Episode: 323 - Transform Your Spending Habits with the 24-Hour Rule
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Imagine yourself standing in a store, holding an irresistible item. It feels like an absolute must-have, doesn't it? But what if you paused before pulling out your wallet? This is where the 24-hour rule comes into play—a simple yet effective technique to help you avoid impulsive, regret-filled purchases, keeping more money comfortably in your pocket. By waiting just a single day before buying non-essential items, you give yourself the space to reflect and determine if the purchase truly aligns with your needs and budget. Let's dive into how you can successfully leverage the 24-hour rule in your everyday life.
Understanding the 24-Hour Rule
The 24-hour rule is designed to curb impulsive spending, a common budget-buster. Statistics suggest that 40 to 80 percent of purchases are made on impulse. But with a simple strategy like the 24-hour rule, you can regain control. Here's how it works: whenever you're tempted to buy something not absolutely necessary, take a step back. Leave the store or close your browser window and wait 24 hours before deciding whether to make the purchase. This break gives you time to reconsider and ask yourself vital questions: Do you really need this? Will it add true value to your life? Can you afford it without slipping into debt?
The Benefits of Pausing
- Reduces Emotional Spending
We often spend based on emotions—whether stress, excitement, or boredom. A 24-hour pause allows these emotions to dissipate, enabling more rational decision-making. - Helps Stick to Your Budget and Goals
Giving yourself time helps keep your financial plans and priorities in focus. It's easy to deviate from your budget with impulsive buys, but waiting can keep you on track. - Builds Better Spending Habits
Each time you pause before purchasing, you're bolstering your self-control. Over time, this practice fosters mindfulness and intentionality in spending. - Reduces Clutter and Buyer's Remorse
How many items in your home go unused? The 24-hour rule minimizes adding unnecessary clutter and the regret that follows impulsive buying. - Saves Money
This obvious benefit can't be overstated. Less impulsive spending means more savings. Though savings might start small, they accumulate over time, potentially making a significant difference.
Implementing the 24-Hour Rule
Apply the Rule to Non-Essentials
Make it a steadfast rule to wait a day before making any non-essential purchase, ranging from clothing and gadgets to dining out.
Use a Shopping List
Shopping with a list minimizes impulse buying. Complement this approach using cash, which serves as an excellent accountability tool.
Avoid Browsing for Fun
Window shopping or online browsing often leads to impulse spending due to boredom. If you don't look, you won't be tempted.
Track Your Success
Keep a journal or note on your phone of items you wanted but didn't buy and the money saved by that decision. Observing your savings can be highly motivating.
Remember: It's Not Deprivation
The 24-hour rule isn't about deprivation; it's about making informed, smart choices. If, after 24 hours, you still believe the purchase is worthwhile, go ahead—it just means you made a conscious, deliberate decision.
By incorporating these strategies into your life, you might be surprised at how often those seemingly must-have items become less essential after a day.
Next time you feel the urge to buy, pause and give yourself 24 hours. You might be shocked at how frequently the desire fades, and you discover a clearer path to achieving your financial goals.
Resources Mentioned
The Totally Awesome Debt Freedom Planner https://www.debtfreedad.com/planner
To learn how to take the stress out of your finances so you can breathe again, follow this link: https://www.debtfreedad.com/lwp-masterclass-opt-in-page-podcast
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Transcript
Brad Nelson:
Hey. So imagine standing in a store holding an item that caught your eye. It feels like a must-have in the moment, but what if you paused before pulling out your wallet? Now, the 24-hour rule is a simple yet powerful technique that can help you avoid a lot of impulsive, regretful purchases and keep more money in your pocket. And by waiting just one day before buying anything that isn't essential, you give yourself time to reflect and decide if the purchase truly aligns with your needs and your budget. I'm going to be sharing some tips about how you can use the 24-hour rule in today's episode.
Brad Nelson:
Hey guys, welcome to today's show. I am Brad Nelson, founder of Debt-Free Dad. I paid off about $45,000 in debt. I've been debt-free now for more than 12 years. I've also been fortunate to help thousands of other people save and pay off tens of millions of dollars with the work that we do here at Debt-Free Dad. Now, guys, after listening to this episode, if you're ready to take things to the next level, you're ready to break free from living paycheck to paycheck, you want to reduce financial stress, build your savings and finally pay off your debt for good, but maybe you're just not quite sure where to get started. We've created some incredible free resources here at Defridad, and I'll be sharing some of those later on in today's episode.
