Building wealth can feel like rocket science—full of jargon, graphs, and endless advice. But what if the secret is just a handful of simple rules anyone can follow? Chartered Accountant Abhishek Walia recently took to LinkedIn to break it down in plain numbers. From knowing how long your money takes to double, to figuring out how much life insurance you actually need—his 7 thumb rules are like cheat codes for financial freedom.
Walia explains that wealth-building isn’t about complicated strategies but clarity and discipline. “You don’t need to be a finance pro. You just need to remember a handful of numbers: 72, 4, 10×, 3×,” he wrote. These numbers, he says, can shape smarter money habits that hold up even when the market is full of noise.
So, what are these rules exactly? Here’s the breakdown:
Rul e of 72:
Want to know how long it takes for your money to double? Just divide 72 by your interest rate.
4% Withdrawal Rule
Save 25× your annual expenses and withdraw only 4% yearly—you’re retirement-ready.
50-30-20 Rule
Budgeting simplified—50% for essentials, 30% for wants, and 20% for savings.
100 – Your Age Rule
That’s the percentage of equity you should ideally hold in your portfolio.
40% EMI Rule
Loans should never eat up more than 40% of your income.
10× Insurance Rule
Your life cover should be at least 10 times your annual income.
3× Emergency Fund
Always keep three times your monthly expenses aside—because life never goes as planned.
Walia admits that these thumb rules aren’t revolutionary, but they work. They provide clarity and discipline, especially when market noise threatens to cause distractions.
In a previous tweet, CA Nitin Kaushik shared a few financial reality checks that hit hard. He mentioned that a single medical emergency can drain years of savings, a job loss can turn a “chill lifestyle” into survival mode, and a market crash can wipe out wealth overnight. Add family responsibilities, and the picture gets even tougher. His takeaway is clear: real security isn’t about luxury brands or weekend trips. It’s about having health insurance, an emergency fund, diversified investments, and multiple income streams—so one unexpected disaster doesn’t shatter your financial stability.
Walia explains that wealth-building isn’t about complicated strategies but clarity and discipline. “You don’t need to be a finance pro. You just need to remember a handful of numbers: 72, 4, 10×, 3×,” he wrote. These numbers, he says, can shape smarter money habits that hold up even when the market is full of noise.
So, what are these rules exactly? Here’s the breakdown:
Rul e of 72:
Want to know how long it takes for your money to double? Just divide 72 by your interest rate.
4% Withdrawal Rule
Save 25× your annual expenses and withdraw only 4% yearly—you’re retirement-ready.
50-30-20 Rule
Budgeting simplified—50% for essentials, 30% for wants, and 20% for savings.
100 – Your Age Rule
That’s the percentage of equity you should ideally hold in your portfolio.
40% EMI Rule
Loans should never eat up more than 40% of your income.
10× Insurance Rule
Your life cover should be at least 10 times your annual income.
3× Emergency Fund
Always keep three times your monthly expenses aside—because life never goes as planned.
Walia admits that these thumb rules aren’t revolutionary, but they work. They provide clarity and discipline, especially when market noise threatens to cause distractions.
In a previous tweet, CA Nitin Kaushik shared a few financial reality checks that hit hard. He mentioned that a single medical emergency can drain years of savings, a job loss can turn a “chill lifestyle” into survival mode, and a market crash can wipe out wealth overnight. Add family responsibilities, and the picture gets even tougher. His takeaway is clear: real security isn’t about luxury brands or weekend trips. It’s about having health insurance, an emergency fund, diversified investments, and multiple income streams—so one unexpected disaster doesn’t shatter your financial stability.
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