Financial Mantra for Life.

Welcome to new financial year.

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.
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 10 lakhs.

Moral-
People want shortcuts, that’s why thumb rules find some place.
Wish you all disciplined investing & start investing.

 

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