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? Reconsider.
- 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. 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.”
Source: Pure Wow