Comments on: 30 Personal Finance Rules of Thumb http://www.milliondollarjourney.com/30-personal-finance-rules-of-thumb.htm Building Wealth through Saving and Investing Fri, 19 Mar 2010 19:36:23 -0400 http://wordpress.org/?v=abc hourly 1 By: Dividend growth investor http://www.milliondollarjourney.com/30-personal-finance-rules-of-thumb.htm/comment-page-1#comment-29935 Dividend growth investor Wed, 02 Apr 2008 15:58:16 +0000 http://www.milliondollarjourney.com/30-personal-finance-rules-of-thumb.htm#comment-29935 I back tested rule number # 3 for your twenties. It does seem accurate. http://dividendgrowth.blogspot.com/2008/04/back-test-results-of-one-rule-of-thumb.html I back tested rule number # 3 for your twenties. It does seem accurate.

http://dividendgrowth.blogspot.com/2008/04/back-test-results-of-one-rule-of-thumb.html

]]> By: Sarah http://www.milliondollarjourney.com/30-personal-finance-rules-of-thumb.htm/comment-page-1#comment-29676 Sarah Sun, 30 Mar 2008 16:39:39 +0000 http://www.milliondollarjourney.com/30-personal-finance-rules-of-thumb.htm#comment-29676 Rule no. 2 has always been really confusing for me. I am 23 right now, so I've only been working full-time for a little under a year and a half. There should be a qualifying statement somewhere in the book about how this equation cannot possibly apply to people who have been working for < 5 years or so. Even if I saved my entire salary for 3 years, after taxes, I wouldn't have the recommended amount. I mean, it's pretty obvious, but still makes me feel bad about my savings. Rule no. 2 has always been really confusing for me. I am 23 right now, so I’ve only been working full-time for a little under a year and a half. There should be a qualifying statement somewhere in the book about how this equation cannot possibly apply to people who have been working for < 5 years or so. Even if I saved my entire salary for 3 years, after taxes, I wouldn’t have the recommended amount. I mean, it’s pretty obvious, but still makes me feel bad about my savings.

]]> By: Patrick http://www.milliondollarjourney.com/30-personal-finance-rules-of-thumb.htm/comment-page-1#comment-29040 Patrick Mon, 24 Mar 2008 14:21:03 +0000 http://www.milliondollarjourney.com/30-personal-finance-rules-of-thumb.htm#comment-29040 Don't worry about rule #2. It is patently absurd. It means every time you get a raise, you might suddenly be short on your savings because your denominator has increased. It also implies that your retirement savings grow linearly throughout your lifetime, which doesn't happen. Consider a 30-year-old man who has been working at his career for 6 years. Rule #2 says that he should have saved 3x his salary by now. That means half of his entire gross salary would need to have gone into savings! This rule is fundamentally flawed because how much you need in retirement depends on your post-retirement expenses, not your pre-retirement salary. Don’t worry about rule #2. It is patently absurd. It means every time you get a raise, you might suddenly be short on your savings because your denominator has increased. It also implies that your retirement savings grow linearly throughout your lifetime, which doesn’t happen. Consider a 30-year-old man who has been working at his career for 6 years. Rule #2 says that he should have saved 3x his salary by now. That means half of his entire gross salary would need to have gone into savings!

This rule is fundamentally flawed because how much you need in retirement depends on your post-retirement expenses, not your pre-retirement salary.

]]> By: Gary http://www.milliondollarjourney.com/30-personal-finance-rules-of-thumb.htm/comment-page-1#comment-29013 Gary Mon, 24 Mar 2008 06:12:21 +0000 http://www.milliondollarjourney.com/30-personal-finance-rules-of-thumb.htm#comment-29013 #13 Remember always buy a used car, something with a good repair history. Check consumer reports ( at the book store for free ) #13 Remember always buy a used car, something with a good repair history. Check consumer reports ( at the book store for free )

