{"id":6984,"date":"2024-11-30T03:52:50","date_gmt":"2024-11-30T09:52:50","guid":{"rendered":"https:\/\/citystuff.com\/chicago\/?p=6984"},"modified":"2024-11-30T03:52:50","modified_gmt":"2024-11-30T09:52:50","slug":"applying-the-1-rule","status":"publish","type":"post","link":"https:\/\/citystuff.com\/chicago\/2024\/11\/30\/applying-the-1-rule\/","title":{"rendered":"Applying the &#8220;$1 Rule&#8221;"},"content":{"rendered":"<h1>Applying this \u2018$1 rule\u2019 is the secret to guilt-free shopping, expert says. Here\u2019s how it works<\/h1>\n<h2>When Bernadette Joy and her husband were paying off their $300,000 in debt, she didn&#8217;t nix shopping altogether.<\/h2>\n<ul>\n<li>Instead, she came up with her own measure for cost per use that helped her make better decisions.<\/li>\n<li>This holiday season, that same method may help consumers avoid regret purchases.<\/li>\n<\/ul>\n<p>When Bernadette Joy graduated with an MBA in 2016, she and her husband had around $300,000 in debt, including student loans and mortgage balances.<\/p>\n<p>By 2020, they were debt free.<\/p>\n<p>As Joy sought financial independence, the financial tips she found \u2014 &#8220;eat beans and rice; don&#8217;t have any fun; shopping is terrible&#8221; \u2014 didn&#8217;t resonate with her.<\/p>\n<p>Instead, Joy found more creative ways to shop without feeling guilty. That led her to come up with a method she calls &#8220;The $1 rule,&#8221; which she details in her new book, &#8220;Crush Your Money Goals.&#8221;<\/p>\n<p>&#8220;The $1 rule is my twist on cost per use or cost per wear,&#8221; said Joy, who is a financial coach and debt repayment expert. &#8220;But I simplified it even more to say, it&#8217;s OK to buy something if it comes out to $1 per use.&#8221;<\/p>\n<h4>More from Personal Finance:<\/h4>\n<p>This charitable giving strategy provides the biggest tax break<br \/>\nHow to initiate money conversations with aging parents <br \/>Early retirement comes as a surprise for many workers<\/p>\n<p>For example, when a friend was looking to buy an expensive couch, Joy used the $1 rule to help him figure out it would be worth it as long as he kept it for five years and used it daily.<\/p>\n<p>The rule has also helped Joy personally avoid buying low-quality items or things she won&#8217;t use often, she said.<\/p>\n<p>She had her eye on a warming dish to use when entertaining, for example, and realized the $30 cost wouldn&#8217;t justify the two times per year she would likely use it.<\/p>\n<p>The &#8220;$1 rule&#8221; can also be very helpful during the holidays when you are trying to buy gifts for people they will really enjoy, she said.<\/p>\n<p>Joy said she uses the rule whenever she buy gifts for people, thinking, &#8220;Is this something that they would use a lot?&#8221;<\/p>\n<h4 class=\"wp-block-heading\">Impulse purchases can lead to regrets<\/h4>\n<p>A record 183.4 million people are expected to shop both online and in-person in the five days from Thanksgiving through Cyber Monday this year, according to the National Retail Federation.<\/p>\n<p>More than half of consumers \u2014 57% \u2014 say they plan to shop then because of deals that are too good to pass up, the industry organization found in a recent survey.<\/p>\n<p>Good deals can lead to impulse buying, according to recent research from Bankrate, which found 54% of adults made at least one spur-of-the-moment purchase last holiday season.<\/p>\n<p>However, those impulse purchases can lead to regrets.<\/p>\n<p>A separate Bankrate survey on online purchases prompted by social media found 57% of consumers regretted at least one of those transactions.<\/p>\n<h4 class=\"wp-block-heading\">Take a pause before buying<\/h4>\n<p>To help avoid expensive purchases that may lead consumers to carry credit card balances from month to month, it can help to take a moment and pause before making a purchase, Rossman said.<\/p>\n<p>Meanwhile, other shopping tips can help you get the most for your money this holiday season.