Money Saving Tips: If you want to become rich in a short time, then adopt these easy methods

Khabar TV (Bureau): It is everyone's dream to become rich. To fulfill this dream, many people work hard their whole life, while many people want to become rich as soon as possible, but the truth is that only a few people are able to fulfill their dream of becoming rich. 

In such a situation, if you also want to become rich by saving your earnings, then it is important for you to know what is the way to become rich? For this, first of all it is important that you understand the easy personal finance rules of earning and saving.

Here we are going to tell you what is the easy formula to become rich? If you follow these formulas correctly, then you will never face shortage of money in life. No one will be able to stop you from becoming a crorepati. So let's know.

To become rich, it is not necessary to have a lot of income (Easy formula to become rich)

Many people are not able to become rich even after earning very well. Because they neither know the way to save money (formula to become rich) nor are they able to invest their money in the right place. 

But to become rich, it is not necessary to earn a lot. You can become rich by saving some money from whatever you earn and investing it in the right place. Talking about the way to become rich, it includes making a budget, saving and investing according to your income.

50-30-20 rule (personal finance rules)

To become rich, first of all you have to do financial planning from the use of money to where and how much to invest. 50-30-20 rule is a great and easy way to save money. Under this, you have to divide your earning money into three different parts from need to savings. 

This 50-30-20 rule means that you should keep 50 percent for your monthly essential expenses. Apart from this, 30 percent should be kept for fulfilling your hobbies. At the same time, the remaining 20 percent of the income should be saved for future needs and invested in the right place.

2X Saving Rule (personal finance rules)

If you think that you can get great returns by depositing money in your savings account, then this is not true. You get very low returns in a savings account. But if you want to earn more interest even by depositing money in a savings account, then it is better for you to choose the option of Auto Sweep Facility.

You can activate the auto sweep facility in your savings account by contacting your bank. Under the auto sweep facility, if the money in your savings account exceeds a limit, then the extra money from the limit automatically goes to the Fixed Deposit Account. After this, you get FD-like returns on the savings account (Best FD Returns). In this, you get 5-7% more return than before.

6X Emergency Fund Rule

Keeping in mind the emergency situation in future, you should invest at least six times of your monthly income in the emergency fund. This is a great way of secure investment. In simple words, if your monthly expenditure is 1 lakh, then you should save 6 lakhs to deal with the emergency situation in future. 

20X Term Insurance Rule

The best way to calculate the minimum sum assured in term life insurance is 20X term insurance. This means that you should have a term insurance cover of twenty times your annual income. Insurance experts believe that the term life insurance cover should be at least 15 to 20 times your current annual income.

25X Retirement Rule

Retirement planning is very important for every person. Many things are taken into consideration while planning retirement, but retirement savings should be done especially according to the rapidly increasing inflation. 

For this, the 25X retirement savings rule is very important. Under this, if you are planning for retirement, then you should have 25 times your annual expenses as retirement fund. After this, you can think about retiring comfortably.