]]> By: AJC @ 7million7years http://www.milliondollarjourney.com/30-personal-finance-rules-of-thumb.htm/comment-page-1#comment-28919 AJC @ 7million7years Sun, 23 Mar 2008 00:25:45 +0000 http://www.milliondollarjourney.com/30-personal-finance-rules-of-thumb.htm#comment-28919 Need to add the 20% Rule ... probably the most important 'rule' of them all ... it tells you <a href="http://7million7years.com/2008/02/04/how-much-to-spend-on-a-house/" rel="nofollow">How Much to Pay for a House</a> ... Need to add the 20% Rule … probably the most important ‘rule’ of them all … it tells you How Much to Pay for a House …

]]> By: » Laundry Detergent, 171.54% APR Loan, and 30 Rules of Thumb on Consumerism Commentary: A Personal Finance Blog http://www.milliondollarjourney.com/30-personal-finance-rules-of-thumb.htm/comment-page-1#comment-28890 » Laundry Detergent, 171.54% APR Loan, and 30 Rules of Thumb on Consumerism Commentary: A Personal Finance Blog Sat, 22 Mar 2008 12:30:10 +0000 http://www.milliondollarjourney.com/30-personal-finance-rules-of-thumb.htm#comment-28890 [...] Trader has compiled a list of 30 personal finance rules of thumb. These are 30 common axioms that with varying levels of usefulness or accuracy. Frugal Trader added [...]

[...] Trader has compiled a list of 30 personal finance rules of thumb. These are 30 common axioms that with varying levels of usefulness or accuracy. Frugal Trader added [...]

]]> By: Personal Finance http://www.milliondollarjourney.com/30-personal-finance-rules-of-thumb.htm/comment-page-1#comment-28709 Personal Finance Thu, 20 Mar 2008 19:45:06 +0000 http://www.milliondollarjourney.com/30-personal-finance-rules-of-thumb.htm#comment-28709 [...] Michael wrote an interesting post today onHere’s a quick excerptNobleea has come up with the idea of compiling personal finance rules of thumb into a blog post. He has done the research and has shared with us his findings. Who is Nobleea? He is a regular reader, commenter, engineer, and personal … [...]

[...] Michael wrote an interesting post today onHere’s a quick excerptNobleea has come up with the idea of compiling personal finance rules of thumb into a blog post. He has done the research and has shared with us his findings. Who is Nobleea? He is a regular reader, commenter, engineer, and personal … [...]

]]> By: » Comment on 30 Personal Finance Rules of Thumb by credit repair … http://www.milliondollarjourney.com/30-personal-finance-rules-of-thumb.htm/comment-page-1#comment-28659 » Comment on 30 Personal Finance Rules of Thumb by credit repair … Thu, 20 Mar 2008 04:33:09 +0000 http://www.milliondollarjourney.com/30-personal-finance-rules-of-thumb.htm#comment-28659 [...] admin wrote an interesting post today onHere’s a quick excerpt[…] Read the rest of this great post here […] [...]

[...] admin wrote an interesting post today onHere’s a quick excerpt[…] Read the rest of this great post here […] [...]

]]> By: 30 Personal Finance Rules of Thumb http://www.milliondollarjourney.com/30-personal-finance-rules-of-thumb.htm/comment-page-1#comment-28654 30 Personal Finance Rules of Thumb Thu, 20 Mar 2008 03:20:23 +0000 http://www.milliondollarjourney.com/30-personal-finance-rules-of-thumb.htm#comment-28654 [...] Pinyo wrote an interesting post today onHere’s a quick excerpt [...]

[...] Pinyo wrote an interesting post today onHere’s a quick excerpt [...]

]]> By: Know The Ledge http://www.milliondollarjourney.com/30-personal-finance-rules-of-thumb.htm/comment-page-1#comment-28549 Know The Ledge Wed, 19 Mar 2008 02:03:30 +0000 http://www.milliondollarjourney.com/30-personal-finance-rules-of-thumb.htm#comment-28549 Wow, I had never seen #2 until now. If that is the case, I am well behind the curve even though I thought I had been doing very well in my financial life. How many are really at that level? Wow, I had never seen #2 until now. If that is the case, I am well behind the curve even though I thought I had been doing very well in my financial life. How many are really at that level?

