Dynamic Personal Finance Rules Calculator

Rule 1: Interest rate rules

Short text: Interest Rate Rules

Description: Guidelines for understanding the power of compounding and the impact of interest.

• Rule of 72 (time to double money): N/A Years
• Rule of 114 (time to triple money): N/A Years
• Rule of 144 (time to quadruple money): N/A Years
• Rule of 160 (time to 5X money approx): N/A Years
• Rule of 240 (time to 10X money approx): N/A Years

Rule 2: 100 - your age

Short text: Equity Investment Ratio

Description: i.e. your age 25. the you can invest 75% in equity from your total investment.

Amount/Years: N/A% in Equity

(Calculated: 100 - Your Age)

Rule 3: Inflation rate

Short text: Inflation Impact Rules

Description: Rules for understanding how inflation erodes purchasing power.

• 70 / Inflation Rate (time to value half): N/A Years
• 100 / Inflation Rate (time to value zero): N/A Years

Rule 4: 7 day rule

Short text: Impulse Purchase Buffer

Description: Before buying non-essential purchase, wait for 7 days.

Amount/Years: 7 Days

Rule 5: Basic expense rule

Short text: Expense Allocation

Description: A guideline for allocating your monthly income across different spending and saving categories.

• Needs (40%): ₹N/A
• Wants (30%): ₹N/A
• Investment (40%): ₹N/A

(Calculated based on Monthly Income using 40%, 30%, 40% distribution)

Rule 6: 6 X Emergency rule

Short text: Emergency Fund Size & Allocation

Description: Monthly salary/monthly expenses * 6X should be with you.

Total Emergency Fund: ₹N/A

(Calculated: Needs Expenses * 6)

• Saving Account (30%): ₹N/A
• Fixed Deposit (30%): ₹N/A
• Liquid Mutual Fund (30%): ₹N/A
• Cash at Home (10%): ₹N/A

Rule 7: 20 X Term Life insurance rule

Short text: Life Insurance Coverage

Description: Yearly salary * 20.

Amount/Years: ₹N/A

(Calculated: Monthly Income * 12 months * 20)

Rule 8: 40% EMI rule (all kind of emi)

Short text: EMI Limit

Description: EMI on any kind of loan should be 40% of your monthly salary.

Amount/Years: Max EMI: ₹N/A

(Calculated: 40% of Monthly Income)

Rule 9: 25 X retirement plan

Short text: Retirement Corpus Goal

Description: 25 X your yearly salary/yearly expenses should be on bank a/c.

Amount/Years: ₹N/A

(Calculated: Monthly Income * 12 months * 25)

Rule 10: 1st week rule

Short text: Early Investment Habit

Description: Invest in first week of the month.

Amount/Years: 1 Week

Rule 11: 2 X car

Short text: Car Purchase Budget

Description: Do not spend more than 2 years of income on your car.

Max Car Cost: ₹N/A

(Calculated: Monthly Income * 12 months * 2)

• 20% Down Payment of Car: ₹N/A
• 4 Year Loan Tenure (Max) (per EMI till 4 years): ₹N/A/month

Rule 12: 5X of annual salary for home purchase

Short text: Home Purchase Budget & Loan Terms

Description: Guidelines for purchasing a home based on annual salary and ideal loan terms.

Max Home Cost: ₹N/A

(Calculated: Monthly Income * 12 months * 5)

• 20 Year Loan Tenure (Max)
• 30% EMI of Monthly Salary: Max EMI: ₹N/A
• 40% Down Payment (Ideal): ₹N/A
• After 40% Payment - Rest Through EMI (0.6): ₹N/A
• 3X Gross Salary Rule for Home Loan (Don’t take home loan > 3× your annual gross salary): ₹N/A
• In How Many Months Rest 60% Will Be Paid Off: N/A months
• In How Many Years Rest 60% Will Be Paid Off: N/A years
• 1% Property Maintenance Rule (Allocate 1% of property value annually for maintenance): ₹N/A
• 30% Rent Rule (in case of home rent - Your rent should not exceed 30–35% of your monthly salary): ₹N/A

Rule 13: 10% income cap on monthly car costs

Short text: Car Expense Limit

Description: Cost on car must be within 10% of your monthly income.

Amount/Years: Max Monthly Car Cost: ₹N/A

(Calculated: 10% of Monthly Income)

Rule 14: 2 X marriage

Short text: Marriage Expense Limit

Description: Do not spend more than 2 years of income on your marriage.

