Financial Mantra for Life.

Welcome to new financial year.

Few thumb rules help in financial decisions-

1) 100 minus our age should be our equity allocation. 2)Minimum 20 times of our yearly income should be our retirement fund. 3) We all should save minimum 30% of our income 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. 6) Rate of returns ideally should beat inflation. 7) Rule of 72 & 115...... How many years double or triple our money ? * 72/Returns= double in yrs * 115/ returns = triple in yrs. 8) Rule of 70= Future buying power of your money. *70/Inflation= Number. of yrs. 9) Life cover should be Minimum 10 times of your yearly income. 10) We should keep 3 to 6 months expenses as an emergency fund. 11) we should have minimum Mediclaim of 10 lakhs.

Moral- People want shortcuts, that's why thumb rules find some place. Wish you all disciplined investing & start investing.