Making financial decisions often involves a lot of "on the one hand, on the other hand." But sometimes you just want a fast answer -- a simple guideline to point you in the right direction.
| Row 0 - Cell 0 | TAKE THE QUIZ: Truth or Bunk? |
| Row 1 - Cell 0 | Eight Keys to Financial Security |
That's where rules of thumb come in: They aim to break down a complex financial choice into a quick one-liner. You know, "Never spend more than 36% of your income on housing," for example, or "pay off debt with the highest interest rate first."
They may be touted as gospel truth, but when it comes to money rules of thumb, some are more helpful than others. Many are time-tested words of wisdom that set you on the right path. Others are downright wrong and could wind up costing you, no matter how well-meaning the giver of advice. The misleading guidelines may be outdated, impractical or simply a misunderstanding. The trick is evaluating these oft-quoted principles to see if they make sense for your personal situation.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Just how useful are the financial rules of thumb? We've pulled together a QUIZ to see if you can sort the most truthful advice from the misleading.
Of course, the one solid rule of thumb you can count on is that there is no one-size-fits-all answer to most financial decisions. But if you can zero in on the best rules of thumb, you're one step closer to making good choices with your money.
TAKE OUR QUIZ: Financial Truth or Bunk?
-
If You'd Put $1,000 Into Berkshire Hathaway Stock 20 Years Ago, Here's What You'd Have TodayBerkshire Hathaway is a long-time market beater, but the easy money in BRK.B has already been made.
-
New SALT Cap Deduction: Unlock Massive Tax Savings with Non-Grantor TrustsThe One Big Beautiful Bill Act's increase of the state and local tax (SALT) deduction cap creates an opportunity to use multiple non-grantor trusts to maximize deductions and enhance estate planning.
-
Amazon Resale: Where Amazon Prime Returns Become Your Online BargainsFeature Amazon Resale products may have some imperfections, but that often leads to wildly discounted prices.
-
Roth IRA Contribution Limits for 2025Roth IRAs Roth IRA contribution limits have gone up. Here's what you need to know.
-
Four Tips for Renting Out Your Home on Airbnbreal estate Here's what you should know before listing your home on Airbnb.
-
Five Ways to a Cheap Last-Minute VacationTravel It is possible to pull off a cheap last-minute vacation. Here are some tips to make it happen.
-
How Much Life Insurance Do You Need?insurance When assessing how much life insurance you need, take a systematic approach instead of relying on rules of thumb.
-
When Is Amazon Prime Day? Everything We Know, Plus the Best Deals on Apple, Samsung and MoreAmazon Prime Amazon Prime Day is four days this year. Here are the key details you need to know, plus some of our favorite deals to shop during the sale.
-
How to Shop for Life Insurance in 3 Easy Stepsinsurance Shopping for life insurance? You may be able to estimate how much you need online, but that's just the start of your search.
-
Five Ways to Shop for a Low Mortgage RateBecoming a Homeowner Mortgage rates are high this year, but you can still find an affordable loan with these tips.
