In life people want shortcuts – I think that’s the reason rules of thumb find someplace in one life. These financial planning rules of thumb are very basic & not at all full-proof as the requirements of 2 different people can never be the same. They can just give you some idea but important financial decisions should not be taken on basis of these. Editor of The Journal of Financial Planning (US), once noted that “Rules of thumb are for people who want to decide things without thinking about them.” But still, it will be unfair to suggest ignoring all of them.

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