Sticking to a budget often means cutting back on spending. It’s tough to say no to a night out with friends or to leave that awesome (but pricey) jacket at the store.
But, to hit big financial goals, sometimes you need to spend less.
Meet Bernadette Joy. She’s a finance coach and started Crush Your Money Goals. Along with her partner, they cleared a whopping $300,000 of debt in just three years. A big part of this achievement? They really dialed back their spending.
Her tips for saving could come in very handy today, with inflation soaring and the economy on shaky ground.
One bit of sage advice she shares is The $1 Rule. Bernadette’s $1 rule is straightforward. “If an item works out to a dollar or less each time I use it, I’ll buy it,” she shares.
This rule lets you still buy things you use a lot. But, it stops those spur-of-the-moment buys that might seem like a steal at the time.
This rule also helped her not fall for pricing tricks. Price anchoring, for instance, is when the first price you see sways your decision. Like seeing something was $100 but is now $75, you think you’re snagging a bargain, without really considering if you need it.
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