What is rule of thumb

Log in Sign Up. Save Word. Definition of rule of thumb. First Known Use of rule of thumb circa , in the meaning defined at sense 1. Keep scrolling for more. Learn More About rule of thumb. Share rule of thumb Post the Definition of rule of thumb to Facebook Share the Definition of rule of thumb on Twitter.

Time Traveler for rule of thumb The first known use of rule of thumb was circa See more words from the same year. Statistics for rule of thumb Look-up Popularity. Business Essentials Guide to Mergers and Acquisitions. Business Business Essentials. What is a Rule Of Thumb? Key Takeaways A rule of thumb is an informal piece of practical advice providing simplified rules what apply in most situations.

There are many rules of thumb in finance that give guidance on how much to save, how much to pay for a house, where to invest, and so on.

Rules of thumb are not scientific and do not take into account the individual circumstances and needs of a person, so they may not be applicable to your particular situation. Compare Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace. What Is Retirement? Retirement refers to the time of life when one chooses to permanently leave the workforce behind.

Rule 72 t Rule 72 t , issued by the Internal Revenue Service, allows for penalty-free withdrawals from an IRA account and other specified tax-advantaged accounts. Rule of 72 The Rule of 72 is a shortcut or rule of thumb used to estimate the number of years required to double your money at a given annual rate of return and vice versa. Personal Finance Personal finance is all about managing your personal budget and how best to invest your money to realize your goals. Partner Links.

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