Personal Finance

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7 Personal Finance Rules that will help you save more money - https://twitter.com/QCompounding/status/1742177820627902604

  1. Rule of 72 - You know how long it takes to double your money?
  2. 100- Age Rule - You want to know how much % of your assets you should invest in equity? Subtract 100 by your ago to find out.
  3. 50-30-20 Rule - Here's how to budget your income:
    1. 50% Spend on needs (bills, education, transport, food etc)
    2. 30% on wants (Holidays, Movies, restaurants etc)
    3. 20% Savings and investments
  4. 1st Week Rule - Invest 10-20% of your income and always put it aside in the first week of the month.
  5. 6X Emergency Fund - Your emergency fund should be equal to 6x your monthly income.
  6. 40% EMI Rule - The maximum loan you can take should not eat up more that 40% of your net monthly income.
  7. 25X Retirement Rule - This rule says that u can think about retirement when u have funds worth 25 times your annual expenses.

Finance - Rules