1. Stash away at least 10% of what you earn- This may well be one of the most important rules to stick to. The famous book on money-saving tips, The Richest Man in Babylon by George S. Clayson additionally makes reference to this. The way to fabricate riches for your future is to spare 10 percent of your pay.
2. Stash away at least 3-6 months worth of monthly expenses as an emergency fund The idea is to keep away 3-6 months worth of total monthly expenses in an emergency fund account. This should standard costs, EMIs and protection premiums.
3. Keep equity investments in your portfolio While investing, it is fitting to isolate one’s investments into debt and equity. This guideline proposes that the percentage of value in your portfolio ought to be 100 subtracted from your age. So when you are 30, the value segment of your portfolio ought to be 70 percent.
4. Make sure there is a balance between your EMIs and your income The general guidelines express that EMIs as a level of your pay ought not to surpass 35-40 percent. Anything over that may strain your finances.
5. You may need 80% of your current income after retirement- General rules say that 80 percent of your present total costs will be the total after your retirement. This assumption is based on the fact that some expenditures may go down after retirement.