Impulsive Spending 30 Day Rule

Impulsive Spending: The 30 Day Rule

One of the challenges for many people when it comes to their finances is controlling how much they spend. It’s easy to fall in the trap of impulse buying, but it can quickly become a bad habit, making it harder to save money and even causing debt.

We are here to share with you a rather handy technique to prevent too many regretful purchases.  It’s called the 30-day rule and it pretty much does what it says on the tin.

What is the 30-day rule?

The idea behind the 30-day rule, as you may imagine, is to wait for 30 days before you make any big, non-essential purchases. This helps reduce your impulse spending and increase your savings or emergency fund.

Purchases that don’t fit into your overall financial plan can also make you feel like any savings progress is easily slipping away.

If you are itching to treat yourself to the latest high spec TV, take a step back before committing to the big spend and possibly ending up regretting it. Wait for 30 days and if you still want to have the 4k Ultra HD experience in your living room, then go ahead.

Can you afford it?

It is also very important to make sure that you can afford the purchase in the first place, there’s no point getting yourself into debt. The cost of living is rapidly increasing so it’s important to ensure you have enough money to cover your essential outgoings before making lifestyle spends.

Tips to Apply the 30-Day Impulse Spending Rule:

  • When you feel the need to make an expensive purchase (whether it’s a whole new wardrobe or a larger purchase, like a vehicle), stop yourself. Walk away from the shop and leave it there.
  • Make a note of the item alongside its price and the date. Your goal is to think about the impact of the purchase (especially expensive ones) on your monthly budget and savings.
  • Keep this note visible to yourself. You could stick it to the fridge, just make sure it’s somewhere you’ll see it often.
  • Over the next 30 days, consider whether you actually need the item, or how badly you want it.
  • After the 30-Day period, make a decision. If the pros outweigh the cons and you still have the urge to splurge; go out and make your purchase. If not, leave the money in your account to contribute towards savings, investments, or your emergency fund.

Checking over your financial plan, and your goals for the future will also help in putting these impulse buys into perspective. Will these purchases make you happier and more fulfilled than that once in a lifetime holiday you are trying to save for?

If you would like any help with getting your finances in line or planning for the future, then get in touch with the Face to Face Finance team. We would be happy to help get you where you want to be!

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