Amount/Years: Max Marriage Cost: ₹N/A

(Calculated: Monthly Income * 24 months)

Rule 15: 15% in gold

Short text: Gold Investment Allocation

Description: One should invest 10 to 20% of your total corpus in gold.

Rule 16: 10X Net Worth by Age 40

Short text: Net Worth Goal at 40

Description: Net worth should be at least 10× your yearly expenses by age 40.

Amount/Years: Target Net Worth: ₹N/A

(Calculated: Net Expenses * 12 months * 10)

Rule 17: Credit Utilization < 30%

Short text: Healthy Credit Usage

Description: Don’t use more than 30% of credit card limit to maintain credit score.

Amount/Years: < 30%

Rule 18: Debt Avalanche Method

Short text: Debt Repayment Strategy

Description: Pay high-interest loans first to save on interest over time.

Amount/Years: Prioritize by rate

Rule 19: 1% Annual Investment Hike

Short text: Investment Growth Adjustment

Description: Increase your investments by at least 1% each year to beat inflation.

Amount/Years: +1% yearly

Rule 20: No Loan for Depreciating Assets

Short text: Cash for Depreciating Assets

Description: Avoid EMIs for gadgets, vacations, or items that lose value.

Amount/Years: Prefer cash only

Rule 21: Credit Health Rule (3 pillars)

Short text: Credit Score Maintenance

Description: Maintain credit score by timely payment, <30% usage, and long history.

Amount/Years: Good score: 750+

Rule 22: Invest First, Spend Later Rule

Short text: Priority Savings

Description: Save/invest as soon as you get paid before spending.

Amount/Years: Automate savings

Rule 23: 10% Rule for Education Loans

Short text: Education Loan EMI Limit

Description: EMI for education loan should not exceed 10% of future income.

Amount/Years: 10% salary

Rule 24: Budget Using Zero-Based Method

Short text: Zero-Based Budgeting

Description: Assign every rupee a job (spending/saving) before the month starts.

Amount/Years: ₹0 leftover

Rule 25: 5-15-50 Rule of savings

Short text: Savings Allocation Strategy

Description: Save 5% for emergencies, 15% for short-term, 50% for long-term goals.

Amount/Years: Based on income

Rule 26: 30-Day Rule

Short text: Major Purchase Delay

Description: Wait 30 days before making any big non-essential purchase.

Amount/Years: Helps reduce impulse buying

Rule 27: 24-Hour Rule

Short text: Online Spending Delay

Description: Wait 24 hours before online spending to avoid impulsive buying.

Amount/Years: Helps curb emotional buying

Rule 28: Insurance Before Investment

Short text: Protection First

Description: Always secure health & term insurance before starting investments.

Amount/Years: Priority order

Rule 29: 1 Credit Card per 5 Years of History

Short text: Credit Card Management

Description: Maintain long credit history; avoid frequent new cards.

Amount/Years: 1 card every 5 years

Rule 30: 3-Account Budgeting Rule

Short text: Account Segmentation

Description: Use 3 accounts: Income, Expense, and Investment.

Amount/Years: Simple automation

Rule 31: Spend Bonus, Don’t Depend on It

Short text: Bonus Usage

Description: Never include bonuses/incentives in monthly budget.

Amount/Years: Use only for investments

Rule 32: Diversify Across 5 Assets

Short text: Asset Diversification

Description: Diversify across equity, debt, real estate, gold, and emergency fund.

Amount/Years: Balanced portfolio

Rule 33: 3 Financial Goals Per Year

Short text: Focused Goal Setting

Description: Focus on just 3 clear, measurable goals per year.

Amount/Years: Avoid overwhelm

Rule 34: Rebalance Portfolio Every 6 Months

Short text: Portfolio Review

Description: Check and adjust asset allocation every 6 months.

Amount/Years: January & July suggested

Rule 35: Retirement Plan Starts at 30

Short text: Early Retirement Planning

Description: Begin investing for retirement by age 30.

Amount/Years: Sooner = higher compounding

Rule 36: Kids' Education Planning at Birth

Short text: Child Education Savings

Description: Start SIPs or PPF for children’s education early.

Amount/Years: ₹3,000–₹5,000 monthly

Rule 37: Don’t Delay Tax-Saving Investments

Short text: Timely Tax Savings

Description: Invest in 80C options like ELSS, PPF before March.

Amount/Years: Plan before financial year end

Rule 38: No More Than 1 Personal Loan at a Time

Short text: Personal Loan Limit

Description: Avoid juggling multiple personal loans.

Amount/Years: 1 active personal loan max

Rule 39: Avoid Loan for Vacation

Short text: Cash for Travel

Description: Travel only if you can pay cash upfront.

