Have you ever bought something in the heat of the moment and regretted it afterward? Perhaps you didn’t actually need that new boat, designer purse or timeshare.
The 30-day savings rule is a money-saving technique that aims to curb impulse purchases that lead to regret. In short, it suggests that when you get the urge to buy something, you wait at least 30 days before following through.
But can it help with overspending? Here’s what financial experts say.
How the 30-Day Savings Rule Can Help You Stop Overspending
By waiting 30 days before making an unplanned purchase, you’ll have time to assess if the item is really something you want or need.
[Related:Wants vs. Needs In Your Budget — How to Tell the Difference]
“Impulsive buying can often lead to acquiring items that aren’t truly needed. By implementing a 30-day waiting period, you give yourself the chance to make more thoughtful decisions and cut down on unnecessary expenses,” Uziel Gomez, certified financial planner and founder of Los Angeles-based Primeros Financial, said in an email.
While a purchase can seem like a great idea in the moment, that may change when you take a step back and consider all your other needs and wants.
“There have been so many times where I’ve seen a product that I felt I ‘needed’ right then and there. But then I decided to wait and found that before the wait time had even elapsed, I didn’t want that item anymore,” Grace Moser, founder of the women’s lifestyle blog Chasing Foxes, said in an email.
“The 30-day savings rule has saved me thousands of dollars and the stress that comes when your home starts to get cluttered with rarely used items,” Moser said.
What to Do During the 30-Day Waiting Period
If you implement the 30-day savings rule, use the time to consider if the purchase aligns with your household’s overall financial goals and priorities.
“For instance, if you value adventure and are saving for a major vacation, evaluate whether buying a designer item might hinder your ability to afford that trip. This approach, known as opportunity cost, helps you make more informed decisions by weighing the trade-offs involved,” Gomez said.
Also, consider how long it will take to earn back the amount you want to spend.
“As someone who used to be a frequent impulse shopper and mindless spender, I understand how tempting it can be to buy something on the spot,” Walli Miller, a New York-based financial coach at Financially Thriving, said in an email.
[Read: Inside the Psychology of Overspending and How to Stop.]
She now likes to ask herself one simple question, “Is this item worth X hours of work?”
And if you realize you want to make the purchase, you can spend the remainder of the waiting period preparing.
Andrea Woroch, a consumer and money-saving expert, says the wait time can allow you to research products, comparison shop and save up for the purchase so you don’t rack up debt.
Should You Wait 30 Days on All Purchases?
The 30-day rule can be helpful but may not be the best fit for all situations or people.
“Thirty days is a long time for many people, especially those who are used to buying what they want when they want. Waiting a month can be unrealistic or feel too constrained, both of which can turn people away,” Woroch says.
[READ: How to Be Financially Responsible — And What It Means]
A good alternative can be to opt for a shorter waiting period.
“I found that a 72-hour rule works well for smaller purchases less than $100. It gives me enough time for the initial excitement to fade, and often, I realize I don’t need or want the item any longer,” Walli said.
Ryan Zabrowski, certified financial planner at Krilogy Financial, also prefers a shorter waiting period.
“Are you the sole financial decision-maker? If not, instead of 30 days, take 30 minutes to consult your partner. He or she may offer some wisdom to prevent you from doing something you will later regret,” Zabrowski says.
The key is to create some space between the impulse and the decision. Woroch says that even 24 hours is often enough time to let the shopping urge die down.
The Bottom Line
While waiting the full 30 days to make a purchase may not always be necessary or beneficial, the idea behind the rule is worth considering. Developing a habit of waiting before making purchases can curb overspending by eliminating impulse buys.
But what if you miss the rush of impulse shopping?
“If you often shop to make yourself feel better or to treat yourself as a reward, explore other ways to manage your emotions. Call an old friend to vent/talk, go for a walk or plan a gathering with family at your house to celebrate a win instead,” Woroch says.
You could also set aside a limited amount of money each month for impulse buys. That way it’s planned and part of the budget but can still feel spontaneous.
If your goal is spending control, Woroch also recommends unfollowing people on social media who influence excessive purchases, deleting online payment information and using cash when shopping in person.
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How the 30-Day Savings Rule Can Help You Stop Overspending originally appeared on usnews.com
