Rule of thumb what does it mean

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. Related Articles. Love words? Need even more definitions? Homophones, Homographs, and Homonyms The same, but different. Merriam-Webster's Words of the Week - Nov. Ask the Editors 'Everyday' vs. What Is 'Semantic Bleaching'? How 'literally' can mean "figuratively".

Choose a dictionary. Clear explanations of natural written and spoken English. Usage explanations of natural written and spoken English. Grammar Thesaurus.

Word Lists. Choose your language. My word lists. Tell us about this example sentence:. Hence arise factions, dissensions, and loss to their religious interests and work; and these intruders seek to rule the others. This impulse to extend rule appears more plainly in many of the little ceremonial observances of the child.

A rough and useful principle or method, based on experience rather than precisely accurate measures. For example, His work with the youth group is largely by rule of thumb. This expression alludes to making rough estimates of measurements by using one's thumb. New Word List Word List.