Thread by @themukulagrawal

Top 8 Outstanding #PersonalFinance Rules will save you 💹 4X more Money.

1. Rule of 72 - (2X your Money)
2. Rule of 114 - (3X your Money)
3. 40% EMI Rule
4. 3.4 Cr Retirement Rule
-
-
& More [A Thread]👇 ...

#money #investing #moneyrule

1/ Rule of 72 📌

This rule will tell you how much time it takes to 2X your Investment.

By dividing the number 72 by the annual rate of return

➡️ Investment - 2 Lakh
➡️ Rate - 6%
➡️ Divide - 72/6 = 12 Yrs.

Your Rs 2 lakh will become
Rs 4 lakh in 12 years.

2/ Rule of 114 📌

Same this Rule will tell you how much time it takes to 3X your Investment.

➡️ By dividing the number 114 by the annual rate of return

You can use the above method for calculation.

3/ Follow 3X Emergency Rule 📌

You should always put at least 3 times your monthly income in Emergency funds

In case of exigency caused by loss of employment, medical emergency, etc.

4/ 40% EMI Rule 📌

The total EMI that you pay for all your loans should not exceed 40% of your income.

If your income is, 50,000 per month. So you should not have EMIs of more than 20,000.

5/ 20/10/4 Car Buying Rule 📌

This is a Great thumb rule used while buying a car on a loan

➡️ Make a down payment of 20%

➡️ EMI Should be less than 10% of your Income.

➡️ Your Loan Tenure does not exceed more than 4 Yrs

6/ 50- 20 -30 Car Buying Rule 📌

This is the Golden rule for budgeting.

Divide your Income into 3 Parts

➡️ 50% - Needs (Groceries, rent, etc).
➡️ 20% - Wants (Entertainment).
➡️ 30% - Invest (Equity, Gold, M.F).

7/ 10% for retirement rule 📌

➡️ Start Investing 10% of your Income.
➡️ At the average rate of 10%.
➡️ & Increase 10% every year.

Suppose, You start Investing Rs 3,000 /month. and increase by 10% every year.

Till retirement, you will have Rs 3.4 Cr. in your bank account.

8/ 5/20/40 Home Buying Rule! 📌

Plan your budget while buying any property or House

➡️ 5 - The cost of a house should not exceed 5 times your annual income.

➡️ 20 - The loan Period should under 20 Yrs.

➡️ 40 - EMI should not exceed 40% of your monthly income.

So, these are some best Finance rule everyone should know about.

But, Pls do your own research before applying any rule.

That's all

Hope you got my point, IF YES
Do Like & RWT

Do Follow us for More
Such Content on Stocks & Finance.

#personalfinacne #money #investment #property #carbuying