Amount/Years: ₹0 debt

Rule 40: Expense Tracking Daily

Short text: Daily Spending Awareness

Description: Log all expenses every day to remain conscious.

Amount/Years: ₹ tracking = ₹ saving

Rule 41: Buy Term, Not ULIP or Endowment

Short text: Pure Term Insurance

Description: Use term insurance only; avoid expensive hybrid products.

Amount/Years: ₹1 Cr cover at low cost

Rule 42: Save First 100K Fast

Short text: Initial Savings Momentum

Description: First ₹1 lakh saved is crucial; builds habit and momentum.

Amount/Years: ₹100,000

Rule 43: 1-Year Salary for Job Switch Buffer

Short text: Career Transition Safety Net

Description: Keep 1-year's expense before switching careers/freelancing.

Amount/Years: Career safety net

Rule 44: 10-15% in International Equity

Short text: Global Equity Diversification

Description: Diversify 10-15% of investments globally.

Amount/Years: Global ETF/MF

Rule 45: Avoid Lifestyle Creep

Short text: Stable Lifestyle

Description: Don’t increase expenses with income rise.

Amount/Years: Keep lifestyle stable

Rule 46: Pay Credit Card in Full, Always

Short text: No Credit Card Debt

Description: Never revolve credit card debt.

Amount/Years: ₹0 interest

Rule 47: No Cost EMI ≠ Free

Short text: Beware "No Cost EMI"

Description: Avoid if it inflates product cost or forces unwanted spending.

Amount/Years: Pay full or skip

Rule 48: SIP for Every Major Goal

Short text: Goal-Based SIPs

Description: One SIP per goal – retirement, home, car, child education.

Amount/Years: Clear tracking

Rule 49: Check Credit Report Twice a Year

Short text: Regular Credit Check

Description: Ensure accuracy and spot frauds early.

Amount/Years: CIBIL or Experian

Rule 50: 5% Rule for Gadgets

Short text: Gadget Spending Limit

Description: Don’t spend more than 5% of annual income on gadgets.

Max Gadget Spend: ₹N/A (on ₹N/A income)

(Calculated: 5% of Annual Income)

Rule 51: Set Financial Review Day Monthly

Short text: Monthly Financial Review

Description: Review budget, SIPs, goals on fixed monthly date.

Amount/Years: 1st or last Sunday

Rule 52: Spend on Experiences, Not Just Things

Short text: Value Experiences

Description: Experiences give more lasting value than material items.

Amount/Years: Travel, skills, memories

Rule 53: 5X Rule for Bike Purchase

Short text: Bike Budget Limit

Description: Don’t spend more than 5 months of salary on a two-wheeler.

Max Bike Cost: ₹N/A

(Calculated: Monthly Income * 5)

Rule 54: 10% of Income for Bike EMI

Short text: Bike EMI Cap

Description: Bike EMI should not exceed 10% of your monthly income.

Max Bike EMI: ₹N/A

(Calculated: 10% of Monthly Income)

Rule 55: 20% Down Payment for Bike

Short text: Bike Down Payment

Description: Pay at least 20% of the bike cost as down payment.

Amount/Years: ₹N/A (20% of Bike Cost)

Rule 56: Keep Insurance in Bike Budget

Short text: Comprehensive Bike Cost

Description: Include yearly insurance & servicing while planning bike costs.

Amount/Years: ₹10k–₹15k/year

Rule 57: Farm Land Rule – Income Justified

Short text: Productive Land Investment

Description: Only buy land if it can generate minimum 4% rental/income.

Amount/Years: Income > ₹40,000 on ₹10L land

Rule 58: Buy Land within 5X Annual Salary

Short text: Land Purchase Limit

Description: Avoid buying land/farm beyond 5× annual household income.

Max Land Cost: ₹N/A

(Calculated: Monthly Income * 12 months * 5)

Rule 59: Calculate Opportunity Cost of Land

Short text: Land Investment Comparison

Description: Consider what return you’d earn by investing the money instead.

Amount/Years: Compare 10% mutual fund vs 2% land yield

Rule 60: Financial Checklist for Vehicles

Short text: Total Cost of Vehicle Ownership

Description: Budget = cost + accessories + insurance + service + resale loss.

Amount/Years: ₹Total cost ownership

Rule 61: 80% Rule for Farm Purchase

Short text: Debt-Free Farm Purchase

Description: Only go for farm/plot if you're 80% debt-free.

Amount/Years: Low debt = better ROI

Rule 62: Avoid Loans with >12% Interest

Short text: High-Interest Loan Warning