Personal Finance — Quick Reference Cheatsheet
Essential Formulas & Rules
Core Topics
Budgeting (50/30/20 Rule):
Key formula/rule: See fundamentals section for complete derivation
When to apply: When the problem mentions keywords related to budgeting (50/30/20 rule)
Emergency Fund:
Key formula/rule: See fundamentals section for complete derivation
When to apply: When the problem mentions keywords related to emergency fund
Debt Management:
Key formula/rule: See fundamentals section for complete derivation
When to apply: When the problem mentions keywords related to debt management
Mutual Funds & SIP Investing:
Key formula/rule: See fundamentals section for complete derivation
When to apply: When the problem mentions keywords related to mutual funds & sip investing
Insurance (Term, Health):
Key formula/rule: See fundamentals section for complete derivation
When to apply: When the problem mentions keywords related to insurance (term, health)
Tax Planning (Section 80C):
Key formula/rule: See fundamentals section for complete derivation
When to apply: When the problem mentions keywords related to tax planning (section 80c)
Problem-Solving Templates
Template 1: Identify → Apply → Verify
Template 2: For MCQs
Most Common Question Types
| Type | What to Do | Time Budget |
|---|
|---|---|---|
| Direct formula | Apply formula directly | 30-60 sec |
|---|---|---|
| Multi-step | Break into steps, apply each | 1-2 min |
| Concept-based | Recall definition + example | 45 sec |
| Data interpretation | Extract data, compute | 2-3 min |
Revision Strategy
1 month before exam:
1 week before:
1 day before:
Labs Section
The Labs section for Personal Finance has: