In an era of carefully curated timelines, visually appealing product photos, and excellent product reviews, it is very difficult to resist impulse buying. Retail therapy feels amazing, but constant overspending is dangerous as it robs you of a secure financial future.
Doom spending—spending impulsively in response to economic anxiety or negative life occurrences—has become more prevalent among Nigeria’s younger Nigerians. However, you can prevent this by implementing the 30-day savings rule to successfully curb overspending and build a better relationship with money over time.
What is the 30-day savings rule?
The 30-day savings rule is a smart and simple strategy to help you spend your money on important things. As the name implies, the 30-day savings rule suggests that when the itch to spend impulsively hits, try to wait 30 days before committing to the purchase.
Non-essential expenses are not the enemy; spontaneous spending is. Delaying gratification helps you filter this emotional response through rational thought, enabling you to make the best financial decisions.
The 30-day savings rule is a highly effective money management strategy. Not only does it allow you time to decide whether or not it is a worthwhile investment, but it also enables you to compare prices with other vendors. Then, if you are convinced that this purchase is necessary, you can incorporate it into your monthly budget and set aside funds for it.
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Why does the 30-day savings rule work?
Our emotions heavily influence many of our purchasing decisions. Implementing a mandatory 30-day waiting period allows you to reassess the situation carefully and make a more informed and intentional decision.
We’re constantly bombarded by clever marketing tactics, which makes it difficult to avoid making countless unnecessary purchases each day. However, the 30-day savings rule is effective because it:
- Gives you a sense of control: The 30-day savings rule helps you regain control of your spending. By taking charge of your spending habits, you’re bound to see an improvement in your financial, mental and emotional well-being.
- Helps you distinguish between needs and wants: Just because a purchase sparks joy does not make it a necessity. Delaying a purchase for 30 days will help provide clarity on what your wants and needs are, which is the first step to spending mindfully.
- Curb overspending: The 30-day savings rule can help you break the cycle of overspending and make your income last by identifying and eliminating wasteful spending habits.
- Encourages budgeting and financial planning: One of the great things about the 30-day savings rule is that it requires reevaluating your income, expenses, and future savings goals. This helps you manage your money by necessitating the creation of a budget or longer-term financial plan.
- Helps you save money: Instead of spending on a random purchase, this rule helps you delay gratification and save money instead. Bit by bit, you can accumulate savings over time to build an emergency fund or put towards future plans.
How to implement the 30-day savings rule
Before implementing the 30-day savings rule, please remember that you need to survive before you save, so do not postpone essential expenses like food, medication, electricity, and other important bills.
Once you have been able to identify your essential and non-essential expenses, go ahead and do the following:
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- Create a wishlist:
Whether digital or physical, create a list of everything you almost purchased, including dates and costs. This is the simplest way to reflect on your desires after 30 days (or more) and determine which purchases will benefit you in the long term.
A wishlist is also a great way to calculate the value of these almost-purchases to decide how best to spend that money. And in the future, you can look back on this list to see how far you have progressed in your financial journey.
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- Make saving goals:
Saving can prove difficult without a goal to work towards, so a good trick for reducing overspending is to create Targets for yourself. Fun Targets like birthdays and vacations or more serious Targets like school fees or childbirth can help you manage your money better and limit overspending.
- Use Labels:
PiggyVest’s Labels is a fantastic budgeting tool that allows you to allocate funds for all your expenses. With Labels, you can create as many wallets as necessary and limit your spending to those allocated funds. It also helps you track your recurring expenditure to narrow down the non-essentials.
- Save instead of buying:
Rather than making that impulse purchase, consider putting the money away in a PiggyVest savings wallet. Redirecting money to your Flex Naira wallet for 30 days or creating a 30-day Safelock will earn you anywhere from 12% to 22% per annum, depending on the duration of your savings, while you take the time to make up your mind.
- Have miscellaneous funds:
A great budget isn’t complete without miscellaneous funds, as you do not want to feel stifled by it. With these funds, you can pay for the occasional convenience or small treats such as dining out, Uber rides or a movie date. This also makes it easier to postpone other unbudgeted or unjustifiable expenses for longer.
- Find cheaper alternatives:
If you must make a purchase, take the time to hunt for discounts, sales, or even off-brand versions of the same item. During this window, you may lose that initial impulse as you reconsider whether the purchase is truly necessary. It also helps you prevent impulsive overspending and buyer’s remorse.
The bottom line
The 30-day savings rule is a straightforward and effective strategy for curbing overspending and prioritising financial goals. By delaying gratification, you can build mindful and sustainable money habits and achieve financial success in the long run.
