If you find yourself spending impulsively on things you don’t really need every time you get paid, it can be hard to break the habit. That’s why you need a financial reset, and the “7-Day Rule” might be your answer.
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This approach is straightforward: Instead of buying on a whim, you wait a week to decide if it’s truly what you want or need. By giving yourself that pause, you have a better chance of avoiding purchases you’ll likely regret. If you’re interested in making smarter spending decisions, here’s how the 7-Day Rule can help you stick to your budget.
Why People Find It Difficult To Stick to a Budget
The majority of people probably don’t relish the idea of making a budget and following it each month. However, those who do see the usefulness of it — especially when it comes to not spending more than they make. Even so, some people find it difficult to stick to their budget.
Michelle Delker, founder of The William Stanley CFO Group, said that budgeting challenges are mostly influenced by behavioral elements.
“Emotional spending, denial about debt, inability to fact-check financial myths and a lack of understanding about the mechanics of budgeting and personal finance are some key issues that impact effective budgeting,” she said. “Humans are also designed to seek immediate gratification, which can lead to impulsive spending behaviors and difficulty in long-term financial planning.”
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How To Use the 7-Day Rule
“The 7-Day Rule is a simple yet effective tool to curb impulsive spending by providing a waiting period after identifying a want or need before making the purchase,” said Delker. “This period allows individuals time to consider if the item is genuinely needed or if it’s simply a desire. The rule also helps to differentiate between needs and wants and builds a discipline of scrutinizing choices, leading to better decision-making and prioritization.”
Here’s how to implement it:
Whenever you want to purchase something that’s not in your budget, you start a 7-day “cooling-off” period.
During the following seven days, think about whether you really need to make the purchase and if it’s worth it to stray from your budget.
At the end of the seven days, ask yourself if you still want the item and whether its current price is worth it.
Benefits of the 7-Day Rule
Not only does the 7-Day Rule help you delay non-essential purchases, it also has a host of other advantages.
“The benefits of the 7-Day Rule include increasing money management skills, lowering the risk of overspending or falling into debt, fostering delayed gratification and improving the ability to distinguish between essential and non-essential purchases,” said Delker. “It encourages strategic spending by making individuals reassess their potential purchases, thereby ensuring that every dollar is optimized.”
It’s possible that regularly implementing the 7-Day Rule can make you a less-impulsive spender over time.
Possible Drawbacks of the 7-Day Rule
Just like other budgeting tricks, the 7-Day Rule has its disadvantages.
“On the downside,” said Delker, “the 7-Day Rule might create a barrier for people who overly scrutinize their spending habits, thereby causing undue stress and perhaps procrastination on necessary expenses. It might also not be suitable for times when immediate purchases need to be made.”
Variations of the 7-Day Rule
You don’t have to apply the 7-Day Rule for every non-essential purchase you think about making. Instead, you can choose to implement the 7-Day Rule for purchases that exceed a certain amount, such as $100 or over.
You can also increase the number of days, such as waiting 10 or 14 days, to give yourself a longer time to make a decision. Waiting a longer period of time could be especially helpful when considering more expensive purchases that will take a big bite out of your budget.
When Might the 7-Day Rule Not Be a Good Idea?
The 7-Day Rule is intended to be used as a cooling-off period when there’s a purchase you want to make but don’t necessarily need to make. In other instances, it likely won’t be as effective.
For example, Delker said you wouldn’t use this tool when you’re dealing with emergencies or expenditures that can’t be delayed, such as repairs, medical needs and utility bill payments.
Delker said that overall, the 7-Day Rule is not a one-size-fits-all approach and is most effective when paired with other financial management tools and adjusted toward the individual’s specific needs and context.
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This article originally appeared on GOBankingRates.com: The 7-Day Rule: This Is How You Stick To Your Budget
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