1) Rule of 72: Its a very simple rule using which one can find out the time in which his/her money will double itself, provided the rate of interest is known. It works on the principle that the time required will be 72 divided by the rate of interest offered. Example: If R= 12%, T= 72/12= 6 years.
2) Rule of 114: It is similar to the rule of 72, the only difference being here we get the time for the money to triple itself on dividing 114 by the interest rate. Example: If R= 12%, T= 114/12= 9.5 years.
3) Rule of 144: This is also similar to the above rules and gives the time span required for the money to be quadrupled on dividing 144 by the rate of interest. Example: If R= 12%, T= 144/12= 12 years.
4) Rule of 70: Alongwith time for increment of money, one need to know the time for decrement of money. According to rule of 70, the money will decline to its half in a time period of 70 divided by the present inflation rate. Example: If the inflation rate is 10%, then after 70/10= 7 years, the amount will get halved.
5) Rule of 10, 5 and 3: According to this rule, one can expect the rate of returns for equities, bonds and cash and cash equivalent instruments to be 10%, 5% and 3% respectively.
6) Pay yourself first rule: Its said that for a safe and secured future, 10% of salary should be kept separately for oneself.
7) 100 minus your age rule: A very simple way to decide on the percentage of equity investment is to invest 100 minus your age into equities to maintain the diversification.
8) The emergency fund rule: It may happen that you may need some amount of money urgently and so its better to be prepared for such cases by investing in a liquid savings account for 3-6 months.
9) 4% withdrawal rule: In order to keep the principal untouched, this rule says to withdraw only 4% during withdrawal.