6 Investing Rules To Live By (Part 2): Inflation, Risk, And Resilience

Investments Your Money

In Part 1, we looked at the compounding rules. Doubling, tripling, and quadrupling your money over time. Those rules are powerful because they show what long-term investing can achieve when you stay consistent.

But there’s another side to investing that’s just as important.

It’s not only about growing wealth. It’s also about protecting it, keeping your plan steady, and making sure you can hold your nerve when life throws something unexpected at you.
This is Part 2, covering inflation, risk balance, and resilience.

The 3 Rules (At A Glance)

4) The Rule of 70 (Inflation Is Always Working)

70 ÷ inflation rate (%) = years for buying power to halve

Example: If inflation averages 3.5%, then 70 ÷ 3.5 = 20. Buying power halves every 20 years.
Why it matters: Cash can feel safe, but inflation quietly reduces what it can buy over time. Investing helps protect your future lifestyle.

5) The Rule of 110 (A Simple Asset Mix Guide)

110 − your age = a rough % guide for growth assets

Example: If you’re 40, then 110 − 40 = 70. You might hold around 70% in growth assets, and 30% in defensive assets.

This is not a strict rule. It’s simply a starting point.

Why it matters: Many people take too much risk too late, or too little risk too early. A balanced mix reduces regret, and supports better long-term decisions.

6) The 3 to 6 Month Rule (Emergency Fund First)

Keep 3-6 months of living costs available.

It’s not exciting, but it is powerful.

Why it matters: An emergency fund stops you from having to sell investments at the wrong time. It protects your plan when life throws something unexpected at you.

The Takeaway

If compounding is the engine of long-term wealth, then these three rules are about keeping the wheels on. They’re the reminder that investing is not just about returns. It’s also about having enough stability to stay consistent.

Inflation is always ticking away in the background. Your investment mix needs to match your life stage. And your emergency fund is what protects you from having to make decisions under pressure.

Put together, these are the habits that help investing feel calmer, clearer, and more sustainable.

Because in the end, the best investment strategy is still the one you can stick with.

Want Help With A Simple Investment Plan?

If you’d like advice that’s tailored to your situation, and helps you invest with confidence (without overcomplicating it), get in touch with Mark and the Hallam Jones team.

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