7 Personal Finance Rules You Should Break ...


Personal finance rules can keep your money on track. But although money experts recommend specific moves, it's okay to break some of these rules. The truth is, there are no hard or fast rules when it comes to managing your finances. And recommendations that work for one person don’t always work for another. Here are seven personal finance rules you should break -- if it doesn't work with your situation.

1. Max out Your 401(k) Plan

There are several personal finance rules that money experts preach, such as maxing out your 401(k) plan. This makes sense from a long-term financial standpoint. If you contribute the most to your 401(k) plan over the next 30 or 40 years, you might qualify for an employee-match, which can result in a more comfortable retirement. But before you max out contributions, take a look at your personal finances. Do you have money in a liquid cash reserve? If not, you might contribute less to your 401(k) now, and focus on building your emergency fund. You can always increase contributions to your retirement plan once you have a 3 to 6-month emergency fund.

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