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Tezzbuzz Desk: Everyone wants their earnings to increase and their future to be financially secure. For this, it is not enough to earn more, but it is also important to invest the earned money in the right place and with the right strategy. Before investing money in stock market, mutual funds, debt funds and other investment options, you should understand your need, age and risk appetite. Some popular investing rules can help you in financial planning.

rule of 72 This is one of the most discussed rules to investment. It is used to estimate the approximate time it will take for an investment to double. For this, 72 is divided by the estimated annual return. For example, if an investment is expected to yield approximately 12 percent annual return, then dividing 72 by 12 comes to 6. That means, as an estimate, the amount may double in about six years. This is just an estimate, actual returns and timing may vary.rule of 114 Similarly helps in estimating tripling of investment. In this, 114 is divided by the estimated annual return. If the return is 12 percent then 114/12 = 9.5 years. That means the investment can be estimated to triple in approximately nine and a half years.

rule of 144 It is estimated to be four times the amount. In case of 12 per cent expected annual return, dividing 144 by 12 is 12 years. That is, according to this estimate the investment can quadruple in about 12 years. Here also it is important to keep in mind that returns are not fixed in market based investments. For money management 50-30-20 rule Is also quite popular. According to this, about 50 percent of your income can be kept on essential expenses, 30 percent on desires and lifestyle expenses and 20 percent for savings or investment. However, every person can change it according to his income and circumstances.

10 percent investment rule According to this, one should develop the habit of investing at least 10 percent of the income for the long term. The investment amount can also be increased as income increases over time. Regular investing can help build wealth in the long run.100 minus edge rule Under this, a traditional method of deciding the proportion of investment in equity based on age is described. In this the age of the investor is subtracted from 100. For example, at the age of 30 this ratio becomes 70 percent. However, this is not a hard and fast rule. Before investing it is important to keep in mind the risk appetite, income, goals and existing assets.

at last emergency fund Should not be ignored. Before investing, it is better to keep such amount aside so that expenses can be met in case of sudden job loss, illness or any other emergency. Generally, it is advisable to have an emergency fund equal to six months of essential expenses. The purpose of these rules is not to guarantee fixed profits on any investment. Regular savings, diversification, risk assessment and a long-term perspective are important in proper financial planning. Before investing, the decision should be taken according to your need and risk appetite.