Use This $1 Rule Before Making a Purchase

The rule works by using a cost-per-use calculation.

Whether you’re getting last minute Christmas shopping done or shopping for yourself, it can be hard not to overspend and break the budget. Finance experts suggest following the $1 rule to make smarter spending decisions. The rule works by using a cost-per-use calculation, meaning you should aim to spend no more than $1 for each time you’ll use an item. Before making a purchase, divide the total cost by the number of anticipated uses. For example, if comfortable walking shoes cost $120 and you plan to wear them 300 times a year, 120 divided by 300 is 40 cents per use, making it money well spent!