Top 11 Financial Planning Thumb Rules | Learn With ETMONEY
Вставка
- Опубліковано 13 чер 2024
- A rule of thumb refers to something which can be easily learned and easily applied to a situation. These rules are mostly based on practical experience and are present everywhere .. including investing. In this video, Shankar Nath tells us 11 popular thumb rules that you can use in growing, saving and managing your money.
What’s covered in the video:
00:00 Introduction
00:30 RULE OF 72
01:28 RULE OF 114
02:39 RULE OF 70
03:34 10-5-3 RULE
04:15 100 MINUS AGE RULE
05:18 4% WITHDRAWAL RULE
06:27 50-30-20 RATIO
07:35 3X EMERGENCY FUND RULE
08:27 1 WEEK SPENDING RULE
09:48 40% EMI RULE
10:37 20X LIFE COVER RULE
👉 Some Must Read Books for Your Money Library
📚 Rich Dad Poor Dad : amzn.to/3pJkVL1
📚 The Psychology of Money : amzn.to/3FNI1Wd
📚 Learn to Earn : amzn.to/3FKmKg1
📚 The Little Book That Still Beats the Market : amzn.to/3HvsKtN
📚 Financial Literacy for Managers : amzn.to/32JUHz0
1. RULE OF 72
The rule of 72 helps you estimate when your money will double. To know when your money will double simply take 72 in the numerator and divide it by rate of return. To reverse this rule to determine how much returns you need from a financial instrument to double your money. Divide 72 by the number of years in which you want to double your money.
2. RULE OF 114
Rule of 114 gives you an estimate of how much time will it take for you to triple your money
For instance if you were to invest 1 lakh rupees in a product that can deliver 12% annual returns then per the rule of 114 this 1 lakh will become 3 lakhs in about 9-and-a-half years
3. RULE OF 70
The rule of 70 estimates the impact of inflation on your wealth.
In other words, this rule determines the value of your current wealth a few years down the line.This is done by using this number 70 and dividing it by the expected long term inflation rate.The resulting number gives you the number of years by when your wealth will be worth half of what it today
4. 10-5-3 RULE
A primal factor in our investment decisions is the expected rate of return.
And the 10-5-3 is a thumb rule that is often cited in most long term investing calculations
The rule is quite simple and says that when making long term decisions expect
-10% annual return from equities
- 5% yearly return from debt instruments
- 3% annualized return from your savings bank account
5. 100 MINUS AGE RULE
The 100 minus age thumbrule is a simple way to program one’s asset allocation i.e. how much one should allocate in equities and how much in debt . This is done by subtracting your age from 100 and the resulting number is the percentage of your wealth that should be invested in equities.
6. 4% WITHDRAWAL RULE
The 4% withdrawal rule is a post-retirement thumb rule .. and helps you determine how long your retirement fund will last. From a 4% context .. the rule says that if you have accumulated x amount of money at retirement then you should withdraw only 4% of this x amount in every retirement year.
7. 50-30-20 RATIO
The 50/30/20 rule of thumb is a guideline for allocating your budget accordingly: 50% to “needs,” 30% to “wants,” and 20% to your financial goals.
8. 3X EMERGENCY FUND RULE
The 3x emergency fund rule is a rather simple one and says that one should .. at all times .. keep three times of your monthly income in an emergency fund
The purpose of this fund will be to keep you financially stable in case of emergencies like loss of employment, urgent travel, repairs, a medical emergency etc.
9. 1 WEEK SPENDING RULE
The 7 Day Rule is a great strategy to prevent impulse spending and buyers remorse. The principle is very simple. You give yourself a “cooling-off period” of 7 days before making purchases.
10. 40% EMI RULE
The 40% EMI rule is something that loan providers and credit card companies use when they first receive a loan application.This thumb rule says that all your EMIs combined should ideally be no more than 40% of your take-home income.
11. 20X LIFE COVER RULE
A personal finance portfolio is never complete without a life insurance policy
So if you have life insurance or are planning to buy one do ensure that the sum assured offered to you is at least 20 times your current annual income.
