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What Is the 30 Day Rule (Stop Impulse Buying with This Simple Trick)?
Steps For Implementing The 30-Day Rule
- Review your spending, taking an inventory of all your purchases. This provides a better understanding of where the money goes.
- Start to look at what all spending can be curbed (it will be a lot) and one can start small, like by not buying the candy at the grocery store while waiting in line, or not ordering pizza.
- After curbing junk food purchases, one can work towards clothes, shoes, video games, and the biggest culprit of them all: The Urge to upgrade your smartphone.
- Write down the item you feel like buying and place it where you can reflect on the purchase, setting yourself a goal of waiting 30 days.
- Stay committed and challenge yourself to buy debt-free whenever you can, after you wait 30 days.
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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.
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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...
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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.
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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.