The formula estimates the amount of time it takes for an investment to double in value, earning a fixed annual rate of return.
If you earn 6% on your investment annually it will take (72/6=12) 12 years for your investment to double.
#personalfinance
10 Powerful Thumb rule of Personal Finance - Everyone Should Know ⤵️
The formula estimates the amount of time it takes for an investment to double in value, earning a fixed annual rate of return.
If you earn 6% on your investment annually it will take (72/6=12) 12 years for your investment to double.
#personalfinance
The rule is designed to help you determine the asset allocation between equity and debt. You need to subtract your age from the number 100 to get the equity allocation%
If your age is 30, equity allocation should be 70% (100-30)
This basic rule of thumb is to divide your monthly after-tax income into three spending categories:
50% for needs,
30% for wants
20% for savings or paying off debt
The whole idea behind the 35% rule is that , EMI as a percentage of your income should not exceed 35-40%
Anything above that might put a strain on your finances. In case your EMI is more than that, you should avoid taking any more loans.
#StockMarket
Save about 3-6 months of your expenses and keep it as an emergency fund.
You never know what future prevails so having a cushion to fall on is the wise choice.
You need an insurance coverage of 15-20 times of your annualized monthly expenditure.
#investing
If you are taking a loan to purchase a car, you should be able to pay 20% down payment, the loan tenure should not be more than 4years and the EMI should not be more than 10% of your monthly income.
We hardly think about retirement from a young age. However, if we start investing just 10% of our income from a young age we can save a huge corpus of money to retire.
If you save just Rs.2000 every month and it grows at 10% it sums to 1.15cr in 39 years.
One should have reasonable returns expectations
10℅ : From Equity / Mutual Funds
5℅ : From Debts ( Fixed Deposits or Other Debt instruments)
3℅ : From Savings Account
The value of a house should be equal to 2-3 times your family’s annual income. So if you & your spouse are earning a total of Rs 20 lakh, you should buy a house in a Range of Rs 40-60 Lakh.
Get a complete picture of your financial profile and actionable steps to boost your net-worth, only at https://t.co/sDoc7tenOY
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🌿𝑻𝒉𝒆 𝒔𝒕𝒐𝒓𝒚 𝒐𝒇 𝒂 𝑺𝒕𝒂𝒓 : 𝑫𝒉𝒓𝒖𝒗𝒂 & 𝑽𝒊𝒔𝒉𝒏𝒖
Once upon a time there was a Raja named Uttānapāda born of Svayambhuva Manu,1st man on earth.He had 2 beautiful wives - Suniti & Suruchi & two sons were born of them Dhruva & Uttama respectively.
#talesofkrishna https://t.co/E85MTPkF9W
Now Suniti was the daughter of a tribal chief while Suruchi was the daughter of a rich king. Hence Suruchi was always favored the most by Raja while Suniti was ignored. But while Suniti was gentle & kind hearted by nature Suruchi was venomous inside.
#KrishnaLeela
The story is of a time when ideally the eldest son of the king becomes the heir to the throne. Hence the sinhasan of the Raja belonged to Dhruva.This is why Suruchi who was the 2nd wife nourished poison in her heart for Dhruva as she knew her son will never get the throne.
One day when Dhruva was just 5 years old he went on to sit on his father's lap. Suruchi, the jealous queen, got enraged and shoved him away from Raja as she never wanted Raja to shower Dhruva with his fatherly affection.
Dhruva protested questioning his step mother "why can't i sit on my own father's lap?" A furious Suruchi berated him saying "only God can allow him that privilege. Go ask him"
Once upon a time there was a Raja named Uttānapāda born of Svayambhuva Manu,1st man on earth.He had 2 beautiful wives - Suniti & Suruchi & two sons were born of them Dhruva & Uttama respectively.
#talesofkrishna https://t.co/E85MTPkF9W
Prabhu says i reside in the heart of my bhakt.
— Right Singh (@rightwingchora) December 21, 2020
Guess the event. pic.twitter.com/yFUmbfe5KL
Now Suniti was the daughter of a tribal chief while Suruchi was the daughter of a rich king. Hence Suruchi was always favored the most by Raja while Suniti was ignored. But while Suniti was gentle & kind hearted by nature Suruchi was venomous inside.
#KrishnaLeela
The story is of a time when ideally the eldest son of the king becomes the heir to the throne. Hence the sinhasan of the Raja belonged to Dhruva.This is why Suruchi who was the 2nd wife nourished poison in her heart for Dhruva as she knew her son will never get the throne.
One day when Dhruva was just 5 years old he went on to sit on his father's lap. Suruchi, the jealous queen, got enraged and shoved him away from Raja as she never wanted Raja to shower Dhruva with his fatherly affection.
Dhruva protested questioning his step mother "why can't i sit on my own father's lap?" A furious Suruchi berated him saying "only God can allow him that privilege. Go ask him"
I’m torn on how to approach the idea of luck. I’m the first to admit that I am one of the luckiest people on the planet. To be born into a prosperous American family in 1960 with smart parents is to start life on third base. The odds against my very existence are astronomical.
I’ve always felt that the luckiest people I know had a talent for recognizing circumstances, not of their own making, that were conducive to a favorable outcome and their ability to quickly take advantage of them.
In other words, dumb luck was just that, it required no awareness on the person’s part, whereas “smart” luck involved awareness followed by action before the circumstances changed.
So, was I “lucky” to be born when I was—nothing I had any control over—and that I came of age just as huge databases and computers were advancing to the point where I could use those tools to write “What Works on Wall Street?” Absolutely.
Was I lucky to start my stock market investments near the peak of interest rates which allowed me to spend the majority of my adult life in a falling rate environment? Yup.
Ironies of Luck https://t.co/5BPWGbAxFi
— Morgan Housel (@morganhousel) March 14, 2018
"Luck is the flip side of risk. They are mirrored cousins, driven by the same thing: You are one person in a 7 billion player game, and the accidental impact of other people\u2019s actions can be more consequential than your own."
I’ve always felt that the luckiest people I know had a talent for recognizing circumstances, not of their own making, that were conducive to a favorable outcome and their ability to quickly take advantage of them.
In other words, dumb luck was just that, it required no awareness on the person’s part, whereas “smart” luck involved awareness followed by action before the circumstances changed.
So, was I “lucky” to be born when I was—nothing I had any control over—and that I came of age just as huge databases and computers were advancing to the point where I could use those tools to write “What Works on Wall Street?” Absolutely.
Was I lucky to start my stock market investments near the peak of interest rates which allowed me to spend the majority of my adult life in a falling rate environment? Yup.