deepstash
Beta
What Is the 30 Day Rule (Stop Impulse Buying with This Simple Trick)?
The 30-Day Rule
One can develop healthy spending habits and avoid wasting money by using the simple 30-day rule: Whenever there is an urge to spend on something, just wait for 30 days.
One can buy whatever is required while making sure that the basics of personal financial management (budgeting and doing savings) are covered. The trick is to just wait for a month and then make an assessment of the planned purchase.
217 SAVES
994 READS
SIMILAR ARTICLES & IDEAS:
2
Key Ideas
The 50-20-30 rule
It is a budget rule to help people reach their financial goals. It states that:
- You should spend up to 50% of your after-tax income on needs and obligations that you must-have or must-...
Needs, wants and savings
- Needs: these are those bills that you absolutely must pay and are the things necessary for survival (rent or mortgage payments, car payments, groceries, insurance, health care, minimum debt payment, and utilities).
- Wants: these include all the things you spend money on that are not absolutely essential (dinner and movies out, vacations, electronic gadgets, etc.)
- Savings: this includes adding money to an emergency fund in a bank savings account, making IRA contributions to a mutual fund account, and investing in the stock market.
5
Key Ideas
Shopping Addiction
Compulsive shopping is when chronic, repetitive buying habits have serious consequences and become a disorder, similar to drug addiction. Conscious spending is one of ways we can o...
Overspenders
People do not even know that they are addicted to shopping and are unable to understand the problem.
Their confused relationship with money is looked upon by them as a symptom of the other problems of their lives. Many victims feel lost and are unable to control themselves out of the addiction consciously.
Warning Signs Of Shopping Addiction
- Shopping due to being angry, sad or disappointed.
- Shopping being the reason for problems or chaos.
- Having arguments with others regarding spending habits.
- Not leaving home without the credit card.
- Buying on credit what cannot be bought by cash.
- The act of spending causing anxiety and euphoria.
- Shopping with a gambling mindset.
- Feeling ashamed, embarrassed or guilty about buying useless stuff.
- Lying and juggling bills and accounts to be able to spend more.
10
Key Ideas
Keep everything as simple as possible
Don’t ever let your “future self”...
Your future self might have more income, but it’s also fairly likely that your future self might have less income and you’ll find yourself in a really bad situation.
Even if your future self is doing well, there are probably going to be other big expenses that you’ll want to deal with at that time, like buying a house.
Focus on...
- Building an emergency fund: set up an automatic weekly or monthly transfer from your checking account to your savings, then leave the savings alone until an emergency appears.
- Eliminating high-interest debt: Set up a simple debt repayment plan by organizing your debts by interest rate, then attempt to make a double payment on whatever debt has the highest interest rate.
- Saving for retirement: It will actually end up being a much smaller burden than you expect, lifted up by the pleasure of knowing that you’re securing your retirement.