The 50/30/20 rule, which tells you that 50% of your income must be spent on needs, 30% can be spent on wants, and 20% can be dedicated to your savings and investments
2. Rule of 72
Want to know how much time it will take to double your money? Here is the rule of 72, which tells the time needed to double your money. It is calculated by dividing 72 by the interest rate
The 4% rule suggests that a retiree should be able to withdraw 4% of the balance in the first year after retiring, and then withdraw the same amount, adjusted for inflation, every year thereafter for approximately 30 years
3. The 4% rule
4. 100 minus age
Confused about the ideal asset allocation for your portfolio? Just subtract your age from 100, the number you will get can be your equity allocation.
5. 20/4/10 rule
Looking to buy a car? Make sure that you make 20% as down payment and the tenure of the loan should not be more than 4 years, while the EMI remains less than 10% of your monthly income.
6. Get advice from a QFA
While these rules can guide you in your personal finance journey, it is always a good idea to consult a Qualified Financial Advisor (QFA) to help you out.