{"id":993,"date":"2026-09-03T07:00:44","date_gmt":"2026-09-03T07:00:44","guid":{"rendered":"https:\/\/smartmoneymaps.com\/?p=993"},"modified":"2026-09-03T07:00:44","modified_gmt":"2026-09-03T07:00:44","slug":"top-11-financial-planning-thumb-rules-learn-with-etmoney","status":"publish","type":"post","link":"https:\/\/smartmoneymaps.com\/?p=993","title":{"rendered":"Top 11 Financial Planning Thumb Rules | Learn With ETMONEY"},"content":{"rendered":"<p><iframe loading=\"lazy\" width=\"480\" height=\"270\" src=\"\/\/www.youtube.com\/embed\/w3Y0-Keho9Y\" frameborder=\"0\" allowfullscreen><\/iframe><\/p>\n<p>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.<\/p>\n<p>What\u2019s covered in the video:<br \/>\n00:00 Introduction<br \/>\n00:30 RULE OF 72<br \/>\n01:28 RULE OF 114<br \/>\n02:39 RULE OF 70<br \/>\n03:34 10-5-3 RULE<br \/>\n04:15 100 MINUS AGE RULE<br \/>\n05:18 4% WITHDRAWAL RULE<br \/>\n06:27 50-30-20 RATIO<br \/>\n07:35 3X EMERGENCY FUND RULE<br \/>\n08:27 1 WEEK SPENDING RULE<br \/>\n09:48 40% EMI RULE<br \/>\n10:37 20X LIFE COVER RULE<\/p>\n<p>Read Article: https:\/\/www.etmoney.com\/learn\/stocks\/top-10-thumb-rules-for-investing-every-investor-should-know\/<\/p>\n<p>\ud83d\udc49 Some Must Read Books for Your Money Library<br \/>\n\ud83d\udcda Rich Dad Poor Dad : https:\/\/amzn.to\/3pJkVL1<br \/>\n\ud83d\udcda The Psychology of Money : https:\/\/amzn.to\/3FNI1Wd<br \/>\n\ud83d\udcda Learn to Earn : https:\/\/amzn.to\/3FKmKg1<br \/>\n\ud83d\udcda The Little Book That Still Beats the Market : https:\/\/amzn.to\/3HvsKtN<br \/>\n\ud83d\udcda Financial Literacy for Managers : https:\/\/amzn.to\/32JUHz0<\/p>\n<p>1. RULE OF 72<br \/>\nThe 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.<\/p>\n<p>2. RULE OF 114<br \/>\nRule of 114 gives you an estimate of how much time will it take for you to triple your money<br \/>\nFor 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<\/p>\n<p>3. RULE OF 70<br \/>\nThe rule of 70 estimates the impact of inflation on your wealth.<br \/>\nIn 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<\/p>\n<p>4. 10-5-3 RULE<br \/>\nA primal factor in our investment decisions is the expected rate of return.<br \/>\nAnd the 10-5-3 is a thumb rule that is often cited in most long term investing calculations<br \/>\nThe rule is quite simple and says that when making long term decisions expect<br \/>\n-10% annual return from equities<br \/>\n&#8211; 5% yearly return from debt instruments<br \/>\n&#8211; 3% annualized return from your savings bank account<\/p>\n<p>5. 100 MINUS AGE RULE<br \/>\nThe 100 minus age thumbrule is a simple way to program one\u2019s 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. <\/p>\n<p>6. 4% WITHDRAWAL RULE<br \/>\nThe 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.<\/p>\n<p>7. 50-30-20 RATIO<br \/>\nThe 50\/30\/20 rule of thumb is a guideline for allocating your budget accordingly: 50% to \u201cneeds,\u201d 30% to \u201cwants,\u201d and 20% to your financial goals.<\/p>\n<p>8. 3X EMERGENCY FUND RULE<br \/>\nThe 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<br \/>\nThe 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.<\/p>\n<p>9. 1 WEEK SPENDING RULE<br \/>\nThe 7 Day Rule is a great strategy to prevent impulse spending and buyers remorse. The principle is very simple. You give yourself a \u201ccooling-off period\u201d of 7 days before making purchases.<\/p>\n<p>10. 40% EMI RULE<br \/>\nThe 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.<\/p>\n<p>11. 20X LIFE COVER RULE<br \/>\nA personal finance portfolio is never complete without a life insurance policy<br \/>\nSo 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. <\/p>\n<p>#ETMONEY #financialplanning #learnwithETMONEY #thumbrules #mutualfunds<\/p>\n<p>\ud83d\udc49 To invest in Direct Plans of top Mutual Funds for free, download the ETMONEY app: https:\/\/etmoney.onelink.me\/unJQ\/5ca1ae3b\u200b <\/p>\n<p>\ud83d\udc49 Follow us on:<br \/>\n\u25ba Facebook: https:\/\/www.facebook.com\/ETMONEY\/<br \/>\n\u25ba Twitter: https:\/\/twitter.com\/etmoney<br \/>\n\u25ba Instagram: https:\/\/www.instagram.com\/etmoney_official\/<br \/>\n\u25ba LinkedIn: https:\/\/www.linkedin.com\/company\/et_money\/<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A rule of thumb refers to something which can be easily learned and easily applied to a situation. 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