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Saving money isn’t easy but also unnecessary to be hard. One of the simple method on money saving is 30 day rule – an easy-to-follow strategy that can help cut impulse spending and increase your savings. So what is the 30 day rule and how to apply it to your financial plan? Let’s dive deep into this article with BestLifeTips.
It is better to save money than to spend it?
It’s a controversial question that can be understood in different ways. Some experts will encourage you to spend your money to save money, some say spending money and saving money is relative. Let’s dive deep into this and see what sounds more accurate to you.
Save money by spending money
This advice can seem to be an oxymoron, but several real-life experiences will guide you in the right direction to save a lot of money. Take your vehicle in for routine repairs, for example, and don’t miss your six-month dental cleaning and checkup. These prevention measures can hurt your wallet, but putting off maintenance—whether on yourself or on things you own—could contribute to a lot more pain and cost throughout the long run.
Spending money and saving money is relative
There is no right or wrong answer, so don’t think in absolute term. It depends much on your income rate to decide what you need to take more seriously. Your goal is not to die with the highest net worth possible; rather, you want to live a life that maximizes your own satisfaction and use money as a tool to serve you. As long as you maintain your net worth, you can spend money as you like.
In contrast, spending $70 on dinner and a movie is much too much if you have no savings, $25,000 in credit card debt, $15,000 in student loan debt, a mortgage, a car payment, and you need your family to support your expenses. This may be considered as irresponsible.
Benefit of saving money
While making the most of the present is essential, there are numerous explanations why you should see your financial future as well. Here are five ideas to consider.
- Financial safety
Unemployment may be terrifying, but it is something that all people will face at any stage in their lives. Having a savings cushion in order to cover your living costs as you look for a new career will give you real peace of mind.
- Emergency fund
We will also face unexpected bills at some stage in our lives, whether it be to patch our vehicle or replacing a faulty laptop. If you have investments, you can use any of them to pay bills instead of relying on a credit card or personal loan to make ends meet.
- Debt limitation
Having some money in reserves will help you limit the amount of debt you have. Instead of using a credit card, savings may be used to fund those expenses. This will undoubtedly reduce debt liability while still saving money that may have been invested on interest. Savings often enable us to stop taking out emergency loans in times of need, thus limiting current debt.
- Financial freedom
Savings provide one with peace of mind and allow him or her to enjoy financial independence. It is reassuring to know that there is a reserve fund that can be used if funds are required immediately. This contrasts with those that survive from one paycheck to the next. When an unforeseen cost occurs, they are immediately financially stranded.
What is the 30 day rule?
We’ve both been swayed by impulse buying. Maybe you go into a shop and see something you want to buy. Or maybe you come across an interesting advertisement for a new product or service that you want to explore.
If you find yourself wasting money depending on your feelings rather than what is in your budget, this can potentially lead to an impulse buy.
If you spend so much on impulse expenditures, they will potentially throw off your budget or even lead you to accumulate more debt. The 30 day binge buying theory comes in handy here.
To stop making an impulse buy, tell yourself you’ll think about it for 30 days. Write down the name of the object, operation, etc., where you find it, and how much it costs on a sheet of paper. Put this note on your refrigerator or somewhere visible in your house. Commit to considering the purchase for the next 30 days. Consider whether it is a genuine necessity or a need.
If you really want to buy it at the end of the 30-day period, go ahead and buy it. You’ll have saved money if you forgot about the item or found it wasn’t that important.
How to save money 30 day rule
Start putting money into a savings account when you’re dreaming about your impulse buy for the next 30 days. This is the money you would have paid if you had made the buy.
If you wish to make the order, you will withdraw the funds. However, the money will be deducted from your bank account, which means it will no longer be available for use in another savings target. This law makes it simple for you to invest reliably and reap the rewards of saving money. It also encourages you to increase your savings. Why is this so? And when you work hard to save money, it can be daunting to spend it on anything that isn’t truly necessary.
When all of your other savings and financial priorities are taken into account, the funds you put up for 30 days will provide you with a sense of protection to fund any emergencies or help you pay for that summer holiday.
Tips for saving money
Here are tips you can do to improve your chances of saving money. Not just for short-term targets like a trip, but also for long-term ones like saving for a deposit on a car:
- Start budgeting
A budget is at the core of every savings strategy. Budgeting allows you to prioritize your expenses and strike a balance between spending and saving over the course of a year. You can calculate any of your daily costs, such as rent or home loan, transportation, taxes, and utilities, by reviewing your credit card balances, bills, bank statements, and receipts.
These costs are then deducted from the wages – your full or part-time career or seasonal employment, savings, social insurance, child-support fees, pensions, and so on. It is recommended that you amend your budget at least once a year. Or more regularly if the conditions dramatically alter (e.g. getting or losing a job, having a baby). If you invest more than you receive, consider what you might eliminate or reduce.
- Pay your bills on time
Some businesses give their clients an early payment discount, which allows you to save money just by paying the bill on time. Others will have a late payment rate, which means you may be charged extra if you pay your bill late.
Simply paying the bills on time will help you save money. Simply set up an automated transfer (for daily payment amounts) or direct debit (for odd payment amounts) and the bills will be charged instantly on the due date every time.
If you use automated payments, make sure to review your bills per month to see if you need to top it up or raise your monthly payment number.
- Choose to be healthier
Quitting smoking, stopping takeaway, or skipping your morning flat white can be beneficial to both you and your savings goals. One less cup of coffee a day will save you about $25 per week, and if you smoke a cigarette a day and stop, imagine how much you can save per year. Seeing your investments grow in this manner will also inspire you to adhere to your health goals. It’s a win-win situation for you.
- Avoid a poverty mindset
These people tend to have self-limiting beliefs and to make decisions based on fear of loss or failure. In contrast, people with a prosperity or abundance mindset base their decisions on potential benefits.
- Stick with your plan
We all know that saving money takes a lot of determination, sacrifice, and concentration. However, once you have the hang of it, it gets much smoother—and your future self will thank you for starting saving early.
Take the time to read and track money management posts. Take a deep breath, sort out what’s not going for you, and begin anew whether you’ve quit saving or aren’t saving as frequently as you’d want. You’ll get there, eventually.
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Each penny counts when it comes to saving money. As a result, the sooner you begin saving, the sooner you can achieve your financial objectives. By understanding “What is the 30 day rule”, you will know how to control your impulses more effectively. Give BestLifeTips a thumb up if you find it helps. Return to visit us often for more useful financial tips.