Money Rules Of Thumb Explained

[jeffrey]

You've probably heard the "rule" that an engagement ring should cost about two months' salary. Whether you buy into this notion or not, you still might wonder, "Well, gross or net?"

In fact, that's a good question to ask about any number of financial rules of thumb. After all, there's a big difference between your salary on paper and your take-home pay.

If you make $60,000 a year, you gross $5,000 a month. But you take home considerably less after taxes and other payroll deductions such as 401(k) contributions and insurance premiums are taken out... [read more at money.cnn.com]