Twenty rules of thumb

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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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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. While everyone's situation is different, these serve as a good starting point. We thought we'd put together a list of some solid, useful rules of thumb to follow.

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Gaining the commitment of the right resources is arguably the greatest success factor for strategic initiatives. Chances are excellent that they have other responsibilities that they can not easily shirk or delegate. Does management make a tough choice, or hope that this person can do it all? A practical problem for resourcing strategic initiatives is that the best people in any organization are kept very busy.

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A rule of thumb is an informal principle that is intended to provide general guidance rather than precise direction. It's not expected that a rule of thumb will always provide the correct answer. For example, see below three rules of thumb for dealing with Internet problems :.

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The Pareto principle is only tangentially related to Pareto efficiency. Pareto developed both concepts in the context of the distribution of income and wealth among the population. The original observation was in connection with population and wealth.

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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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The rules of thumb, or heuristics, discussed in this document are meant to be helpful tips that are readily usable and can be easily remembered. They are not intended to be strictly accurate or reliable for every situation. Paying yourself first is the most important bill you will pay each month.

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