Do you find it difficult to save money? If yes, you’re not alone. You will learn What Is The 30 Day Rule For Saving because, Saving your money is something you need to do consistently to become a habit. You may risk falling off track if unexpected expenses come up.
Are you saving for a rainy day or saving for a home? Setting aside a percentage of your monthly income towards your saving goal can take time and effort.
So what can you do that would make savings easier for you? The 30-day saving rule. It’s one of the most popular financial saving methods that help you cut your spending and increase your savings. Read on to learn more about the 30-day saving trick and how to incorporate it into your financial life.
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ToggleWhat Is The 30 Day Rule For Saving?
The 30-day rule is an easy and simple-to-follow financial strategy that can help anyone improve their money management techniques. The rule is straightforward. When next you see an item you’d love to purchase, or you find yourself buying something you don’t need (also known as an unplanned impulse purchase), defer buying it for 30 days.
If at the end of 30 days, you still want to make that purchase, then you’re free to go for it. Otherwise, the money goes to your savings account if you decide the purchase isn’t worth it. This will help you increase your savings in no time. It’s that simple.
Does The Rule Help To Control Impulse Spending?
It may sound too good to be true, but the 30-day savings rule does work to help you save money. It is simple and forces you to wait for all your non-essential purchases so you can tame your emotions.
However, the rule would only work if you stick to your convictions and wait 30 days. So, the success of the strategy depends on you. The truth is that sometimes we think we need a multi-investment plan or an increase in income to build our savings. Meanwhile, all we need to do is to limit our spending.
It helps to have a budget that you follow monthly so that you can stay on top of your spending habits. The 30-day readjusts your spending habit and helps you detach emotions from purchases. By practicing the rule, you would get fewer items at the end of the month and save more too.
How To Make The 30-Day Savings Rule Stick
Do you want to incorporate this 30-day savings rule and become a money-saving guru? You can follow these steps.
1. Identify Needs And Wants
For the 30-day savings rule to be effective for any newcomer, they need to be able to differentiate between needs (essential purchases) and wants (nonessential purchases). That way, they can effectively identify what is and isn’t necessary.
Take time aside and create a list of your monthly expenses. These items automatically get approval under the new savings plan. You can now categorize every other thing under a “want” and subject them to the 30-day savings rule. It is called a budget and you can learn more here.
Later, when you’re back from shopping, you can decide whether those items are wants or needs and make a spending decision based on your findings.
2. Having A Savings Account
The 30-day saving plan helps you build your savings and accrue interest while waiting to see if your potential purchase is worth spending your money on.
So, instead of leaving the money in your regular bank account or your piggy at home, have a high-interest savings account, TFSA, or RRSP that helps you accrue interest as you think through buying the non-essential item. That way, the money you end up not spending can earn you money in the short term.
I prefer my Yotta Savings Account for a couple reasons. The first is that I can set up seperate bucket funds to save in. My favorite bucket fund is my vacation fund so most of my 30-day savings go into that one. The second reason I like Yotta Savings is because I can win some prizes with the free tickets I recieve when I deposit my money. I can win anywhere from .02 cents to $1,000,000.00 each day as the six numbers are chosen. It also promises no minimum balance requirements and secured funds by the Federal Deposit Insurance Corp (FDIC).
3. Set Up An Entertainment Fund
Waiting 30 days before making any non-essential purchase may seem too much for some of us. It works best for larger splurges like buying a new computer or car or going on vacation, not for smaller ones like a night out with friends at the cinema.
Putting a lot of restrictions on your spending habits may only make it more difficult to stick to your spending resolutions. You could use the 30-day savings rule for bigger purchases and consider setting up an entertainment fund from your earnings for little expenses. Yotta Savings works good for this. Yotta has a debit/credit card for your account. You can dip into it anytime you like without feeling any guilt. However, if you exhaust it quickly, you may still have to stay without making any non-essential purchases.
You can set the entertainment fund to be big or small, but we recommend setting aside a modest sum each week. Let’s face it, a coffee from starbucks every day adds up considerably. I drink my coffee from my own coffee pot. If you drop your three day a week coffee shop purchases, at a conservative $5 per cup, you will be able to save $15 each week. If you don’t drink coffee that’s okay, you get the point, stop splurging on stuff you don’t really need. Make a few simple adjustments and you will be able to save.
How Long Does It Take To Build A Habit?
According to experts, it takes anywhere from 60 to 90 days to become a habit. So, you need to delay impulse buying for at least 60 days for it to become an automatic habit. Remember the saying; “practice makes perfect”. I taught my kids that “Practice make better” we all fail and none of us are perfect. So when you break this rule don’t beat yourself up. However, get back on track and continue the 30 day rule.
As you begin the 30-day savings rule, the chances are high that you will stumble and probably buy something you don’t need. However, that’s not an excuse to stop. Instead, you can learn from your mistakes so you don’t repeat the same the following month. See how you fared after 30 days and set a new challenge for yourself in the next month.
Practice The 30 Day Savings Rule And Watch Your Savings Grow
It may sound so easy and too good to be true, but waiting 30 days before indulging your impulse purchase desires would save you a lot of money. The best part is that keeping it in a savings account ensures you earn interest short-term before arriving at your purchasing decision. When combined with a budgeting plan and other savings tools, the 30-day savings rule can make all the difference as you work towards achieving your financial goals. I hope we have answered your question, “What Is The 30 Day Rule For Saving?” for you.
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