Know 10 easy rules of money management which will fulfill every need from budget, savings, investment, retirement, and emergency fund. Actually, with the right financial planning, you can eliminate the tension of money and make the future secure.

Well, the right management of money is important for everyone, whether you do a job or business. Yes, with the right planning, you can easily save your earnings, you can invest and secure the future. But the question is how to manage money wisely? Actually there are 10 easy financial rules, which can help you in managing your budget, savings, investment, retirement and emergency fund. So let's understand and know these 10 tips.

1. Make a budget using the 50-30-20 rule

This rule divides your money into three parts, basically spend 50% of your salary on essential expenses (like rent, electricity, ration), 30% on your desires (like eating out, holidays) and 20% on savings and investments (like FD, mutual funds). For example, if your salary is Rs 50,000, then spend Rs 25,000 on essential expenses, Rs 15,000 on desires and Rs 10,000 on savings.

2. Create an emergency fund

Emergency fund is your companion in difficult times. It should have at least 3-6 months of expenses, for example, if your monthly expenditure is Rs 30,000, then create a fund of Rs 90,000 to Rs 1.8 lakh. By the way, this will be useful in case of job loss or medical emergency.

3. Investment calculation using rule 72

Rule 72 tells you in how many years your money will double. Divide the interest rate of your investment by 72. For example, if your investment gives 8% interest, then your money will double in 72 ÷ 8 = 9 years. Yes, this rule helps in planning investments like mutual funds or FDs.

4. Retirement planning using 4% rule

The 4% rule is useful for expenses after retirement. Yes, according to this, you can withdraw 4% of your total savings every year, and your money will last for 30 years. For example, if you have Rs 1 crore, then you can withdraw Rs 4 lakh (about Rs 33,000 per month) every year.

5. Rule of 100 minus age

This rule tells you how much of your investment should be in the stock market and subtract your age from 100, whatever number comes out, invest that percentage of money in shares or mutual funds. For example, if you are 30 years old, then 100 - 30 = 70% money can be invested in shares and 30% in FD or bonds.

6. Repay the loan quickly

Everyone knows that any kind of loan can eat up your savings. So to avoid this, first repay the high-interest loan (like credit card). If your credit card bill is Rs 10,000 and the interest is 36% per annum, then by paying it early you can save thousands of rupees, you can make small EMIs and reduce the loan.

7. Do tax planning

Yes, to save tax, you can invest in options like PPF, ELSS mutual fund or NSC. Under Section 80C, you can get a tax exemption of up to Rs 1.5 lakh every year. With the right tax planning, your savings will increase and financial situation will be strong.

8. Do take insurance

Health and life insurance is important for the safety of your family. So if you have a term insurance of 50 lakhs, then your family will be financially safe after you. Along with this, health insurance saves from big expenses in medical emergency. So choose the right policy and pay the premium on time.

9. Divide the investment

Remember one thing that you should not invest all your money in one place. Yes, divide your investment in shares, mutual funds, FD, PPF and gold. This will reduce the risk and increase the return, for example, if there is a loss in the stock market, then FD and PPF will keep your money safe.

10. Set your goals

Always make your small and big financial goals. For example, buying a house in 5 years or retirement in 15 years. Make separate investments for each goal. So for example, do FD for home and start SIP for retirement. This will keep your planning clear.

Understand the precautions

Before adopting these rules, understand your financial situation. Invest only as much money in high-risk investments (such as shares) as you can afford to lose. Review your budget and investments every year, and if needed, consult a financial advisor.

So it is clear that these 10 easy rules will help you manage your money wisely. Make a budget, prepare an emergency fund, divide investments and plan for retirement and with a little hard work and proper planning, you can increase your income and secure the future. (Note: The news is based on general information)

5 FAQs

Q1. What is the easiest way to manage money?

Making a budget with the 50-30-20 rule is the easiest and most effective way.

Q2. How much should the emergency fund be?

At least 3–6 months of expenses should be covered in case of emergencies.

Q3. Which rule is best for retirement planning?

The 4% rule is considered to be the most reliable for retirement.

Q4. How much of the investment should be invested in the stock market?

The 100 minus age rule tells how much money should be invested in stocks.

Q5. What are the investment options to save tax?

Investment options like PPF, ELSS and NSC provide tax exemption under section 80C.