#ETMONEY #financialplanning #learnwithETMONEY #thumbrules #mutualfunds
👉 To invest in Direct Plans of top Mutual Funds for free, download the ETMONEY app: etmoney.onelink.me/unJQ/5ca1a...
👉Read more such informative articles at www.etmoney.com/blog
👉 Follow us on:
► Facebook: / etmoney
► Twitter: / etmoney
► Instagram: / etmoney_official
► LinkedIn: / et_money
We experienced the pinnacle of our era, but it is now gone. Like what happened to Rome, the corrupt administration will bring this nation to an end. My condolences go out to anyone who is close to retiring and may be worried about whether their pension will be enough to pay the rising cost of living. Insane fiscal policy, poor regulatory policy, poor energy policy, and poor foreign policy
50 and early retirement. I'm very worried about the future and where we're all heading, especially in terms of money and how to get by. I'm considering making my first investment in the stock market, but how can I do so given that the market has been in a mess for the majority of the year?
@@stellaadams593 Personally, I can connect to that. When I began working with "Claudia Trinidad Rivas," a fiduciary financial counsellor, my advantages were certain. In these circumstances, I would always advise getting professional help so they can steer you through choppy markets and just give you indicators and strategies for knowing when to enter and exit the market...
@@brendazvandasara Please tell me how I can think I have such skills. My funds are being murdered by inflation, therefore I'm looking for a more profitable investing strategy to put them to work.
@@gowonjake You can look up the financial advisor using her complete name on your computer; I hire her since she looks after the portfolios of renowned investors.
@@brendazvandasara I greatly appreciate it. I'm fortunate to have come upon your message because investing greatly fascinates me. I'll look her up and send her a message. You've truly motivated me. God's blessings on you
Powerful info.. shud start teaching from high schools, & of course parents too...
Again, very Clear and Crisp ! This was very informative, never came across quality content like this on YT regarding finance.
One of the Best financial channel available..Lucid & Informative as always.
I hope I had such teacher for every Subject..Shankar sir
One of the best compilations I have found over searching online from 4 months... Thanks
Absolutely Fantastic and relevant.
Kudos for creating content which have extremely strong call to action.
A highly underrated Financial Learning channel. Please keep uploading. Thanks!
Best financial education... Thanks ETMONEY Team
Quality educational video every week. Thank you for helping us.
Thank You Very Much For This Much Helpful Video🤗
It have cleared many doubts and i get to know very interesting thumb rules which are deadly 💖
This is the best episode till date. Very useful. Thank you 🙏
Amazing explanation and smart approach. Thank you sir
Excellent Message, awesome presentation - Thanks a lot
I will watch this on loop!! 👍👏
Powerful information. Thanks
Thanks a lot sir for providing such valuable info to us.
Very good video, I want to thank you for sharing this info. Really appreciated.🙏
very useful video sir.. thank u
Superb explanation. Understood all the rules. Thank you sir. Thank you ET money.
Loved it...thank yoi
Very informative video. Things said in the video r very useful in a simplified manner.
Excellent video. Thanks
Sir you are just wonderful, you are doing great justice to your qualifications and experience.
I am becoming your fan.... Sir. Beautiful presention
Very useful info thank you very much sir..
Such a informative video sir.
Please keep making such video.
Thank you.
Simply wow👍.thank you sir🙏
Thank you for the insight Sir. Very good video.
Thanks for this insightful video Shankar sir. All thumb rules in one place.!! Great channel content..ETMoney channel will grow exponentially with gems like this.. 👍🏼
Very much appreciated!
Very precise and informative
Thank you. 🙏
Very good way explaining things in a simple way
Very good message Thanks🙏
Informative! thanks
Nice informative video again..thank you sir
Excellent content on managing money
Very very useful info , thanks
Nice consolidated useful video 👍
Excellent video sir
Thanks for all the information shared
Really useful and excellent info 👍
Highly insightful
Nice presentation thank you
Best video on finance on youtube
Thank you ET MONEY👍
Thank you
Your every video has quality content for free, thank you, Sir
Thank you for sharing 🙏
Most welcome
Very Good Information. Please keep it up.
thanks to etmoney ...❤️
Fantastic Mr. Nath
Excellent information.