]]> By: » 30 Personal Finance Rules of Thumb Credit Card on Credit Speak: Find Info, News and More on Credit Card http://www.milliondollarjourney.com/30-personal-finance-rules-of-thumb.htm/comment-page-1#comment-28030 » 30 Personal Finance Rules of Thumb Credit Card on Credit Speak: Find Info, News and More on Credit Card Fri, 14 Mar 2008 02:48:15 +0000 http://www.milliondollarjourney.com/30-personal-finance-rules-of-thumb.htm#comment-28030 [...] 30 Personal Finance Rules of Thumb Top 6 ways to Save on Auto Insurance High Interest Rate Savings Accounts MBNA SPG Credit Card Review Questrade Review… [...]

[...] 30 Personal Finance Rules of Thumb Top 6 ways to Save on Auto Insurance High Interest Rate Savings Accounts MBNA SPG Credit Card Review Questrade Review… [...]

]]> By: Carnival of Personal Finance #143 - Oh Canada Edition http://www.milliondollarjourney.com/30-personal-finance-rules-of-thumb.htm/comment-page-1#comment-27530 Carnival of Personal Finance #143 - Oh Canada Edition Mon, 10 Mar 2008 02:14:39 +0000 http://www.milliondollarjourney.com/30-personal-finance-rules-of-thumb.htm#comment-27530 [...] Dollar Journey had an interesting look at 30 personal rules of thumb. and provides some good analysis of [...]

[...] Dollar Journey had an interesting look at 30 personal rules of thumb. and provides some good analysis of [...]

]]> By: Weekly Round Up - A New Member, A Milestone, and Free Stuff! http://www.milliondollarjourney.com/30-personal-finance-rules-of-thumb.htm/comment-page-1#comment-27520 Weekly Round Up - A New Member, A Milestone, and Free Stuff! Sun, 09 Mar 2008 22:58:32 +0000 http://www.milliondollarjourney.com/30-personal-finance-rules-of-thumb.htm#comment-27520 [...] Dollar Journey - 30 Personal Finance Rules of Thumb. Lots of great personal finance [...]

[...] Dollar Journey – 30 Personal Finance Rules of Thumb. Lots of great personal finance [...]

]]> By: Patrick http://www.milliondollarjourney.com/30-personal-finance-rules-of-thumb.htm/comment-page-1#comment-27472 Patrick Sun, 09 Mar 2008 03:06:05 +0000 http://www.milliondollarjourney.com/30-personal-finance-rules-of-thumb.htm#comment-27472 Rule 30 is wrong. It doesn't matter whether it's warmer or colder. That's exactly why they normalize it to a certain temperature. At higher temperatures, gas expands, but it's the same number of molecules; they just occupy more space. Therefore, you get more litres per dollar, but each litre contains less burning power, and you end up exactly even. A full tank of gas will take you farther in winter than in summer, but will cost proportionally more. Rule 30 is wrong. It doesn’t matter whether it’s warmer or colder. That’s exactly why they normalize it to a certain temperature. At higher temperatures, gas expands, but it’s the same number of molecules; they just occupy more space. Therefore, you get more litres per dollar, but each litre contains less burning power, and you end up exactly even.

A full tank of gas will take you farther in winter than in summer, but will cost proportionally more.

]]> By: Weekly Dividend Investing Roundup - March 7, 2008 » The Dividend Guy Blog http://www.milliondollarjourney.com/30-personal-finance-rules-of-thumb.htm/comment-page-1#comment-27372 Weekly Dividend Investing Roundup - March 7, 2008 » The Dividend Guy Blog Fri, 07 Mar 2008 15:33:58 +0000 http://www.milliondollarjourney.com/30-personal-finance-rules-of-thumb.htm#comment-27372 [...] 30 Personal Finance Rules of Thumb check out Million Dollar Journey’s [...]

