Important Thumb Rules of Finance

Rule Name
Rules
6 months car rule
Your car price shouldn't be more than your 6 months’ salary
Emergency fund rule
You should have up to 6 months of your salary as an emergency fund
Retirement rule
Whenever you have investments of 30 times your current annual income, you can retire.
First-year salary rule
You shouldn't take out more student loans than you expect to make the first year on the job.
Life cover rule
You should take term insurance worth 10 times your annual salary
House price rule
You shouldn't buy a home more than 5 times your annual income. Loan EMI Shouldn’t be more than 40% of your monthly salary.
Diversification rule
No more than 10 mutual funds (Equity, Debt & Hybrid) in your portfolio

credits: https://www.investyadnya.in



Comments

  1. Thank you so much for the post you do. I like your post and all you share with us is up to date and quite informative, i would like to bookmark the page so i can come here again to read you, as you have done a wonderful job. Why financial freedom is important

    ReplyDelete
  2. I really like your take on the issue. I now have a clear idea on what this matter is all about.. Become a successful entrepreneur

    ReplyDelete
  3. I really loved reading your blog. It was very well authored and easy to understand. Unlike other blogs I have read which are really not that good.Thanks alot! Bookkeeping in cleveland oh

    ReplyDelete

Post a Comment

Popular Posts