The $/hrs Rule and Wish Lists

One of the best pieces of money-saving advice I've heard is the $100/48hour rule.

The concept: when you see something that you want but it costs more that $100 walk away and think about it for at least 48 hours before retuning to buy it - and only return if you decide that you still REALLY want it and can't get it from somewhere else cheaper and if you've saved enough for it.

I want to make a few changes to this rule for those of us who REALLY want to save money.
Change it to a lower amount of money eg $50, $25 or $10 or even $5, whatever seems fair to you and your budget (this might even depend on the type of product) and then try to extend the time further say 7days or a pay period.  Basically the rule is flexible to your needs but don't be too easy on yourself eg. if your rule is $10,000/5min you're really not going to use it (and if you will I think you should leave this blog immediately and go to the Red Cross website or World Vision).

A good way to avoid impulse spending is to keep a wish list.  You can then refer to this list when ever you are tempted to buy something that you don't NEED and see where it fits on you order of priorities.  For example you might have a beautiful cookbook worth $80 that you'd really like and you're tempted to buy a $40 vase... priority? how much would you use the vase? how much would you use the book? If they are equal, add the vase to the list.

Note: don't be confused by sale prices, just because it says 50% off doesn't mean you need the vase more.  If it wasn't worth $40 when you first saw it, it's not worth $40 when you know it used to be $80!

The wish list is also great when that time inevitably comes around that someone asks you "What do you want for your birthday/Christmas/mother's day etc.?" Just refer to your wish list and pick some thing of appropriate value - don't ask your uni-student sister to buy you a $600 stereo system! you might also want to consider the buyers taste, if you want something specific you might be best to leave that one for yourself to buy when you've saved for it - you might not want you uncle to buy you a new bedspread... at least not without some assistance!

You can make wish lists for different occasions, eg. new baby, new home, just because, gifts for friends/family whatever you want.

I've just installed a Google Chrome Extention for the Amazon Wish List feature which means that as I browse the net, I can add anything from anywhere to my list based back on Amazon.com.

I'm pretty excited about the idea - if you haven't worked it out already - I really like organisational gadgets!

See how you go with the $/hr Rule next time you're tempted.
xx