Rules Of Thumb For Saving Money

Have you ever listened to those self-made financial gurus give their advice on how to save money and build wealth? They all have their own tips and tricks on how to become financially successful. Recently, a discussion broke out on the popular social media platform, Reddit, that discussed the topic of money saving. The result was a robust list of rules of thumb for saving money. Since we can all benefit from this advice, we'll go over the top points of the discussion.

1. The Three Month Rule

- According to this rule, you should wait three months before purchasing anything you don't need. The idea is that it will prevent you from making any impulse buying decisions. Many of us have loads of things lying around our house that we rarely use. The three-month rule will stop you from purchasing things you lose interest in quickly. If after three months you don't want it anymore, you'll be glad you didn't buy it.

2. Walk The Item

- One Reddit user suggests walking with the item around the store a few times. More often than not, you’ll find yourself thinking it over and realizing you’d rather hang onto the money.

3. Convert The Expense To Days Of Retirement

- How much could you live off of comfortably per day in retirement? Let’s say $50/day. So, for every $50 you spend on things you don’t need, you have to put off retirement another day. If you convert the cost of the item you’re considering buying into how many hours you had to work to pay for it, you might see that it’s an unreasonable expense as well.

4. Make A Wishlist

- There are wishlist apps and the wishlist feature on Amazon that you can use. When you want something, add it to your wishlist so that you can think about it first.

5. Research 1 Hour Per Every $100

- Taking the time to research the items you're interested in buying is a great way to avoid impulse buying.

6. Get Rid Of Old Items First

- Make a rule of getting rid of old items before acquiring new things. It will help offset the cost of whatever you're buying, plus you won't accumulate junk.

7. Limit Yourself To One Item

- The idea here is that you can save money by compromising. Instead of buying everything on your wishlist, pick just one item, and say no to the rest.

So there you have it, seven rules of thumb that will save you from unwanted debt and buyers remorse.

What are some of your rules of thumb for saving money? Let us know in the comments!