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<\/p>\nLast Updated:September 07, 2025, 09:04 IST<\/p>\n
Viral X post shares 9 key personal finance rules like Rule of 72, Rule of 70, 4.1 percent withdrawal, 6x emergency fund, and 20x life insurance for financial security.<\/p>\n
Finance Expert\u2019s Viral Thread Lists 9 Must-Know Rules for Wealth & Security<\/p>\n
An investing and market expert\u2019s X post suggesting 9 rules that we all must know has gone viral, bringing a lot of attention and debate on the matter. AK Mandhan, investing finance expert, in his X thread shared 9 personal finance rules with explanation, including rule of 72, rule of 70, 4.1% withdrawal rule, 6x emergency rule, life insurance rule 20x and more.<\/p>\n
These rules will help you measure your current finances and adjust them accordingly, so you won\u2019t lag too far. Financial security is a key cornerstone in an individual\u2019s life, protecting against untoward incidents like medical emergencies and giving peace of mind. <\/p>\n
1 ) Rule of 72 in finance<\/strong><\/p>\n No. of yrs required to double your money at a given rate, you just divide 72 by interest rate<\/p>\n E.g., if you want to know how long it will take to double your money at 8% interest, divide 72 by 8 and you will get 9 years. <\/p>\n At 6% rate, it will take 12 years. <\/p>\n At 9% rate, it will take 8 years.<\/p>\n 2) Rule of 70 for inflation<\/strong><\/p>\n Divide 70 by current inflation rate to know how fast the value of your investment will get reduced to half its present value.<\/p>\n Inflation rate of 7% will reduce the value of your money to half in 10 years.<\/p>\n 3) 4.1% Rule for Financial Freedom<\/strong><\/p>\n To achieve financial independence, build a corpus equal to 25 times your annual expenses. For example, if yearly expenses are Rs 5 lakh, the required corpus is Rs 1.25 crore. Invest half in equity and half in fixed income, and withdraw 4% annually.<\/p>\n 4) 100 minus your age rule<\/strong><\/p>\n This rule is used for asset allocation.<\/p>\n Subtract your age from 100 to find out, how much of your portfolio should be allocated to equities<\/p>\n Age is 30 so (100 \u2013 30 = 70)<\/p>\n Equity : 70%<\/p>\n Debt : 30%<\/p>\n Age is 60 so (100 \u2013 60 = 40)<\/p>\n Equity : 40%<\/p>\n Debt : 60%<\/p>\n 5) 10-5-3 Rule<\/strong><\/p>\n One should have reasonable returns expectations<\/p>\n 10\u2105 Rate of return \u2013 Equity \/ Mutual Funds<\/p>\n 5\u2105 \u2013 Debts ( Fixed Deposits or Other Debt instruments)<\/p>\n 3\u2105 \u2013 Savings Account<\/p>\n 6) 50-30-20 Rule \u2013 about allocation of income to expense<\/strong><\/p>\n Divide your income into<\/p>\n 50\u2105 \u2013 Needs (Groceries, rent, emi, etc)<\/p>\n 30\u2105 \u2013 Wants (Entertainment, vacations, etc)<\/p>\n 20\u2105 \u2013 Savings (Equity, MFs, Debt, FD, etc)<\/p>\n At least try to save 20\u2105 of your income.<\/p>\n 7) 3X Emergency Rule<\/strong><\/p>\n Always put at least 3 times your monthly income in Emergency funds for emergencies such as Loss of employment, medical emergency, etc.<\/p>\n 3 X Monthly Income<\/p>\n In fact, one can have around 6 X Monthly Income in liquid or near liquid assets to be on a safer side<\/p>\n 8) 40\u2105 EMI Rule<\/strong><\/p>\n Never go beyond 40\u2105 of your income into EMIs.<\/p>\n Say you earn, 50,000 per month. So you should not have EMIs more than 20,000 .<\/p>\n This Rule is generally used by Finance companies to provide loans.<\/p>\n You can use it to manage your finances.<\/p>\n 9) Life Insurance Rule<\/strong><\/p>\n Always have Sum Assured as 20 times of your Annual Income<\/p>\n 20 X Annual Income<\/p>\n Say you earn 5 Lacs annually, U should atleast have 1 crore insurance by following this Rule.<\/p>\n Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More<\/p>\n Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More<\/p>\n Click here<\/a> to add News18 as your preferred news source on Google, Stay updated with all the latest business news, including\u00a0market trends<\/a>,\u00a0stock updates<\/a>,\u00a0tax<\/a>, IPO,\u00a0banking finance<\/a>, real estate, savings and investments. Get in-depth analysis, expert opinions, and real-time updates. Also Download the\u00a0News18 App<\/a>\u00a0to stay updated!<\/p>\n First Published:<\/p>\n September 07, 2025, 09:04 IST<\/p>\n Disclaimer: Comments reflect users\u2019 views, not News18\u2019s. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use<\/a> and Privacy Policy<\/a>.<\/p>\n Read More<\/p>\n","protected":false},"excerpt":{"rendered":"Last Updated:September 07, 2025, 09:04 IST Viral X post shares 9 key personal finance rules like Rule of…\n","protected":false},"author":2,"featured_media":405039,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3093],"tags":[139626,118689,51,32602,474,7123,139623,2499,139622,139625,139624,16,15],"class_list":{"0":"post-405038","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-4-percent-withdrawal-rule","9":"tag-asset-allocation","10":"tag-business","11":"tag-emergency-fund","12":"tag-finance","13":"tag-financial-planning","14":"tag-investing-rules","15":"tag-personal-finance","16":"tag-personal-finance-rules","17":"tag-rule-of-70","18":"tag-rule-of-72","19":"tag-uk","20":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115162633254557939","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/405038","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=405038"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/405038\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/405039"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=405038"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=405038"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=405038"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"authorimg\"](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/09\/WhatsApp-Image-2025-02-11-at-14.38.33-2025-02-47cdd4fd31681cc3efe5087cb8bd1418.jpeg\")
Varun Yadav<\/a><\/p>\n