Archive · 12 Jun 2025
Finance Experts Share Key Rules for Smart Financial Planning
There are a few simple rules to help you manage your money.
The Rule of 72 helps you figure out how long it takes for your money to double.
The "100 Minus Age" rule suggests how much of your money should be in stocks based on your age.
The 40% EMI rule says that your monthly loan payments shouldn't be more than 40% of your income.
The Rule of 70 tells you how quickly inflation reduces the value of your money.
Finally, the Rule of 144 tells you how long it takes to quadruple your investment.
The Rule of 72 helps estimate how long an investment will take to double.
The "100 Minus Age" rule suggests an equity allocation based on age.
The 40% EMI Rule recommends that total EMI payments should not exceed 40% of monthly income.
The Rule of 70 shows how quickly inflation halves purchasing power.
The Rule of 144 estimates how long it takes for an investment to quadruple.
- Who
- Finance professionals and retail investors.
- What
- Five financial rules to simplify financial planning and investment.
- When
- Rules are relevant given cooling inflation and changing investment landscape.
- Where
- N/A
- Why
- To help investors grow investments, manage debt and beat inflation.
- Rule of 72
- Divide 72 by the annual return rate to estimate doubling time
- "100 Minus Age" Rule
- Hold Equities = 100 - your age (%)
- 40% EMI Rule
- Total EMI should not exceed 40% of net monthly income
- Rule of 70
- Estimate time for inflation to halve purchasing power (70 / inflation rate)
- Rule of 144
- Divide 144 by the annual yield to estimate when investment quadruples