Can a Rule of Thumb Be a Shortcut to Financial Well-Being?
Our research explores how financial rules of thumb can help or hold back investors.
Easy-to-use financial rules of thumb have always captured public interest, whether they are presented in best-selling books, TV talk shows, or, most recently, short TikTok videos.
The allure of these shortcuts to financial health is understandable: The idea that the answers to complex financial decisions can be simplified into 10 words or less seems magical. Unfortunately, the research behind many of the most famous financial rules of thumb is not robust and, in some cases, nonexistent.