Nine Personal Finance Rules we all should know
1) Rule of 72 (Double Your Money) 2) Rule of 70 (Inflation) 3) 4 % Withdrawal Rule 4) 100 Minus Age Rule 5) 10, 5, 3 Rule 6) 50-30-20 Rule 7) 3 X Emergency Rule 8) 40 ℅ EMI Rule 9) Life Insurance Rule 1) Rule of 72 Number of years required to double your money at a given rate. Divide 72 by interest rate e.g., if you want to know how long it will take to double your money at 8 % interest, divide 72 by 8 and get 9 years, At 6% rate, it will take 12 years and at 9% rate, it will take 8 years. 2) 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. Inflation rate of 7% will reduce the value of your money to half in 10 years. 3) 4 % Rule for Financial Freedom Corpus Required = 25 times of your estimated Annual Expenses. E.g.- if your annual expense after 50 years of age is 500,000 and you wish to take VRS then corpus required is 1.25 Cr. Put 50 % of this into fixed inco