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According to somebudgetexperts, that approach might even hurt your wallet in the long run.
Personal finance influencer Bernadette Joy recommends an alternative method calledthe $1 rule.
It doesnt replace careful budgeting, butit can help you spend more thoughtfully.
What Is the $1 Rule?
A $10 item should get at least 10 uses.
A $100 item should get 100 uses, and so on.
The rule is easy to apply.
Anytime you want to buy something, ask yourself how many times youll use it.
This is an effective way to avoid purchases that will detract from your financial goals without much benefit.
And classic items stay fashionable longer, so you dont need to sacrifice style for budget.
Buying Higher-Ticket Items
The $1 rule works well formore significant purchases, like appliances and technology.
It motivates you to consider what you need from a purchase and whats worth the cost.
Take your phone, for example.
Instead of falling prey to advertising, save for your next model and buy one that will last.
Handling Exceptions
The $1 rule applies primarily to discretionary consumer spending.
As financial columnist Lesley-Anne Scorgie recently toldToronto Starreaders, some things have more value than their number of uses.
In this case, think of the spirit of the $1 rule.
Will your vacation memories last longer than it took you to pay for the trip?
Its about using your money foritems and experiencesthat add value to your life.
The $1 rule lets you spend money on things that bring you joy.
Theres even room for exceptions for purchases that significantly improve your life.
If you dont, its not a forever no just a no until youve saved up.
Work the purchase into your budget.
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