers..

#SavePSB
Read 16 tweets

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