Money
While also leaving room for the occasional treat.
Its easier than you think to justify an expensive purchase or arandom splurge.
You had a bad day, you work hard, you deserve a treat, etc.
And you know what?
All of the above is true.
If you make $50,000 a year, that would mean anything over $500 requires a second look.
or Will I actually use it?
and even Will I regret paying for this once the shine wears off?
Hereswhy the 1% rule can help, according to a finance expert.
If youll actually use the purchase, thats fine.
If its your birthday and youve been eyeing an item for years, OK.
The 1% rule can also apply toyour savings account.
Think of it as a gift to your future self!
The 1% Rule In Action
Lets say you make $70,000 a year.
One thing to keep in mind?
The 1% rule shouldnt be used every day or even regularly.
Its not a rinse and repeat kind of thing.
It has to be used very sparingly.
Who Should Try The 1% Rule?
It also works if you have friends who all have higher incomes.
We see a friend buying something pricey, and naturally, we want it ourselves.
But when we apply the one percent rule, we realize it may not be something in our budget.
The math will never lie to us.
Running the numbers gives you the data tostay true to your budgetand priorities.
Source:
Bobbi Rebell, CFP, certified financial planner, personal finance expert atCardRates
