{"id":10864,"date":"2025-09-07T04:35:34","date_gmt":"2025-09-07T04:35:34","guid":{"rendered":"https:\/\/tezgyan.com\/index.php\/2025\/09\/07\/from-rule-of-72-to-20x-life-insurance-9-must-know-money-rules-for-financial-security-savings-and-investments-news\/"},"modified":"2025-09-07T04:35:34","modified_gmt":"2025-09-07T04:35:34","slug":"from-rule-of-72-to-20x-life-insurance-9-must-know-money-rules-for-financial-security-savings-and-investments-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/09\/07\/from-rule-of-72-to-20x-life-insurance-9-must-know-money-rules-for-financial-security-savings-and-investments-news\/","title":{"rendered":"From Rule Of 72 To 20X Life Insurance: 9 Must-Know Money Rules For Financial Security | Savings and Investments News"},"content":{"rendered":"


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Last Updated:<\/span>

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.<\/h2>\n
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Finance Expert\u2019s Viral Thread Lists 9 Must-Know Rules for Wealth & Security<\/p>\n<\/figure>\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 <\/span>Mandhan<\/span>, 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.<\/span><\/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. <\/span><\/p>\n

1 ) Rule of 72 in finance<\/span><\/strong><\/p>\n

No. of yrs required to double your money at a given rate, you just divide 72 by interest rate<\/span><\/p>\n

E.g<\/span>., 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. <\/span><\/p>\n

At 6% rate, it will take 12 years. <\/span><\/p>\n

At 9% rate, it will take 8 years.<\/span><\/p>\n

2) Rule of 70 for inflation<\/span><\/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.<\/span><\/p>\n

Inflation rate of 7% will reduce the value of your money to half in 10 years.<\/span><\/p>\n

3) 4.1% Rule for Financial Freedom<\/span><\/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.<\/span><\/p>\n

4) 100 minus your age rule<\/span><\/strong><\/p>\n

This rule is used for asset allocation.<\/span><\/p>\n

Subtract your age from 100 to find out, how much of your portfolio should be allocated to equities<\/span><\/p>\n

Age is 30 so (100 \u2013 30 = 70)<\/span><\/p>\n

Equity : 70%<\/span><\/p>\n

Debt : 30%<\/span><\/p>\n

Age is 60 so (100 \u2013 60 = 40)<\/span><\/p>\n

Equity : 40%<\/span><\/p>\n

Debt : 60%<\/span><\/p>\n

5) 10-5-3 Rule<\/span><\/strong><\/p>\n

One should have reasonable returns expectations<\/span><\/p>\n

10<\/span>\u2105<\/span> Rate of return \u2013 Equity \/ Mutual Funds<\/span><\/p>\n

5<\/span>\u2105<\/span> \u2013 Debts ( Fixed Deposits or Other Debt instruments)<\/span><\/p>\n

3<\/span>\u2105<\/span> \u2013 Savings Account<\/span><\/p>\n

6) 50-30-20 Rule \u2013 about allocation of income to expense<\/span><\/strong><\/p>\n

Divide your income into<\/span><\/p>\n

50<\/span>\u2105<\/span> \u2013 Needs (Groceries, rent, <\/span>emi<\/span>, <\/span>etc<\/span>)<\/span><\/p>\n

30<\/span>\u2105<\/span> \u2013 Wants (Entertainment, vacations, <\/span>etc<\/span>)<\/span><\/p>\n

20<\/span>\u2105<\/span> \u2013 Savings (Equity, MFs, Debt, FD, <\/span>etc<\/span>)<\/span><\/p>\n

At least try to save 20<\/span>\u2105<\/span> of your income.<\/span><\/p>\n

7) 3X Emergency Rule<\/span><\/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.<\/span><\/p>\n

3 X Monthly Income<\/span><\/p>\n

In fact, one can have around 6 X Monthly Income in liquid or near liquid assets to be on a safer side<\/span><\/p>\n

8) 40<\/span>\u2105<\/span> EMI Rule<\/span><\/strong><\/p>\n

Never go beyond 40<\/span>\u2105<\/span> of your income into EMIs.<\/span><\/p>\n

Say you earn, 50,000 per month. So you should not have EMIs more than 20,000 .<\/span><\/p>\n

This Rule is generally used by Finance companies to provide loans.<\/span><\/p>\n

You can use it to manage your finances.<\/span><\/p>\n

9) Life Insurance Rule<\/span><\/strong><\/p>\n

Always have Sum Assured as 20 times of your Annual Income<\/span><\/p>\n

20 X Annual Income<\/span><\/p>\n

Say you earn 5 Lacs annually, U should <\/span>atleast<\/span> have 1 crore insurance by following this Rule.<\/span><\/p>\n

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Varun Yadav<\/a><\/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<\/span><\/p>\n<\/div>\n<\/div>\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<\/span><\/p>\n<\/div>\n<\/div>\n

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First Published:<\/span><\/p>\n
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September 07, 2025, 09:04 IST<\/p>\n<\/div>\n<\/div>\n

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Last Updated:September 07, 2025, 09:04 IST 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. Finance Expert\u2019s Viral Thread Lists 9 Must-Know Rules for Wealth & Security An investing and market expert\u2019s X post suggesting…<\/p>\n","protected":false},"author":1,"featured_media":10865,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[],"class_list":["post-10864","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/10864","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/comments?post=10864"}],"version-history":[{"count":0,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/10864\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media\/10865"}],"wp:attachment":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media?parent=10864"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/categories?post=10864"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/tags?post=10864"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}