**How much Insurance should one have?**

getting an insurance is the first step towards personal finance so what is insurance? it is the amount of money that helps you overcome any unfortunate events pertaining financial loss. the insurance can be of any type health, personal or term. So that said, how much of minimum insurance should you necessarily have?

*It should be 8-10 times of your gross yearly income*

**2. How much loan should you have?**

Loans yes personal or home any loan taken to satisfy your personal needs comes into this category

how much of loan should you take which can be easily payable

Not more than 40% of your gross yearly income**How to calculate***Gross Yearly Income amount X 0.4 = Loan Amount*

**3.How much should one be invested in equity?**

Here Equity means the money that should be invested in shares

Lesser the age the more risk you can take so the question arises how much should you invest in the equity Equity gives you compounding returns and can make you financially stable

**How to Calcualte***(100-Age)% of your portfolio*

If your age is 22 then (100-22)% = 78%

This percentage goes decreasing as age increases to reduce risk

**4. How much of emergency fund should one have?**

You should always prepare for “Worst Case Scenario” like

*a. Loosing a job**b.Getting into an accident* etc-

anything can happen at any point of life so* You should have atleast 4-6 months of income* in your emergency fund which can support you through bad times.

**5.In how many years will my money double or triple?**

The most asked question of all time is how will my money double or triple well I cant tell you for sure how but

I cant tell you when will you money double

**How to calculate the number of years in which your money will double?***72/ rate of return*

Example : if you get interest rate of 8% then it will take

72/8 = 9 years to double your invested money

Similarly to **calculate the time required to triple the money** *114/ rate of interest*

Example : keeping interest rate same 8%

it will take 114/8 = 14 years approx. to triple money

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