📊 Master These Essential Finance Rules with SMC Global!💡 The Rule of 72: Estimate how long it will take to double your money. Divide 72 by the interest rate💡 The Rule of 70: Determine how long it takes for your investment's value to halve due to inflation💡 4% Withdrawal Rule: To determine the required corpus for retirement, calculate 25 times your estimated annual expenses💡 100 - Age Rule: Determine asset allocation by subtracting your age from 100💡 50-30-20 Rule: Divide your income responsibly:↳50% for Needs↳30% for Wants/Desires↳20% for Savings💡 3X Emergency Rule: Maintain an emergency fund of at least 3 times your monthly income💡 40% EMI Rule: Never allocate more than 40% of your income to EMIs💡 Life Insurance Rule: Ensure your Sum Assured is at least 20 times your annual income💡 Rule of 144: To determine how many years it takes to double your money through a SIP (Systematic Investment Plan), use the formula: Years to Double = 144 / Annual Rate of Return. For a 15% rate, it will take about 9.6 years.💡 Revolving Credit Formula: If a credit card company charges 3% interest per month, the Compound Annual Rate (CAR) can be calculated as (1 + 3%)^12 - 1 = 42.6%.📈 Conclusion: Being financially informed is easier than ever. Follow SMC Global for more insights and master these finance rules today👉 Disclaimer: Investments in securities are subject to market risks. Read all related documents carefully before investing. Mutual Fund📢 Follow Us for More Insights! #FinanceTips #InvestmentRules #FinancialPlanning #SMCGlobal #InvestmentInsights #PersonalFinance #MoneyManagement
Posted On: 02 Aug 2024 12:43 PM
