10 Money Rules That Deserve To Be Broken

There’s no shortage of advice when it comes to managing your money. Some of it’s helpful, but a lot of it is outdated or too one-size-fits-all. Sticking to traditional money “rules” just because you’re supposed to can actually slow down your progress. Here are a few that are worth breaking, especially if they’re getting in your way.

Always Pay Off Your Mortgage Early

While being mortgage-free sounds great, rushing to pay it off isn’t always the best use of your money. If you have a low interest rate and no other high-interest debt, that extra cash may do more for you in investments or retirement savings.

Save 20% of Every Paycheck No Matter What

This rule works in theory, but life isn’t always predictable. Some months, hitting 20% just isn’t realistic—and that’s okay. It’s better to adjust your goals to fit your situation than to force a number and burn out.

Renting Is Throwing Money Away

Renting gets a bad rap, but for many people, it’s the smarter move. It offers flexibility, fewer responsibilities, and sometimes even lower monthly costs. Homeownership can be great, but it’s not always the best or most affordable option.

Only Buy Used Cars

Used cars used to be the budget-friendly choice, but today’s prices and financing options make it more complicated. In some cases, a new car with a solid warranty and low interest rate may be the better long-term deal.

You Shouldn’t Spend on “Wants” Until All Your Needs Are Covered

It’s smart to prioritize needs, but cutting out every non-essential expense can lead to burnout. You’re more likely to stay on track if you give yourself space to enjoy small things—like a concert ticket or a dinner out—without guilt.

Never Use Credit Cards

Credit cards can be risky, but avoiding them completely may limit your financial flexibility. With responsible use, they can build your credit, offer rewards, and protect your purchases. It’s about how you use them, not whether you use them.

Budget Down to the Last Dollar

Detailed budgets work for some people, but they’re not the only way to stay in control. If strict budgeting feels overwhelming, try a simpler method like tracking just your spending categories or using weekly spending limits instead.

Emergency Funds Must Be Three to Six Months of Expenses

That’s a solid guideline, but it’s not a hard rule. If your job is very stable or you have other sources of backup, you may not need quite that much. And if your income is inconsistent, you may need even more.

College Is Always a Good Investment

Higher education can open doors, but not all degrees have the same return. If you’re taking on massive debt without a clear path to a job that pays it back, it’s worth reconsidering. Trade schools, certifications, or work experience may offer more value.

You Must Max Out Retirement Accounts Every Year

It’s a great goal—but it doesn’t always make sense to prioritize retirement over everything else. If you’re struggling with debt or trying to save for a home, it may be smarter to focus there first. Your financial plan should fit your life—not the other way around.

The Best Money Rules Are the Ones That Fit You

Rules can be a helpful starting point, but personal finance is exactly that—personal. What works for someone else may not work for you. Don’t be afraid to break the rules if it means building a plan that actually supports your goals.

Common Budgeting Mistakes That Make You Feel Like You’re Saving (But Aren’t)

Budgeting is supposed to make your life easier and your wallet fatter. But sometimes, your efforts to save can backfire in ways you don’t even notice. You think you’re building a solid financial plan, but in reality, you’re just spinning your wheels. Here are some common budgeting mistakes that can trick you into thinking you’re saving when you’re not. Common Budgeting Mistakes That Make You Feel Like You’re Saving (But Aren’t)