Managing money doesn't have to be complicated. By adhering to a few timeless personal finance rules, you can safeguard your household against unexpected emergencies and steadily grow your wealth.

Rule 1: Build an Emergency Fund First

Never start investing in volatile assets like stocks before securing 6 months of living expenses in a liquid savings account or fixed deposit. This protects you from having to liquidate investments during a job loss or medical emergency.

Rule 2: Term and Health Insurance are Mandatory

If you have dependents, a pure term life insurance policy is non-negotiable. Similarly, buy a separate private health insurance policy for your family so that hospital bills do not wipe out your lifetime savings.

Rule 3: Keep EMIs under 35% of Take-Home Pay

Whether it is a home loan, car loan, or gadgets on EMI, keep your cumulative monthly loan repayments well below 35% of your net income to maintain breathing room in your budget.

Savings