What is the 30-Day Rule? Manage Your Impulse Spending
This strategy can be used to amplify your budget, help control your spending, and put your savings back on track.
What is the 30-Day Rule?
The 30-Day Rule works to reduce your impulse spending and simultaneously increase your savings or emergency fund. It allows you to reconsider those whimsical purchases we all make and eventually keep more of your hard-earned cash.
The Importance of the 30-Day Rule
The 30-Day Rule is important because it’s effective. The rule can change your attitude towards spending and saving, help you stick to a budget or even make progress on debt. It can weave into your overall financial plan and help control the urge to impulse buy.
The Difference Between the 30 Day Savings Rule
In a practical sense, this mechanism might also help you reduce credit card usage and bring down debt. By waiting 30-Days to make a purchase, you’ll have entered a new pay cycle and won’t be trapped into buying through a credit card.
How Does The 30 Day Rule Work?
The 30-Day Rule works by rewiring your financial habits and putting your priorities into context. As I’ve mentioned before, many better money habits might not be instantly attainable but require an intentional change over time.
Tips to Apply the 30-Day Impulse Spending Rule:
- When you feel the need to make a purchase (whether it’s a whole new wardrobe or a larger purchase, like a vehicle), stop yourself. - Make a note of the item alongside its price and the date. - Keep this note visible to yourself. - Over the next 30 days, consider whether you actually need the item, or how badly you want it.
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