Brad Nelson:
Now, have you ever made a purchase only to regret it later? Maybe it was a gadget, clothing or something that seemed like a great idea in the moment, until you get home and you realize you didn't really need it. If that sounds familiar, let me tell you you're not alone. Impulsive spending is one of the biggest budget busters out there. In fact, they say 40 to 80% of all purchases are made on impulse. But the good news is there is a simple strategy that can help you, and it's called the 24-hour rule. Now here's how it works. Whenever you feel the urge to buy something that isn't a necessity, I want you to pause, walk away from the store or close the browser tab and give yourself 24 hours before making the purchase. Now, during that time, think it over. Ask yourself do I really need this? Will it add value to my life? Can I afford it without going into debt? Often, that short pause is enough to prevent a lot of unnecessary purchases.
Brad Nelson:
Now you might be thinking how can waiting just one day, heck, and even, some cases, a few hours make such a big difference? Let's break down the benefits. Number one it reduces a lot of the emotion in the transaction. You see, we often spend money based on emotions, stress, boredom by the way, boredom for me is a big one Excitement, something great happened in your life, or maybe even peer pressure, waiting 24 hours it gives those emotions time to settle down. When the excitement fades, guess what? You can make more rational decisions. Number two is it helps you stick to your budget and to your overall plan. It also allows you to actually think about like what are you working towards? Number two is it helps you stick to your budget and to your overall plan. It also allows you to actually think about like what are you working towards, because I'm guessing the purchase that you want has nothing to do with that.
Brad Nelson:
Impulsive buys add up real quick, making it harder to stick to your budget. By waiting, you're more likely to stay on track and prioritize what truly matters in your life. Number three is that it builds better spending habits Now, every time you pause before buying what truly matters in your life. Number three is that it builds better spending habits Now, every time you pause before buying, you're strengthening your self-control. Over time, this habit helps you become more mindful and more intentional with your money. And number four it reduces a lot of clutter and buyer's remorse. I mean, how many things do you own that you rarely use? The 24-hour rule is going to help you avoid adding more clutter to your life and reduce the regret that comes with buying something that you really don't need. And, by the way, if you want a reminder of all the stuff you don't need and the stuff that you don't use on a regular basis, just take a few minutes and walk around your house and see how much stuff you have that just sits there and nobody touches it. It's eye-opening.
Brad Nelson:
Number five is it's going to save you money. This one's obvious, but it's worth mentioning Now. The less you spend on impulsive purchases, the more money you keep in your pocket. Now it might not seem like much at first, but those savings can add up very, very quickly. Now some people worry and they'll miss out on deals if they wait. But here's the thing Most limited time sales, they come around again and even if you do miss a discount, you're still going to win because you avoided spending money on something you didn't truly need.
Brad Nelson:
So how do you put this 24-hour rule into practice? Well, here are a few tips. Number one make it a rule for any non-essential purchase, whether it's clothes, gadgets, dining out, technology. Wait a day before buying anything. Use a shopping list also. When you shop with a list, you're less likely to buy things that you don't need. By the way, an extra tip on that list use cash. Cash is an excellent accountability tool. Also, avoid browsing and shopping for fun.
Brad Nelson:
Window shopping or scrolling through online stores often leads to impulsive spending because you're bored. If you don't see it, you're not going to be tempted. Also, get in the habit. We talk about this a lot on this podcast and also here at Deferredad is tracking your success. Keep a journal or a note on your phone where you list the items that you wanted to buy but didn't, or how much savings that you've had because you didn't make those purchases. Seeing how much money you saved is a great motivator.
Brad Nelson:
And finally, remember this the 24-hour rule isn't about depriving yourself. It's about making smarter choices. If depriving yourself it's about making smarter choices, if you wait a day and still feel comfortable about buying the purchase, maybe you go ahead and buy it, but the difference is is that you're going to know that you actually made a thoughtful, intentional decision and you didn't let the emotions get the best of you. So the next time that you feel that urge to buy something, I want to encourage you hit pause, give yourself 24 hours. You might be surprised how often that must-have item suddenly it doesn't even seem so essential and, honestly, the next day in a lot of cases in my own situation is that I'm not even thinking about that thing any longer.
Brad Nelson:
All right, guys, if you're ready to break free from living paycheck to paycheck and you want to reduce stress, you want to build savings, finally pay off debt for good, but you're not sure where to get started. Don't worry, we've got you covered here at Debt Free Dad, simplify my Money is sent each Sunday to your email. Now, simplify my Money is your step-by-step roadmap to better financial control. You're also going to learn easy-to-follow strategies to help you manage your money more effectively. You're going to also have stress-free money decisions by what you're gonna learn. These are gonna help you simplify your financial life with proven tips that actually work, and you're gonna gain the tools and the confidence to tackle your financial goals head on. Sign up for Simplify my Money by clicking the link at the top of the show notes. Hey guys, that's it for today's show. Thanks for joining us and we will see you guys on the next episode.
