Here’s why the $1-per-use rule works better than a budget.
Transcript:
Bernadette Joy Cruz: So the dollar rule actually – I’ll use this jacket as an example. So I found this jacket on sale. It was I think $30 and marked down. So I’m like I love all these like clearance sales. But the dollar rule simply says that if you buy something it’s usually clothing like household items, tech items, furniture, stuff like that if you try to make it $1 per use, then I say green light, go ahead and buy it. Don’t overthink it. So for example this jacket was $30. Like, is it possible for me that I will wear it 30 times? And even if I don’t actually wear it the full 30 times, the whole point is like, am I going to get enough use out of it that I should actually go buy it. What happened with the dollar rule is that a lot of other personal finance folks were like shaming you and like slapping you on the wrist and saying, don’t buy these things. The intent of the dollar rule is actually to give you permission to buy things, as long as you use them well.
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