FEW THUMB RULES HELP IN FINANCIAL DECESIONS;-
1⃣> 100 MINUS AGE SHOULD BE OUR EQUITY ALLOCATION.
2⃣> MINIMUM 20 TIMES OF OUR YEARLY INCOME SHOULD BE OUR RETIREMENT FUND.
3⃣> WE ALL SHOULD SAVE MINIMUM 30% OF OUR INCOME.
4⃣> COST OF OUR HOUSE SHOULD NOT BE MORE THAN 6 TO 8 TIMES OF OUR FAMILY INCOME.
5⃣> EMI SHOULD NOT BE MORE THAN 35% OF OUR GROSS MONTHLY INCOME.
ZERO IS THE BEST ANSWER.
6⃣> RATE OF RETURNS IDEALLY SHOULD BEAT INFLATION.
7⃣> RULE OF 72 &115…..
HOW MANY YEARS DOUBLE OR TRIPLE OUR MONEY?
72/RETURNS=DOUBLE IN YRS.
115/RETURNS=TRIPLE IN YRS
8⃣> RULE OF 70= FUTURE BUYING POWER OF YOUR MONEY.
70/INFLATION= NUMBER OF YRS.
9⃣> LIFE COVER SHOULD BE MINIMUM 8 TO 10 TIMES OF YOUR YEARLY INCOME.
🔟> WE SHOULD KEEP 3 TO 6 MONTHS EXPENSES AS AN EMERGENCY FUND..
———MORAL——
PEOPLE WANT SHORTCUTS,THAT’S WHY THUMB RULES FIND SOME PLACE.
WISH YOU ALL DISCIPLINE INVESTING WITH THUMB RULES.
