There is no "one-size fits all" when it comes to personal finance. There aren't many areas of life where the same rules apply to everyone, and personal finance is certainly one where each person should develop their own financial roadmap.
During Sound Ideas, Edgar Norton, Director of Illinois State University's Institute for Financial Planning and Analysis, examined some commonly-held beliefs about personal finance.
"One of the rules of thumb is that you should have a cash emergency fund of 3-6 months of living expenses, so if say you need 4 new tires, you whip out that plastic, get your tires, then when the bill comes next month you just move that money over from savings to checking and bingo, the bill is paid and you're not paying that credit card company any interest," said Norton.
But this formula has many variables, said Norton, such as whether you're single or married, or how much monthly income you receive.
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