Personal Finance
How to Use the 37% Rule for Better Personal Finance Decisions
By Financial Horse  •  October 23, 2024
If you’ve gone house hunting, these thoughts are familiar as you enter another property: Is this the one? Should I keep looking? What if the perfect home is just around the corner? This is a familiar dilemma for house hunting and other major personal finance decisions. It also belongs to a class of mathematical problems known as the theory of “optimal stopping,” which is the problem of choosing a time to take a given action. Fortunately, there’s an answer to maximise your chances of getting the best outcome. Thirty-seven percent. This article was written by a Financial Horse Contributor.  The 37% Rule The 37% Rule defines a simple series of steps for solving this problem. It’s a simple yet powerful tool for better decision-making. Here’s how it works. Imagine you’re searching for a new property. You’ve gone through listings and lined up viewings. Assume listings are so popular you can’t compare options. You can either buy the property...
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By Financial Horse
Financial Horse was founded with a simple goal – To provide high quality financial commentary, in plain English. He is a firm believer in Einstein’s quote that “If you can’t explain it to six-year-old, you don’t understand it yourself.” Too much of finance is shrouded in complex jargon, and Financial Horse aims to demystify financial investments.
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