[...] 30 Personal Finance Rules of Thumb check out Million Dollar Journey’s [...]

]]> By: SB http://www.milliondollarjourney.com/30-personal-finance-rules-of-thumb.htm/comment-page-1#comment-27303 SB Thu, 06 Mar 2008 23:53:39 +0000 http://www.milliondollarjourney.com/30-personal-finance-rules-of-thumb.htm#comment-27303 Regarding Item 30: I disagree with your comment that you are better off buying gas when it is warmer, you are actually better off buying gas when the temperature is colder. Volume is independant of temperature, so regardless of the ambient temperature when you buy gas you get the same volume, i.e. 30L is 30L regardless if it is +30 or -30 degrees. However, the volume you purchased will change later if the ambient air temeprature changes. At lower temperatures gas will contract, thus the gas has more energy stored in it for a given volume, when compared to the equal volume at higher a temperature. Seeing it is the energy stored in the gas that drives the engine, you are better off buying gas when it is cold because you effictively purchase more energy. Regarding Item 30:

I disagree with your comment that you are better off buying gas when it is warmer, you are actually better off buying gas when the temperature is colder.

Volume is independant of temperature, so regardless of the ambient temperature when you buy gas you get the same volume, i.e. 30L is 30L regardless if it is +30 or -30 degrees. However, the volume you purchased will change later if the ambient air temeprature changes.

At lower temperatures gas will contract, thus the gas has more energy stored in it for a given volume, when compared to the equal volume at higher a temperature. Seeing it is the energy stored in the gas that drives the engine, you are better off buying gas when it is cold because you effictively purchase more energy.

]]> By: Frugal Babe » Archive » Posts I Liked This Week http://www.milliondollarjourney.com/30-personal-finance-rules-of-thumb.htm/comment-page-1#comment-27220 Frugal Babe » Archive » Posts I Liked This Week Thu, 06 Mar 2008 01:29:24 +0000 http://www.milliondollarjourney.com/30-personal-finance-rules-of-thumb.htm#comment-27220 [...] Thirty good personal finance rules to live by.  [...]

[...] Thirty good personal finance rules to live by.  [...]

]]> By: DAvid http://www.milliondollarjourney.com/30-personal-finance-rules-of-thumb.htm/comment-page-1#comment-27219 DAvid Thu, 06 Mar 2008 01:12:11 +0000 http://www.milliondollarjourney.com/30-personal-finance-rules-of-thumb.htm#comment-27219 Renting is fine if you can find a place. In our town, there is practically nothing to rent, so if you want a roof over your head, you might have to buy. Housing prices have more than doubled in the past 3 years, so this creates a considerable housing problem! DAvid Renting is fine if you can find a place. In our town, there is practically nothing to rent, so if you want a roof over your head, you might have to buy. Housing prices have more than doubled in the past 3 years, so this creates a considerable housing problem!

DAvid

]]> By: FrugalTrader http://www.milliondollarjourney.com/30-personal-finance-rules-of-thumb.htm/comment-page-1#comment-27215 FrugalTrader Thu, 06 Mar 2008 00:04:41 +0000 http://www.milliondollarjourney.com/30-personal-finance-rules-of-thumb.htm#comment-27215 I'm with you Warren. I would rather rent than to have a huge portion of my take home pay go towards my mortgage. I’m with you Warren. I would rather rent than to have a huge portion of my take home pay go towards my mortgage.

]]> By: Warren http://www.milliondollarjourney.com/30-personal-finance-rules-of-thumb.htm/comment-page-1#comment-27209 Warren Wed, 05 Mar 2008 21:21:02 +0000 http://www.milliondollarjourney.com/30-personal-finance-rules-of-thumb.htm#comment-27209 I think the down payment rule of thumb is not far off. Its a big warning that home prices out here in BC are way too high, and destined for a drop. Rents haven't increased, go ahead and keep renting. I think the down payment rule of thumb is not far off. Its a big warning that home prices out here in BC are way too high, and destined for a drop. Rents haven’t increased, go ahead and keep renting.

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