Money rules of thumb can be inaccurate because people’s financial lives differ so much. But they can help us make difficult decisions or give us benchmarks. Here are a few:
• Rule of 10: To get a perspective on a big purchase, think about how you will feel about it in 10 days, 10 weeks and 10 years.
• Car payment: All vehicle payments should not exceed 15 percent of your take-home pay.
• Total debt: Total monthly payments should not exceed 36 percent of your gross monthly income.
• Car repair: If the auto repair costs less than half of the trade-in value, repair it. Otherwise, considering selling it and buying another.
• Organic produce: If it has a thin skin that you eat, such as apples, spend extra for organic. If it has a thick skin that’s discarded — say, bananas — save your money. It’s about exterior pesticide residue.
