Nine rules to make your money work

Managing money doesn’t have to be complicated. These timeless financial thumb rules give you simple, practical ways to invest, spend, save, and protect your wealth. By following them, you can make smarter decisions, stay financially secure, and steadily build long-term prosperity.By CNBCTV18.com September 7, 2025, 3:16:08 PM IST (Published)2 Min Read1 / 10Managing money doesn’t have to be complicated. These timeless financial thumb rules give you simple, practical ways to invest, spend, save, and protect your wealth. By following them, you can make smarter decisions, stay financially secure, and steadily build long-term prosperity.2 / 101. Rule of 72 (2X Your Money): Quickly estimate how long it takes to double your money. Example: At 12% return, your money doubles in 6 years.3 / 102. Rule of 70 (Inflation Impact): Shows how fast inflation erodes purchasing power. Example: At 7% inflation, your money’s value halves in 10 years.4 / 103. 4% Withdrawal Rule (Retirement Planning): You can safely withdraw 4% of your retirement corpus yearly without outliving your savings. Example: ₹1 crore corpus – ₹4 lakh annual withdrawal.5 / 104. 100 – Age Rule (Asset Allocation): Use age to balance equity as against debt exposure. Example: At 30, keep 70% equity and 30% debt.6 / 105. 10, 5, 3 Rule (Expected Returns): Set realistic return expectations: equities 10%, debt 5%, savings 3%.7 / 106. 50-35-15 Rule (Budgeting): Allocate income wisely: 50% to needs, 35% to wants, 15% to savings or investments.8 / 107. 6X Emergency Fund Rule: Keep 6 months of expenses handy for financial security. Example: ₹50,000 monthly spend → fund of ₹3,00,000.9 / 108. 41% EMI Rule (Debt Control): Ensure EMIs don’t exceed 41% of monthly income. Example: If you earn ₹1 lakh then EMIs ≤ ₹41,000.10 / 109. Life Insurance Rule (20X Income): Take term insurance worth about 20× your annual income. Example: ₹10 lakh income – cover of ₹2 crore.Continue Reading

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