Good rule of thumb for

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Use rule of thumb in a sentence. The traditional rule of thumb when showing up to a party at someone's house is to bring a small gift. An example of a rule of thumb is the general guideline that you don't wear white after Labor Day.

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You've reviewed your spending and created a budget, and now you know exactly how much you spend on your home, your car, discretionary spending, and how much you divert to your retirement accounts. That's all good, but what about your other savings, such as for an emergency? Harvard bankruptcy expert Elizabeth Warren—U.

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Your nephew has just graduated from college and started his first job. You're talking to him at a family get-together. You give him some money advice.

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Sometimes the best advice is the simplest. Why it works: During the wild years of the housing boom, consumers seemed to stop grounding their housing decisions in income. This rule can help remind consumers that income should be a primary criterion when deciding how much to pay for a house. A better guide to whether to buy a home is rental prices in your area, says Finke.

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Being an adult is about more than the number of candles on your birthday cake. To cut down on procrastination, do any task that takes less than two minutes to complete right away. This applies to anything from doing the dishes to responding to personal emails work emails are another story, as studies show it may be more productive to spend longer stretches of time focusing on a single task—see No.

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Saving for retirement can be intimidating. There are so many different plans to choose from, different investment companies to manage your plan, restrictions on who can contribute and how much, tax rules to follow and paperwork to keep track of — not to mention investment decisions to make after you have your plan set up. The best way to handle this complex but essential process is to break it down into small, manageable steps.

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A rule of thumb is a guideline that provides simplified advice regarding a particular subject. It is a general principle that gives practical instructions for accomplishing or approaching a certain task. Typically, rules of thumb develop as a result of practice and experience rather than from scientific research or theory.

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Rules of thumb can be a good approximate guideline for decisions, and there are tons of money rules that aim to get your finances on track. This is a popular rule for breaking down your budget. Twenty percent should then go toward financial goals, like paying off debt or saving for retirement.

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Related to rule of thumb: Rule of thirds. A good rule of thumb is to plant your seedlings around the end of May. See also: ofrulethumb.

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