These MONEY rules will keep you Financially SECURE! | Ankur Warikoo Hindi

Summary

This video script outlines various financial rules for Indians to follow when making significant purchases such as cars, phones, groceries, and planning for investments, education loans, emergency funds, personal loans, retirement, and vacations. It emphasizes the importance of budgeting and financial planning with rules like 35-15 for car loans, 26-10 for phone purchases, 10-5-3 for grocery spending, the 100-x rule for investments, 51-10 for education loans, 3-6-9 for emergency funds, 51-25 for personal loans, 20-160 for retirement planning, and 25-3 for domestic vacations, ensuring viewers can make informed decisions and avoid financial pitfalls.

Takeaways

• 🚗 Car Purchase Rule: In India, for any car purchase, a down payment of at least 30% of the on-road price is required, with a maximum loan tenure of 5 years and an EMI that should not exceed 15% of your monthly salary.
• 📱 Phone Purchase Rule: The cost of a phone should not exceed twice your monthly income, and if you take an EMI, it should be zero-cost and not exceed 6 months, with the EMI not exceeding 10% of your monthly salary.
• 🛒 Grocery Purchase Rule: Allocate approximately 10% of your total monthly income for groceries, adjusting this percentage based on the number of family members.
• 💰 100 - X Rule for Investment: Invest at least X% of your total income in safe instruments, where X is your age, and consider a mix of fixed deposits, mutual funds, and other predictable income streams.
• 🎓 Education Loan Rule: The cost of an education loan should not exceed five times the annual fees, including living expenses, and the EMI should not be more than 15% of your expected future income from the course.
• 💡 Emergency Fund Rule: Maintain an emergency fund equivalent to at least 3 to 9 months of necessary expenses, depending on your employment stability and job risk.
• 🏠 Personal Loan Rule: Personal loans should be considered carefully and only taken for significant needs, with the interest rate not exceeding 15% and total debt not exceeding 25% of your total income.
• 👴 Retirement Planning Rule: Save at least 20% of your annual income towards retirement and aim for a retirement corpus that is at least 10 times your total annual income.
• 🏡 Domestic Vacation Rule: The cost of a domestic vacation should not exceed twice your monthly salary, and you should save and invest at least 5% of your annual income towards vacations.
• 🌍 International Vacation Rule: The cost of an international vacation should not exceed five times your monthly income, and you should save towards such vacations, taking one per year if possible.
• 🏍 Two-Wheeler Purchase Rule: For purchasing a two-wheeler, a down payment of at least 20% of the on-road price is recommended, with a maximum loan tenure of 3 years and an EMI not exceeding 10% of your monthly income.

Q & A

What is the minimum down payment required for buying a car in India according to the script?

The minimum down payment required for buying a car in India is at least 30% of the on-road price of the car.

What is the maximum loan tenure for purchasing a car in India as mentioned in the script?

The maximum loan tenure for purchasing a car in India is up to 5 years.

What should be the EMI of a car loan in relation to one's monthly salary as per the script?

The EMI for a car loan should ideally be within 15% of one's monthly salary.

What is the rule for buying a phone in India in terms of its cost relative to the buyer's monthly income?

The cost of the phone should not exceed two times the buyer's monthly income.

What is the zero-interest EMI tenure for buying a phone in India as per the script?

The zero-interest EMI tenure for buying a phone in India should not exceed 6 months.

How much of one's monthly salary should the EMI for a phone not exceed according to the script?

The EMI for a phone should not exceed 10% of one's monthly salary.

What is the rule for grocery shopping in India in terms of monthly income percentage?

For grocery shopping in India, one should spend approximately 10% of their single or total monthly income.

What is the 100-x rule for investment as mentioned in the script?

The 100-x rule for investment suggests that one should invest x% of their total income in safe instruments, where x is the individual's age.

What is the maximum EMI for an education loan in relation to one's future income from the course?

The maximum EMI for an education loan should not exceed 15% of one's future income from the course.

According to the script, what should be the minimum emergency fund for a salaried individual in India?

A salaried individual in India should have a minimum emergency fund equivalent to 3 months of their monthly expenses.

What is the 3:69 rule for emergency funds according to the script?

The 3:69 rule for emergency funds suggests that the emergency fund should cover at least 3 months of expenses for a stable salary earner and up to 6 months for self-employed or freelancers.

What is the maximum interest rate for a personal loan in India as per the script?

The maximum interest rate for a personal loan in India should not exceed 15%.

What is the 20-160 rule for retirement planning in India according to the script?

The 20-160 rule for retirement planning in India suggests that one should save at least 20% of their annual income towards retirement and the total retirement corpus should be at least 10 times their annual income.

What is the maximum cost of a domestic vacation in India in relation to one's monthly salary as per the script?

The maximum cost of a domestic vacation in India should not exceed twice the individual's monthly salary.

What is the 6:51 rule for international vacations in India according to the script?

The 6:51 rule for international vacations in India suggests that the cost of the vacation should not exceed six times the individual's monthly income.

What is the minimum down payment required for buying a two-wheeler in India as per the script?

The minimum down payment required for buying a two-wheeler in India is at least 20% of the on-road price.

What are the three conditions for buying a two-wheeler in India according to the script?

The three conditions for buying a two-wheeler in India are: a minimum down payment of 20%, a maximum loan tenure of 3 years, and the EMI should not exceed 10% of one's monthly income.