Fundamental rules - personal finance

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Some of the fundamental rules one has to look upon when handling personal finance in the journey towards financial freedom are: 

  1. Have health insurance covering all the family members and a term life insurance for the one whom the family is mainly dependent upon based on your debt and obligations.
  2. Keep aside an emergency fund that may last at least about 6-12 months of your monthly expenses (below age 50) and 12-24 months of your monthly expenses (above age 50).
  3. Invest in appreciating asset classes in a disciplined and consistent manner by understanding your risk appetite, various financial goals, and time horizon.

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