Rules of thumb are meant to stand as simple shortcuts for far larger, and more complex, processes and practices. The world of personal finance is rife with them. There are so many that, often, they conflict. When that happens, where do we turn? Who do we believe?
Enter J. D. Roth, writing from his blog Get Rich Slowly. He has taken the time to list and explain his favorite financial rules of thumb – 18 in total.
The first one on his list is “when estimating income, $1 an hour in wage is equal to about $2000 per year in pre-tax earnings”. This is helpful when comparing the income of salary positions against hourly ones.
Click here to read all 18 financial rules of thumb.