Along with earning money, it is also important to manage it well. These 10 simple financial rules will help you manage your savings, investments and expenses in an easy way. By following these rules, you can build a safe and stable financial future for the long term.

Easy Rules to Grow and Protect Money

  1. Rule of 72: This rule tells in how many years money will double. Example: at 12% return, money doubles in 6 years. It helps in long-term planning.
  2. Rule of 70: This rule shows the effect of inflation. Example: with 7% inflation, money value becomes half in 10 years. It reminds you to plan for inflation.
  3. 4% Withdrawal Rule: In retirement, withdraw only 4% of your savings each year. Example: from ₹1 crore, you can take ₹4 lakh safely. This way money will not finish early.
  4. 100 – Age Rule: This rule helps in asset allocation. Example: if age is 30, then 70% in equity and 30% in debt. It balances risk and return.
  5. 10-5-3 Rule: This shows possible returns. Around 10% from equity, 5% from debt, and 3% from savings. It helps in realistic planning.
  6. 50-35-15 Rule: Spend 50% income on needs, 35% on wants, and 15% on savings. It builds financial discipline.
  7. 6X Emergency Fund Rule: Keep 6 months of expenses as emergency fund. Example: if monthly cost is ₹50,000, then save ₹3,00,000. It helps in sudden needs.

Easy Rules for Debt and Insurance

41% EMI Rule: EMIs should not be more than 41% of monthly income. Example: if income is ₹1,00,000, EMIs must be below ₹41,000.
Debt-to-Income Rule: Total debt payment should not cross 30% of income. Example: if income is ₹1,00,000, loan payments should be max ₹30,000.
Life Insurance Rule: Take term insurance equal to 20 times annual income. Example: if income is ₹10 lakh yearly, take ₹2 crore cover. It gives family security.