5 Money Rules You Should Expertly Break

There are many rules of thumb concerning money, but despite them being well intended,  they vary in relevance depending on personal finance.

Here are some of those rules that you can expertly break and still remain on course.

#1 Buy In Bulk

Should I always buy in bulk?

There is no major problem with this rule is when you buy goods on offer from wholesale shops it is relatively cheaper, but it does not work for everyone. Studies have proved that shoppers buy more than required, moreover this rule does not apply to perishable goods that can go bad.

Instead of bulk buying, purchase that which you only require for a specified amount of time.

#2 Don’t Borrow To Invest


This is a rule that is very well known by entrepreneurs. Relying on borrowed money to invest is a no-no! However, what is wrong is borrowing against an important asset.

However, when the return on investment of the loan is high and the risk is low, then the loan is good.

#3 Spend No More Than 30% of Your Income in Housing

Buy a house or save Money

If you have visited a financial analyst, you probably have heard of this rule when budgeting. However, this was a valid rule back in the 1960s where studies had established a rent threshold of 25% of family income.

Studies have recently shown that people spend up to 40% of their income on housing. The main consideration is affordability which varies with every individual.

#4 Save 10 of Your Income for Retirement

Money Advise

This has been the oldest rule in the book. However, with rising costs and longer life expectancy, 10% may not be sufficient for retirement, especially if you start saving at the age of 30 or older.

Save more when you can to cushion your future.

#5 Don’t Use Your Credit Cards


Credit cards make spending super easy. This might be the reason this rule was erected. However, if wisely used, credit cards can help build you a credit score, which can make you eligible for more credit in the future.

They also have awesome rewards and incentives such as cash backs and travel points.

Breaking the above money, rules require expert thinking. Which are you ready to break? Share with us by leaving us a comment below.

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