What Is the 30 Day Rule?
The 30 day rule is a simple strategy that has the power to help you control your spending and otherwise make the right financial choices for you. Essentially, if you feel the urge to buy something that’s non-essential, whether it’s in a store or online, the rule says:
A great next step is to write down what you wanted to buy, along with where it can be found, and its price. Date the document and then mark on your calendar when 30 days will have passed.
During that time frame, you might think about whether you really need the item or, if it’s a “want” rather than a “need,” whether you want to spend discretionary funds on it.
Sometimes, you’ll discover that you didn’t really want the item as much as you originally believed.
After 30 days have passed, if you still wish to purchase the item, then you can potentially do so, knowing that it’s no longer an impulse buy.
Rather, it’s a well thought out financial choice. It can also help your budget to price compare with different vendors after you’ve made your decision to buy.
Sometimes, you’ll discover that you didn’t really want the item as much as you originally believed. In those instances, you’ll often save money by preventing yourself from buying something that you didn’t desire that much, after all.
Needs vs Wants
The 30 day rule can be an excellent way to manage excess spending on items that are wants rather than needs. For example, if you’re out of toilet paper, that clearly goes into the needs category, and doesn’t fit the rule. You could shop for a better price, sure, but it’s a pretty necessary purchase.
If your car is almost out of gas and you’ve got to drive to work in the morning, the same concept applies. Yes, if you need to eat dinner and the cupboards are bare and the fridge is empty, you’ll need food (but not necessarily steak and lobster).
On the other end of the spectrum are luxury purchases—clearly wants. This could include a new piece of sparkling jewelry or a stylish pair of designer shoes in a brand new color (when you already have that same pair in four different hues). It could include another top-quality fishing pole—or two—in case friends stop by and want to fish with you.
There’s a middle ground, of course, where it may be tougher to decide if something is a need or want, and whether the rule applies. For example, you may have a big job interview coming up and there’s a really sweet suit on sale.
On the one hand, you may have an outfit that will work just fine, but on the other, this one may be more appropriate, giving you the confidence to wow the interviewers. In that case, it may make sense to think about the purchase for a day or two, rather than for a full 30.
In short, the 30 day rule is intended to help you to manage purchases that are discretionary, not for basic needs, health, or safety.