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The $100/24 Hour Shopping Rule
A big part of living the Cheapskates way is thinking about where your money is going and deciding if it is going in the right places. It sounds simple, and in theory it is. But spending, or knowing where your money is going, isn't always as clear cut.
One thing you can do to always know where your money is going is to track it. That just means jotting down the amount and what you bought each time you buy anything. Tracking your spending can be eye opening, even for die-hard Cheapskaters. You'll see where all the little expenses are, and you'll have the knowledge to plug those leaks.
But what about the bigger purchases? Things like the new boots for winter or the new food processor or perhaps it is a set of sheets on sale - you may not need them right now but you will in the future. These things aren't necessities right now, they are more impulse purchases that will eventually save you money. Just not right now.
There are things you need right now too. It may be that your microwave has blown up. Perhaps a new doona would help you stay warm in bed. Maybe your hair dryer is on the fritz. All these things cost money to replace and that little plastic card you carry makes it very easy to just say "blow it" and take home the whatever it is straight away, and you'll worry about how to pay for it later.
An easy way to cut down on those expenses and the horrid ramifications is to wait 24 hours before you buy anything that isn't totally necessary that costs more than $100.
We call this the $100/24 hour rule.
When you are hit with the urge to spend, stop. Take a photo of the item or jot down some notes so you can find it again, add it to your Wants v Needs list, then go home and wait 24 hours. It will still be there tomorrow, and if it isn't, then perhaps you aren't meant to spend the money on it.
While you're waiting, ask yourself three questions:
1. Do I really need this "whatever" right now?
2. Do I have the money to pay for this "whatever" right now?
3. Do I already have something I can recycle, repurpose or reuse that will do the same job right now?
Many people buy things on impulse. By implementing a waiting period, you may find yourself saving a lot of money. Even if, after 24 hours, you decide to make the purchase, you've had time to think about the ramifications. Will it put you into debt? Do you really need it? Do you already have something that will do the same thing? Will you need to resort to using the credit card to pay for it?
Chances are that after waiting 24 hours you'll change your mind. Going back to the store will take time and energy, you may decide you don't really want it after all. You could even find something you already have that will do the same job (or better).
Anytime you get the urge to impulse spend, apply the $100/24 hour rule.
You may not be going to spend $100, but use the rule anyway. Chances are that by the next day you will have either found a free or much cheaper alternative, decided you don't really want the item anyway or have completely forgotten about it.
One thing you can do to always know where your money is going is to track it. That just means jotting down the amount and what you bought each time you buy anything. Tracking your spending can be eye opening, even for die-hard Cheapskaters. You'll see where all the little expenses are, and you'll have the knowledge to plug those leaks.
But what about the bigger purchases? Things like the new boots for winter or the new food processor or perhaps it is a set of sheets on sale - you may not need them right now but you will in the future. These things aren't necessities right now, they are more impulse purchases that will eventually save you money. Just not right now.
There are things you need right now too. It may be that your microwave has blown up. Perhaps a new doona would help you stay warm in bed. Maybe your hair dryer is on the fritz. All these things cost money to replace and that little plastic card you carry makes it very easy to just say "blow it" and take home the whatever it is straight away, and you'll worry about how to pay for it later.
An easy way to cut down on those expenses and the horrid ramifications is to wait 24 hours before you buy anything that isn't totally necessary that costs more than $100.
We call this the $100/24 hour rule.
When you are hit with the urge to spend, stop. Take a photo of the item or jot down some notes so you can find it again, add it to your Wants v Needs list, then go home and wait 24 hours. It will still be there tomorrow, and if it isn't, then perhaps you aren't meant to spend the money on it.
While you're waiting, ask yourself three questions:
1. Do I really need this "whatever" right now?
2. Do I have the money to pay for this "whatever" right now?
3. Do I already have something I can recycle, repurpose or reuse that will do the same job right now?
Many people buy things on impulse. By implementing a waiting period, you may find yourself saving a lot of money. Even if, after 24 hours, you decide to make the purchase, you've had time to think about the ramifications. Will it put you into debt? Do you really need it? Do you already have something that will do the same thing? Will you need to resort to using the credit card to pay for it?
Chances are that after waiting 24 hours you'll change your mind. Going back to the store will take time and energy, you may decide you don't really want it after all. You could even find something you already have that will do the same job (or better).
Anytime you get the urge to impulse spend, apply the $100/24 hour rule.
You may not be going to spend $100, but use the rule anyway. Chances are that by the next day you will have either found a free or much cheaper alternative, decided you don't really want the item anyway or have completely forgotten about it.
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