Why You Should Be Skeptical of Financial “Rules of Thumb”
Prairie Eco-Thrifter
MAY 1, 2013
'Rules of thumb are often used to make various financial decisions. While they can be helpful when it comes finding a starting point, rules of thumb should be approached with a degree of skepticism. Circumstances — And the Markets — Change. Many rules of thumb are based on a specific set of circumstances. The rule of thumb that states that it makes sense to spend 30% of your income each month on a housing payment doesn’t take into account the fact that you might have other debt
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