<\/p>\n<p>Choosing an experience instead of material things can make the holidays more memorable, Joy said. For example, instead of a &#8220;Secret Santa&#8221; gift exchange, friends can plan a group outing.<\/p>\n<p>While retailers may put on the pressure with time-sensitive offers, &#8220;there&#8217;s a good chance there&#8217;s going to be another sale behind it,&#8221; Rossman said.<\/p>\n<p>When making a purchase, be sure to pay attention to whether the total cost works within your budget, particularly if you&#8217;re using an installment plan like buy now pay later, Rossman said.<\/p>\n<p>And be sure to compare to see whether a particular retailer is truly offering the best deal, he said. Price trackers like Camel Camel Camel for Amazon can help show you how a sale compares.<\/p>\n<h4 class=\"wp-block-heading\">Conclusion<\/h4>\n<p>By applying the $1 rule, consumers can make more informed purchasing decisions and avoid regretful impulse buys. Remember to take a moment to pause before making a purchase, and consider alternatives like experiences over material gifts.<\/p>\n<h4 class=\"wp-block-heading\">FAQs<\/h4>\n<p>* What is the $1 rule?<br \/>\nThe $1 rule is a method for evaluating the cost-effectiveness of a purchase by dividing the total cost by the number of times you expect to use the item.<br \/>\n* How does the $1 rule work?<br \/>\nTo use the $1 rule, simply divide the total cost of the item by the number of times you expect to use it. If the result is $1 or less, the item is likely a good value.<br \/>\n* Can the $1 rule be used for gift-giving?<br \/>\nYes, the $1 rule can be applied to gift-giving by asking, &#8220;Is this something that the recipient would use a lot?&#8221;<br \/>\n* What are some other shopping tips for the holiday season?<br \/>\nOther shopping tips for the holiday season include choosing experiences over material gifts, taking a moment to pause before making a purchase, and comparing prices to ensure you&#8217;re getting the best deal.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Applying this \u2018$1 rule\u2019 is the secret to guilt-free shopping, expert says. Here\u2019s how it works When Bernadette Joy and her husband were paying off their $300,000 in debt, she didn&#8217;t nix shopping altogether. Instead, she came up with her own measure for cost per use that helped her make better decisions. This holiday season, [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":6985,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[31],"tags":[],"class_list":{"0":"post-6984","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-shopping"},"jetpack_featured_media_url":"https:\/\/i3.wp.com\/media.nbcchicago.com\/2024\/11\/108069505-1732893653471-gettyimages-2186796634-AFP_36NL9JD.jpeg?quality=85&strip=all&resize=1200%2C675&w=1200&resize=1200,675&ssl=1","_links":{"self":[{"href":"https:\/\/citystuff.com\/chicago\/wp-json\/wp\/v2\/posts\/6984"}],"collection":[{"href":"https:\/\/citystuff.com\/chicago\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/citystuff.com\/chicago\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/citystuff.com\/chicago\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/citystuff.com\/chicago\/wp-json\/wp\/v2\/comments?post=6984"}],"version-history":[{"count":1,"href":"https:\/\/citystuff.com\/chicago\/wp-json\/wp\/v2\/posts\/6984\/revisions"}],"predecessor-version":[{"id":6986,"href":"https:\/\/citystuff.com\/chicago\/wp-json\/wp\/v2\/posts\/6984\/revisions\/6986"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/citystuff.com\/chicago\/wp-json\/wp\/v2\/media\/6985"}],"wp:attachment":[{"href":"https:\/\/citystuff.com\/chicago\/wp-json\/wp\/v2\/media?parent=6984"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/citystuff.com\/chicago\/wp-json\/wp\/v2\/categories?post=6984"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/citystuff.com\/chicago\/wp-json\/wp\/v2\/tags?post=6984"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}