Thank you 🙏
I am glad to say I have a financial coach always with me...Thank you sir..🙏 Happy to be part of ET Money 🌈
We are happy to help everyone in their financial journey!
Excellent presentation
Excellent one.
Great rules to discipline your finances
This is excellent - the 72 / 114 / 70 -- all good numbers to be aware. Good one. I had read a modified 4% rule, need to search what it was, and will post the link here, when I find it - that was an interesting read as well.
Glad it was helpful! Check out the 15-15-15 and 15-15-30 rules that we featured in the "How to Build a 10 Crore Corpus" video
Dear Shankar....the way you explain is good , steady and compose....am thinking of having a relationship with ETMoney on the principle that unless you understand investment you cannot explain so well......
Thanks! ❤️
Thank you sir.
As usual one of the best insightful video.Many many thanks ET Money!
Thank you for your appreciation, Amar
Excellent
Very nice sir.
Very informative
Thanks a lot 😇
Thanks a million 4 guiding us we highly appreciate keep it up
Our pleasure! Thanks for liking
Thanks 🙏
Very informative content
Awesome video & info share sirji
Very useful information
Superb
A very informative video as always. Thank you so much for entire ET Money team for the great efforts 👌😍
Thank you Sachin KN
Nice video. Thanks for collating it
Most welcome Mayank Verma
Fantastic 🔥
Thank you for sharing such informative videos. It's through your videos I have started doing financial planning and investing to grow my money.
Most welcome. Glad to know that the videos are assisting you in your financial journey
Excellent info...the rules are of great use in planning...
Glad it was helpful!
Awesome tools for financial planning and well explained. Thanks
Glad it was helpful!
ET. Money ka MVP. 😎😎
The best video teaching about financial planning which should be in the syllabus of our education system as mandatory. I have noted all the rules in my notepad so that I can keep these lessons throughout my lifetime.
Glad that you found the content useful. Wishing you the best
Very good useful video i
Nice info.Thanks
Glad it was helpful!
Very nicely and simply explained 👌 it's very helpful 👍
Thanks a lot 😊
Thank u so much
Very useful.
Thanks
Wonderful insights brother, really helpful
Thanks
Nice one 👍
Great info
Thanks for watching!
Sir im investing in
1. Sukanya samridhi yojna= Rs 4000 p.m
2. Aditya Birla tax 96 ELSS = Rs 1000 sip
3. Axis long term ELSS = RS 1000 SIP
4. Axis blue chip direct plan = Rs 1000 sip
5. HDFC sensex index plan direct plan= Rs 1500 sip
6. Parag Parek Flexi cap direct plan= Rs 1000 sip
7. SBI small cap= Rs 1000 sip
8. Nippon small cap= Rs 500 sip
9. DSP mid cap= rs 500 sip
10. DSP equity and bond fund = rs 500 sip
11. Icici blue chip fund = rs 500 sip
12. SBI technology fund= rs 500 sip.
I want to invest at least for 15 years.....is it ok or it is too much....please guide sir...I'm from a very small state of Meghalaya, we don't have any kind of financial awareness...I have learned a lot from you sir...please guide
Nice info sir
nice video
Awesome 👍 👏
Thanks 🤗
Good
Thank you for sharing these rules in details. I only
wish if ETMONEY start supporting for NRI.
Brilliant information... should be taught in school so that the generation spend wisely and in turn help our economy
Right and invest proper too you know that would help boost our economy
Thinks for nice information, sir ji क्या एक सरकारी कर्मचारी सीधे स्टॉक्स मैं निवेश कर सकता हैं ?
Bullet points of personal finance of life time experiences. Well put information.
What are you into sir?
Just curious really 😊
Excellent & new information to me. Very helpful
What will you do now
??
Just curious
Amazing information at one glance.
#bongginnirsongsar
Just subscribed to your channel.
Great. Welcome aboard