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		<title>The Financial rules to live by as a Freelancer</title>
		<link>https://andrasferencz.ro/the-financial-rules-to-live-by-as-a-freelancer/</link>
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		<dc:creator><![CDATA[András Ferencz]]></dc:creator>
		<pubDate>Mon, 21 Nov 2022 12:45:53 +0000</pubDate>
				<category><![CDATA[Freelancing]]></category>
		<category><![CDATA[financial]]></category>
		<category><![CDATA[freelancing]]></category>
		<category><![CDATA[rules]]></category>
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					<description><![CDATA[<p>The Financial rules to live by as a Freelancer Rule of 72 It calculates the number of years it takes your money to double, given a rate of return.You just need to divide 72 by the interest rate. If your investment returns 4%, it will take 18 years for your money to double (72/4 = [&#8230;]</p>
<p>The post <a href="https://andrasferencz.ro/the-financial-rules-to-live-by-as-a-freelancer/">The Financial rules to live by as a Freelancer</a> appeared first on <a href="https://andrasferencz.ro">András Ferencz | Mobile Software Engineer Freelancer • Contractor • Consultant • Digital Enthusiast</a>.</p>
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					<div  class="jeg-elementor-kit jkit-post-title jeg_module_4583__69dc0aae1ab3a" ><h2 class="post-title style-color ">The Financial rules to live by as a Freelancer</h2></div>				</div>
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									<h3>Rule of 72</h3><aside><blockquote><p>It calculates the number of years it takes your money to double, given a rate of return.You just need to divide 72 by the interest rate.</p><p>If your investment returns 4%, it will take 18 years for your money to double (72/4 = 18).</p></blockquote></aside><h3>Rule of 114</h3><aside><blockquote><p>It calculates the number of years it takes your money to triple-double, given a rate of return.An investment growing at 7% will triple in about 16.29 years (114/7 = 16.29).</p></blockquote></aside><h3>Rule of 144</h3><aside><blockquote><p>It calculates the number of years it takes your money to triple quadruple, given a rate of return.An investment growing at 9% will quadruple in 16 years (144/9=18).</p></blockquote></aside><h3>10-5-3 Rule</h3><aside><blockquote><p>This rule tells you how different asset classes give you different types of returns.- Equity / Mutual funds: returns expected to be about 10%.</p><p>&#8211; Debt : returns expected to be about 5%.</p><p>&#8211; Savings returns are expected to be about 3%.</p></blockquote></aside><h3>The 50/30/20 rule</h3><aside><blockquote><p>This is a rule for budgeting.</p><p>50% of your income should go toward your needs, such as rent, utilities, and food.</p><p>30% for wants such as dining, entertainment, and leisure.</p><p>20% for financial goals, such as paying off debt or saving for retirement.</p></blockquote></aside><h3>100 minus your age rule</h3><aside><blockquote><p>It is used for asset allocations.Subtract your age from 100 to know the equity vs. bond allocation.</p><p>Age 30: Equity: 70%, Bonds: 30%<br />Age 60: Equity: 40%, Bonds: 60%</p><p>Some people use 110 or 120 to be more aggressive in their allocation.</p></blockquote></aside><h3>Rule of 70</h3><aside><blockquote><p>Divide 70 by the inflation rate to find out how quickly the value of your investment or money will be decreased by half.For instance, if the inflation rate is 5%, it will take 14 years to reduce the value of your money by half.</p></blockquote></aside><h3>3X Emergency Rule</h3><aside><blockquote><p>This rule states that one should have at least three months of their monthly income in an emergency fund.3X the monthly income should be saved.</p><p>Some people save 6X of their monthly income to be more conservative and safe.</p></blockquote></aside><h3>The 20/4/10 rule</h3><aside><blockquote><p>This is used if you finance a car.- Put at least 20% down.</p><p>&#8211; Pay off the car in no more than 4 years.</p><p>&#8211; Spend no more than 10% of your gross monthly salary on car expenses.</p></blockquote></aside><h3>4% withdrawal rule</h3><aside><blockquote><p>This is used to calculate your retirement number.If you said that you would retire with an annual income of $50,000, divide your annual income by 4%.</p><p>In this case, you need $1.25 million saved.</p></blockquote></aside><h3>40% EMI rule</h3><aside><blockquote><p>This rule applies when a person is borrowing money.It states that a person&#8217;s monthly income should not go toward their EMI (equated monthly installment).</p><p>For instance, if you make $5,000/month, you should have less than $2,000 of EMI.</p></blockquote></aside><p> </p><p><span style="color: #999999;"><em><span class="notion-enable-hover" data-token-index="0" data-reactroot="">Source: </span><a class="notion-link-token notion-enable-hover" style="color: #999999;" href="https://www.investopedia.com/" target="_blank" rel="noopener noreferrer" data-token-index="1" data-reactroot=""><span class="link-annotation-unknown-block-id--155994999">https://www.investopedia.com/</span></a></em></span></p>								</div>
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		<p>The post <a href="https://andrasferencz.ro/the-financial-rules-to-live-by-as-a-freelancer/">The Financial rules to live by as a Freelancer</a> appeared first on <a href="https://andrasferencz.ro">András Ferencz | Mobile Software Engineer Freelancer • Contractor • Consultant • Digital Enthusiast</a>.</p>
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