The One Dollar Rule May Help You Stick To A Budget

September 21, 2020

Dreamstime

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Managing debt is tough. Many experts offer the advice to cut out unnecessary expenses, adhere to a super-strict budget and work yourself to the bone until you pay off your debt. While that advice makes sense, it isn't practical in many circumstances as it can make you feel worse when you do spend money, especially even when it was on something that bring you joy. Instead, you may want to try out the "$1 rule" of budgeting.  It works like this. If an item comes out to one dollar or less per use, you should buy it. For example, if a pair of shoes costs $60 and if you wear them a minimum of 60 times, it is something you may want to buy. But if you run across a winter jacket that is on clearance sale for $200, it is doubtful you'll wear it 200 times. No budget works if you continue to splurge on unnecessary items, so you will need to show restraint from shopping. But the $1 rule gives yourself permission to still buy things you use frequently, while preventing impulse purchases that might seem like a good deal.

SOURCE: Time

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