Confused about financial Decisions ? Read this Firsr

Few thumb rules help in financial decisions-
.

1. Rate of returns ideally should beat inflation.

2. We all should save minimum 30% of our income

3. We should keep 3 to 6 months expenses as an emergency fund.

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 the best answer.

6)Minimum 10 times of our yearly income should be our retirement fund.

1. Rule of 72 & 115......
   How many years double or triple our money ?

• 72/Returns= double in yrs

• 115/ returns = triple in yrs.

1. Rule of 70= Future buying power of your money.
   *70/Inflation= Number. of yrs.

2. 100 minus our age should be our equity allocation

3. Life cover should be Minimum 8 to 10 times of your yearly income.

Moral-
Peple want shortcuts, that's why thumb rules find some place.