Updated: Mar 26
If you find yourself splurging your money on everything that you see, this rule can help you make wise choices with your finances.
The most important thing when it comes to your finances is to distinguish between your wants and your needs. Your needs such as rent, health costs, utilities, food, etc are important and they need to be looked after, regardless. Wants on the other hand are goods and services that are not necessary but what you desire or wish for. For example, food is necessary but having a meal at a fine dining restaurant isn't. Similarly, clothes are required but do we need it to be fancy designer clothes? The 30 day rule is a simple way to help you control your spending habits and get a better hold of your finances. Here are the steps to successfully implement this - 1. Stop yourself before you buy. Whenever you feel the desire to buy something - new clothes, new shoes or a new phone or just about anything else, force yourself to stop. Think if you really need it. Take a photo of the item if you're at the store and save it. 2. Make a note of it. Write it down on your phone using an app such as Evernote and note down everything about it - the price, description, discounts and offers at different stores etc. 3. Wait for 30 days. During these 30 days, look for price drops in the product. Search for reviews online and look for price cuts at different stores. More often than not, after a period of time, you may not really have the same desire for it that you had initially. Usually, people buy things that they do not need out of impulse or the fact that shopping and buying new things makes them happy.
At the end of 30 days, if you still have the urge for it, consider purchasing it. The 30-day rule works really well because you aren't actually denying yourself anything, you're simply delaying gratification. This rule has another advantage, it gives you a chance to research the item you want to purchase which helps in avoiding bad choices and wasted money. Related - 7 unhealthy habits that are costing you money! 7 types of budgeting for your personal finances! 7 warning signs you are living beyond your means! 7 tips on how to stop spending money on unnecessary things! How to create an emergency fund!
The Ultimate Guide To Getting Your Finances Back On Track is a book that aims to help the user in being smarter about their finances. This guide contains seven sections - Financial Goals, Expenses, Savings, Income, Loans & Debts, Budgeting, and Investments. Each of these sections explains everything you need to know about Personal Finance in simple terms. By the end of this book, you will have learned the fundamental principles that will help you in maximizing your income, decreasing your expenses and increasing your savings that will overall kickstart your process of truly building wealth.
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