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Some important Personal Finance Rules

Rule of 72 (Double Your Money)

Rule of 114 (Triple)

Rule of 144 (Quadruple)

Rule of 70 (Inflation)

4% Withdrawal Rule

100 - Minus Age Rule

10, 5, 3 Rule

50-30-20 Rule

3X Emergency Rule

40℅ EMI Rule

Life Insurance Rule


Rule of 72


No. of yrs required to double your money at a given rate, U just divide 72 by interest rate

Eg, if you want to know how long it will take to double your money at 8% interest, divide 72 by 8 and get 9 yrs


At 6% rate, it will take 12 yrs

At 9% rate, it will take 8 yrs


Rule of 114


No. of years required to triple your money at a given rate, U just divide 114 by interest rate.


For example, if you want to know how long it will take to triple your money at 12% interest, divide 114 by 12 and get 9.5 years


At 6% interest rate, it will take 19yrs


Rule of 144


No. of years required to quadruple your money at a given rate, U just divide 144 by interest rate.


For eg, if you want to know how long it will take to quadruple your money at 12% interest, divide 144 by 12 and get 12 yrs.


At 6% interest rate, it will take 24yrs


Rule of 70


Divide 70 by 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.


4% Rule for Financial Freedom


Corpus Required- 25*Annual Expenses


Eg- annual expense is 500,000 then corpus required to retire is 1.25 cr.


Put 50% into fixed income & 50% into equity.


Withdraw 4% every yr, i.e.5 lac.


This rule works for 96% of time in 30 yr period


100 minus your age rule


This rule is used for asset allocation. Subtract your age from 100 to find out, how much of your portfolio should be allocated to equities


Age 30


Equity : 70%

Debt : 30%


Age 60


Equity : 40%

Debt : 60%


10-5-3 Rule


One should have reasonable returns expectations


10℅ Rate of return - Equity / Mutual Funds

5℅ - Debts ( Fixed Deposits or Other Debt instruments)

3℅ - Savings Account


50-30-20 Rule - Allocation


Divide your income into

50℅ - Needs - Groceries, rent, emi

30℅ - Wants - Entertainment, vacations, etc

20℅ - Savings - Equity, MFs, Debt, FD, etc


Atleast try to save 20℅ of your income.

You can definitely save more


3X Emergency Rule


Always put at least 3 times your monthly income in Emergency funds for emergencies such as Loss of employment, medical emergency, etc.


3 X Monthly Income


You can have around 6 X Monthly Income to be on a safer side


40℅ EMI Rule


Never go beyond 40℅ of your income into EMIs.


Say you earn, 50,000 per month. So you should not have EMIs more than 20,000 .


This Rule is generally used by Finance companies to provide loans. You can use it to manage your finances.


*Life Insurance Rule *


Always have Sum Assured as 20 times of your Annual Income


20 X Annual Income


Say you earn 5 Lacs annually, u should at least have 1 crore insurance by following this Rule