We have researched a simple, yet remarkably effective strategy for limiting impulse spending and for helping you to save money. Yes, it is quite simple – if there is something you want to buy that is not an essential daily living expense, wait 30 days to make the purchase. At the start of the 30-day period, make a note to yourself of the reason that you need to make the purchase. Set an alert in your calendar. When you get the 30-day alert in your calendar, read the note to yourself again and reflect on whether or not you still would like to make the purchase.
We have found that a large percentage of the time, people have changed their mind on actually needing the new item, and they decide not to spend the money.
Key benefits of the 30-day savings rule
- It reduces impulse purchases by removing the emotional aspect of buying.
- It gives you time to evaluate if the purchase aligns with your financial goals.
- It helps you to distinguish between needs and wants.
- It helps you increase your savings, because money not spent on impulse buys can be saved instead.
Tips for implementing the rule
- Create a wishlist of items you’re considering buying.
- Use a dedicated savings account for the money you would have spent.
- Track your savings to stay motivated.
- Use budgeting apps to monitor your spending habits.
The 30-day savings rule is flexible and can be adapted to fit your needs. Some people prefer to use a 7-day or 14-day waiting period instead. The key is to introduce a “cooling off” period before making non-essential purchases.
But there are Challenges
It sounds simple in theory, but the 30-day savings comes with its own set of challenges. Here are some common difficulties people face when trying to follow this rule:
- Difficulty in Delaying Gratification
One of the main challenges is the struggle to delay gratification. The immediate pleasure derived from making a purchase of a cool gadget can be hard to resist, especially in a consumer-driven society where it is so easy to quickly get the thing that you want.
- Emotional Spending
Many people turn to shopping as a way to cope with emotions such as stress, boredom, or sadness. The 30-day rule requires emotional discipline, which can be particularly challenging if shopping is used as a coping mechanism.
- Forgetting the Rule
In the heat of the moment, it’s easy to forget the 30-day rule, especially if you haven’t fully integrated it into your financial habits. This can lead to slipping back into old spending patterns.
- Peer Pressure and Social Influences
Social situations and peer pressure can also make it difficult to adhere to the 30-day rule. For instance, if friends are making purchases or engaging in activities that require spending, it can be challenging not to join in and to wait.
- Unexpected Expenses
Life is unpredictable, and unexpected expenses can arise, making it difficult to stick to the 30-day rule. These unplanned costs can derail your savings efforts and make it harder to maintain the discipline required by the rule.
- Lack of Clear Financial Goals
Without clear financial goals, it can be hard to stay motivated to follow the 30-day rule. If you don’t have a strong reason for saving, the temptation to spend can easily outweigh the benefits of waiting.
- Frustration and Impatience
Waiting for 30 days can lead to feelings of frustration and impatience, especially if you are used to making quick decisions in your life. The rule can feel restrictive and difficult to follow.
- Complex Financial Situations
For those with complex financial situations, such as managing debt or multiple savings goals, the simplicity of the 30-day rule might not sync with their financial needs. This can make it less effective or harder to consistently implement.
Tips to Overcome These Challenges
- Set Clear Goals: Define what you are saving for, whether it’s an emergency fund, a vacation, paying off debt, or retirement savings.
- Track Your Progress: Use budgeting apps to monitor your spending and savings, which can help keep you motivated.
- Create a Wishlist: Maintain a list of items you want to buy and revisit it after the 30-day period. This helps in assessing whether you still want or need the item.
- Reward Yourself: Occasionally reward yourself for sticking to the rule. This can make the process more enjoyable and less restrictive.
By understanding and preparing for these challenges, you can better implement the 30-day savings rule and make more intentional financial decisions.
Remember
The goal is not to deprive yourself completely, but to make more intentional spending decisions. This rule can help you build better financial habits and work towards your long-term savings goals.
