Top 4 Thumb Rules of Perfect Cash Flow

Debt and equity
The assets are needed to be spread across debt and equity very carefully.
Always consider the risk factor before you invest. Using equity for the shortterm
goals, as little risk might not be enough for the investment.
Rule no. 3
Savings towards Retirement
One should always save a minimum of 10 percent of his/her income toward
their retirement.
The 10 percent rule gives people a target to work toward. Retirement savings is
a must and it is the base of your future life. Saving 10 percent throughout your
career would create a good amount of funds and it will be enough to provide a
solid retirement nest for you and your partner.
Rule no. 4
How Much To Borrow
As you are already done with expenses and savings. There are certain situations
in life where you need to borrow. It may be to buy a home, gadgets or a car.
You don’t have control over non-discretionary expenses, but what you can
control is your discretionary expenditures like taking a holiday and buying a
camera on EMI. However, a need for a loan cannot be avoided fully. But it’s
important, to know the limit how much you borrow. Experts suggest that the
total EMI on a person should not be more than 35% of the total take home
salary.
Cash flow is very important to maintain to have a balanced financial life. The
above-mentioned points will surely help you to achieve a perfect cash flow in
your life.