Sometimes the financial “rules” we’re taught just don’t fit real life. Following them without question could mean missing better opportunities or savings. It’s time to ditch the outdated advice and focus on what actually works for you. Here are 10 financial rules to break to save more money.
“Never Carry Any Debt”
Not all debt is bad. Sure, piling up credit card balances at high interest isn’t a smart move. But low-interest debt, like mortgages or student loans, can actually work in your favor. Instead of rushing to pay off a 3% mortgage, consider investing that money where it could earn more. Breaking this “rule” could free up cash to grow your savings more effectively.
💸 Take Back Control of Your Finances in 2025 💸
Get Instant Access to our free mini course
5 DAYS TO A BETTER BUDGET
“You Need 20% Down to Buy a House”
Waiting to save up 20% could delay homeownership for years. That’s time you could be building equity. Loans like FHA, USDA, or even conventional ones often let you buy a house with as little as 3% down. Yes, you’ll have to pay for private mortgage insurance (PMI), but if your home appreciates quickly, it could still be worth it.
“Buy New Cars for Reliability”
A new car loses up to 20% of its value the moment you drive it off the lot. If reliability is your concern, gently-used cars just a few years old can be just as dependable. Plus, modern vehicles last longer than ever. Do your research, get a mechanic’s inspection, and you’ll save thousands without sacrificing peace of mind.
“Always Max Out Retirement Savings First”
This is good theoretically, but if you’re drowning in high-interest debt or don’t have an emergency fund, it may not be the best move. By addressing these priorities first, you’ll set a stronger foundation. While retirement savings are important, focus on balancing your financial needs, not creating gaps elsewhere.
“Stick to the 50/30/20 Budget Rule”
The 50/30/20 rule assumes everyone’s finances and priorities fit in the same box. They don’t. Maybe you need to save more aggressively or allocate less toward “wants” for now. Customize your budget for your reality. It’s your money, and it should serve your goals—not some one-size-fits-all guideline.
“Save 3-6 Months’ Expenses for Emergencies”
While this is solid advice for most, it’s not a rule you have to follow exactly. If you have steady income and investments you can access easily, a smaller emergency fund might work. On the flip side, freelancers or those with irregular income might want closer to 9-12 months saved. The point is to make you feel secure in your specific financial position.
“Avoid Credit Cards Altogether”
Credit cards often get a bad rep, but avoiding them entirely can hurt you in the long run. They’re a key tool for building credit, earning rewards, or even gaining protections that debit cards don’t offer. There’s no trick to using them responsibly—just pay your balance in full every month and you’ll never pay a dime in interest.
“Never Touch Retirement Savings”
While dipping into retirement savings isn’t ideal, sometimes it makes sense. For emergencies or to avoid racking up credit card interest, pulling from Roth IRA contributions could be a better option. Just know the rules—only your contributions, not the earnings, can be accessed penalty-free. Use this carefully and only if you’ve explored other options.
“Always Take the Standard Deduction”
If itemizing feels overwhelming, you could be missing out on savings. Mortgage interest, medical bills, and donations might mean bigger deductions. Crunching the numbers could lead to a larger refund. You don’t need to be wealthy to make itemizing work for you.
“Don’t Negotiate Prices”
Everything—from medical bills to utility contracts—is often negotiable. A five-minute phone call could uncover discounts or payment plans that save you hundreds. Even retail purchases or online orders sometimes have wiggle room, especially if you’re polite. The worst they’ll say is no, and the upside is worth asking.
Breaking Rules Can Work for You
Most financial advice isn’t set in stone. What works for one person may not work for another, and that’s okay. The key is knowing when sticking to the rules is holding you back. Personal finance is just that—personal. Think critically, make smart decisions, and you’ll find new ways to save and grow your money.
10 Money Rules You Were Taught That No Longer Work Today
Money management advice that worked 20 or 30 years ago is outdated in today’s fast-moving economy. You’ve got to rethink how you save, spend, and invest if you want to stay ahead. Here are 10 old money rules that don’t cut it anymore.
Read it Here: 10 Money Rules You Were Taught That No Longer Work Today
10 Money Rules Rich People Break (and Still Win)
Ever wondered why the rich often seem to break common financial rules and still manage to win big? They don’t play by the same playbook most people follow. Instead, they take unconventional approaches to money that often challenge traditional advice. Here are 10 financial “rules” the wealthy break—and how those breaks actually help them build long-term success.
Read it Here: 10 Money Rules Rich People Break (and Still Win)