Career is your biggest asset, but not the only one. Understanding the ever-changing dynamics of the stock market, real estate and commodities (gold and silver) requires more time and expertise than most people busy building their careers have.

There are financial planners and online guides to help make intelligent investment choices.

There are also some financial rules of thumb that are evergreen. If combined with good investments, these rules will keep you on a financially secure.

How much should I save for retirement?

Financial Rule of Thumb: Save 15% of your income.

Analysis: This is a good rule of thumb, as 15% is the amount one would need to save over the course of their life to have an equivalent lifestyle during retirement. But then again, if you’re reading a personal finance blog, you’re probably not typical. While 15% is good to aim for, if you want to retire early or you’re starting late, you’re going to need to bump this. I’d prefer someone to use Personal Capital’s Retirement Calculator and play around with different saving rates. Many will be surprised at how much quicker they’ll reach financial independence by bumping this up just a few percentage points. Or, how much they must save if they started late?

Rule of 72 (double)
This tells you in how much time your money will double. Divide 72 by the interest rate at which you are compounding your money, and you will arrive at the number of years it will take to double in value

Rule of 114 (triple)
Use this to estimate how long it will take to triple your money. It works the same way as the rule of 72. Divide 114 by interest rate to know in how many years 10,000 will become 30,000

Rule of 144 (quadruple)
Similarly, this tells you in how much time your investment will quadruple in value. For instance, if interest rate is 12%, 10,000 becomes 40,000 in 12 years

Rule of 70
This is a useful rule for predicting your future buying power. Divide 70 by current inflation rate to know how fast the value of your investment will get reduced to half its present value. This is especially useful for retirement planning, as it affects the way you set up your monthly withdrawals. However, do remember that inflation rate varies from time to time

The 10, 5, 3 rule
This is a neat little rule that states that you can expect returns of 10% from equities, 5% from bonds and 3% on liquid cash and cash-like accounts

100 minus your age rule
This rule is used for asset allocation. Subtract your age from 100 to find how much of your portfolio should be allocated to equities

Age 30
Equity : 70%
Debt: 30%

Age 60
Equity : 40%
Debt : 60%

The emergency fund rule
Put away at least 3-6 months’ worth of expenses in a liquid savings account to ensure it is available at short notice

The other important rules for a financially free life are-

Pay yourself first rule
Right from your first salary, put away a little for your retirement. Experts say 10% of your income should go into this. It is important to increase the amount as your income rises over the years

If every month you invest Rs 5,000 in a plan that grows 8.5% annually and increase your investment by 10% every year, after 30 years you will have Rs 2.5 crore

4% withdrawal rule
How much should you withdraw after retire ..

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