Some Tips to Stay Solvent

Buffalo NewsMay 11, 2010

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Summary


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: For perspective on big purchases, think about how you will feel about it in 10 days, 10 weeks and 10 years. For a luxury car: In 10 days, I'll still be excited about the new-car smell and its nice ride. In 10 weeks, it's just the machine I use to get to work and the supermarket. In 10 years, I'll barely remember this car.

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Some Tips to Stay Solvent

*House payment: Your mortgage, including taxes and insurance, should not exceed 29 percent of your gross mon...

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