How The $1 Rule Can Help You Take Control Of Your Finances
Buyers’ remorse affects nearly all of us. Sometimes deciding between a “need” and a “want” isn’t always back and white. Bernadette Joy, the founder of Crush Your Money Goals, has…
Buyers' remorse affects nearly all of us. Sometimes deciding between a “need” and a “want” isn’t always back and white. Bernadette Joy, the founder of Crush Your Money Goals, has a solution for this: The $1 rule.
The $1 rule is, “basically the idea that the cost per use of all non-essential purchases should be equivalent to $1 or less.”
For example, if a pair of shoes cost you $150, but you know you'll wear them 150 times before you're done with them, then buy them! If you'll only wear them a few times then you should probably reconsider the purchase. The rule is best applied to purchases that are in the "non-essential, non-special occasion, and simply nice to have" category: home goods, seasonal clothing, etc. In other words, don't even try to apply this rule to a wedding dress or you'll never be able to buy one!
Here are ways the $1 rule can be helpful for your finances:
- it helps you determine the worth of an item before you decide to buy it
- it also helps you expect and prioritize quality from the items you do buy and determine when something's just not worth it
