Financial Planning Thumb Rules
1) How much insurance should I have?
Sum Assured should be 8-10 times of one's yearly income.
One can buy term plan. For 50lakh insurance. Need to pay yearly 5k -7k yearly.

2) How big should my house be?
The value of house should be equal to 2-3 times of your family's income.
Example:-
If u and ur spouse earning Rs 20 lakh, you could buy house in range of 40-60lakh.

3) What is maximum EMI that I can service?
Ideally 0 will be best answer but somd big assets like home require loan to buy it.
Experts agree that ur EMI should not be more than 36% of ur gross monthly income.

4) Thumb Rules for buying a Car 🚗
 a) Value of car should not be more than 50% of the annual income.
b) Purchase a used car or buy new car... then use it for10 years.
c) while buying car stick to 20/4/10 rule...ie minimum down payment of 20%. A loan tenure of not more 4 years and the EMI should not be higher than 10% of ur income.

5) What should be my assets allocations or how much equity should I have?
"Equity Investment = 100 -Your Age"

6) How much should my emergency fund contain?
- 6 months salary if u are in private sector.
- 3 months salary if u are in gov job.
- 1year salary if u are retired.

7) How much money will I need for a comfortable retired life?
- 20 times of your annual income saved for your retirement years. Your aim should be receive at least 80% of the income that u were earnings just prior to retirement.

8) How much do I need to invest every month to achieve my retirement gosls?
- If you are planning early retirement then 20% of your income. If not then 10% of ur income.
Considering u are going to retire at 60 of ur age.