Rules of Wealth Creation-1 1) *Rule of 72* No. of yrs required to double your money at a given rate, U 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 yrs At 6% rate, it will take 12 yrs At 9% rate, it will take 8 yrs 2) *Rule of 70* Divide 70 by current inflation rate to know how fast the value of your investment will get reduced to half its present value. Inflation rate of 7% will reduce the value of your money to half in 10 years. 3) *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 500,000 and you wish to take VRS then corpus with you required is 1.25 cr. Put 50% of this into fixed income & 50% into equity. Withdraw 4% every yr, i.e.5 lac. This rule works for 96% of time in 30 yr period