To address this, many recommend implementing the 30-day rule.
What is the 30-day rule?
The 30-day rule is a way to save money by delaying gratification and forcing yourself to stop impulse purchases. It also helps you make smart spending decisions by forcing you to be rational when you feel the urge to spend.
The rule requires you to give yourself 30 days to think about pushing through a purchase you want but may not need – even when you have enough money in your savings account.
For instance, you may consider buying the latest phone model to replace your three-year-old phone after a visit to the shops. However, the specific model that caught your eye is retailing at almost $1,000.
You may be tempted to buy the phone right away, especially if the salesperson tells you that they have limited stocks left, but the 30-day rule demands that you stop and do the following things:
- Leave the store but remember what the item is, how much it costs and, if applicable, the details or specifications. Add the date you found the item and if there were any discounts available from the store.
- Note down all the details you remember about the item on a piece of paper and place this note somewhere you can see when you get home.
- Think about whether you really need the specific item and if it’s worth the price for the next 30 days.
- Search for alternatives to the item and better deals from other stores.
If you still want the item after 30 days, then you can go for it. However, you should only buy it using cash or your debit account.
Don’t use a credit card unless there is a good deal (i.e. zero interest, rebates or mileage points) and you can pay off the amount in full with each billing cycle.
The advantage to following the 30-day rule is that, since searching for alternatives and better deals are a part of the process, you may be able to find a better item at a lower price or the same item with a better deal at another store.
It also allows you to settle your thoughts and, with consistent practice, it can help kill the urge for impulse buying.
Explore Nest Egg for more ideas on how to spend smart.
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