Few thumb rules help in financial decisions-
1) 100 minus our age should be our equity allocation.
2)Minimum 20 times of our yearly income should be our retirement fund.
3) We all should save minimum 30% of our income
4) Cost of our house should not be more than 6 to 8 times of our family income.
5) EMI should not be more than 35% of our gross monthly income. ZERO IS BEST ANSWER
6) Rate of returns ideally should beat inflation.
7) Rule of 72 & 115……
How many years double or triple our money ?
* 72/Returns= double in yrs
* 115/ returns = triple in yrs.
8) Rule of 70= Future buying power of your money.
*70/Inflation= Number. of yrs.
9) Life cover should be Minimum 10 times of your yearly income.
10) We should keep 3 to 6 months expenses as an emergency fund.
11) we should have minimum Mediclaim of 5 lakh.
Moral-
People want shortcuts, that’s why thumb rules find some place.
Wish you all Discipline investing with thumb rules. 🙂
Happy Investing
Investallign
Unlocking an Upcoming Investment Opportunity: Rubicon Research IPO Rubicon Research is making headlines with its…
Unlocking the Canara Robeco Asset Management Company IPO: A Guide for Every Investor Did you…
Imagine you’re at a big family gathering and suddenly, your relatives start arguing about who…
Shlokka Dyes IPO: Is It Worth Your Investment? Did you know that Shlokka Dyes is…
LG India IPO: Should You Buy a Piece of Your TV and Fridge Company? Introduction…
Did you know that starting your retirement planning in India before your 40s can make…
This website uses cookies.
