##### AGM Enterprises (5)

Established in 2010, we AGM Enterprises deal in SAC cleaning products. We source our products from the best in the industry to optimize client’s satisfaction.

- Rule of 72 (Double Your Money)

- Rule of 114 (triple Your Money)

- Rule of 144 (quadruple Your Money)

- Rule of 70 (Inflation)

- 4% Withdrawal Rule

- 100 Minus Age Rule

- 10, 5, 3 Rule

- 50-30-20 Rule

- 3X Emergency Rule

- 40℅ EMI Rule

- Life Insurance Rule

- Do you consider yourself wealthy?

- Pay yourself first rule

**Rule of 72**

No. of years required to double your money at a given rate, you just divide 72 by interest rate

Eg, if you want to know how long it will take to double your money at 8% interest, divide 72 by 8 and get 9 years

At 6% rate, it will take 12 yrs

At 9% rate, it will take 8 yrs

**Rule of 114 (triple)**

Use this to estimate how long it will take to
triple your money. It works the same way as the rule of 72. Divide 114 by
interest rate to know in how many years $10,000 will become $30,000

**Rule of 144 (quadruple)**

Similarly, this tells you in how much time your
investment will quadruple in value. For instance, if interest rate is 12%, $10,000
becomes $40,000 in 12 years

These rules provide only a rough idea. The
actual amount after compounding may vary

**Rule of 70**

Divide 70 by the current inflation rate to know how fast the value of your investment will get reduced to half its present value.

The inflation rate of 7% will reduce the value of your money to half in 10 years.

**4% Rule for
Financial Freedom**

** **Corpus Reqd = 25 times of your estimated Annual Expenses.

Eg- if your annual expense after 50 years of age is $30,000 and you wish to take VRS then the corpus with you required is $0.75 million.

Put 50% of this into fixed income & 50% into equity.

Withdraw 4% every yr, i.e. $30,000.

This rule works for 96% of the time in 30 year period

**100 minus your age
rule**

This rule is used for asset allocation. Subtract your age
from 100 to find out, how much of your portfolio should be allocated to
equities

Suppose your Age is 30 so (100 - 30 = 70)

Equity : 70%

Debt: 30%

Debt: 60%

**10-5-3 Rule**

10℅ Rate of return - Equity / Mutual Funds

5℅ - Debts ( Fixed Deposits or Other Debt instruments)

3℅ - Savings Account

**50-30-20 Rule**
- about the allocation of income to expense

Divide your income into

50℅ - Needs (Groceries, rent, EMI, etc)

30℅ - Wants (Entertainment, vacations, etc)

20℅ - Savings (Equity, MFs, Debt, FD, etc)

At least try to save 20℅ of your income.

You can definitely save more

**3X Emergency Rule**

Always put at least 3 times your monthly income in
Emergency funds for emergencies such as loss of employment, medical emergency,
etc.

3 X Monthly Income

In fact, one can have around 6 X Monthly Income in liquid or near liquid assets to be on a safer side

**40℅ EMI Rule**

** **Never go beyond 40℅ of your income into EMIs.

Say you earn, $15,000 per month. So you should not have EMIs of more than $6,000.

This Rule is generally used by Finance companies to provide loans. You can use it to manage your finances.

**Life Insurance
Rule**

Always have Sum Assured as 20 times of your Annual Income

20 X Annual Income

Say you earn $150,000 annually, you should at least have $3 million insurance by following this Rule

**DO YOU CONSIDER YOURSELF
WEALTHY?**

A rule-of-thumb formula used by Thomas J Stanley
& William D Danko in ‘The Millionaire Next Door, a book that studies
self-made American millionaires can help determine if you are one

(Age x pre-tax income) / 10 = net worth

The logic behind the formula is that the older
you are and the more money you make, the more net worth you should have.
Dividing by 10 is a rule-of-thumb that fits American conditions. So if...

**Pay yourself first rule**

Right from your first salary, put away a little
for your retirement. Experts say 10% of your income should go into this. It is
important to increase the amount as your income rises over the years

If every month you invest 100$ in a plan that
grows 8.5% annually and increase your investment by 10% every year, after 30
years you will have $0.5 million

These rules are equally useful for young, youth, and old.
Hope you will find them simple, useful, and handy.

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