As a rule of thumb

a rule of thumb is a generalisation, and in social settings can be useful, as it gives you guidance on how to act in a situation. For example, when looking at a photo on someone else’s phone, never ever swipe lest you invade their privacy. (You may be surprised by what you see!)

When it comes to money, however, a rule of thumb should not be considered gospel, but merely a guideline.

Personal economics is about allocating a scare resource (your monthly income) towards needs (things that keep you alive) and wants (things that make you ). While it can be tempting to abdicate responsibility and just follow a rule of thumb, the reality is that we