Four Personal Finance Rules That Need a Revamp

Some of the best-known rules of thumb in personal finance have outlived their usefulness.

While it’s helpful to have a starting point for a housing budget or savings target, or for splitting an investment portfolio between asset classes, many popular guidelines date back to a time when the growth in real estate prices and wages was more closely aligned, student debt hadn’t breached the trillion-dollar mark, and stocks and bonds didn’t fall at the same time.

Here are four outdated rules, and suggestions for more realistic ways to think about finances.