Applying this rule is the secret to guilt-free shopping, says expert

When Bernadette Joy earned an MBA in 2016, she and her husband had about $300,000 in debt, including student loans and mortgage balances.

In 2020, they were debt free.

As Joy searched for financial independence, the financial advice she found – “eat beans and rice; don’t amuse yourself; shopping is terrible” – didn’t appeal to her.

Instead, Joy found more creative ways to shop without feeling guilty. This led her to come up with a method she calls “the $1 rule,” which she details in her new book, “Crush Your Money Goals.”

“The $1 rule is my version of cost per use or cost per wear,” said Joy, a financial coach and debt repayment expert. “But I simplified it even more by saying you can buy something if it comes to $1 per use.”

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For example, when a friend was looking to buy an expensive couch, Joy used the $1 rule to help him determine that it would be worth it as long as he kept it for five years and used daily.

This rule has also helped Joy personally avoid buying low-quality items or things she won’t use often, she said.

She had her sights set on a warming dish to use for entertaining, for example, and realized that the $30 cost wouldn’t justify the twice a year she would likely use it.

The “$1 rule” can also be very helpful during the holidays when you’re trying to buy gifts for people they’ll really like, she said.

Joy said she uses the ruler whenever she buys gifts for people, thinking, “Is this something they would use a lot?”

A record 183.4 million people should shop online and in person in the five days from Thanksgiving to Cyber ​​Monday this year, according to the National Retail Federation.

More than half of consumers — 57% — say they are considering shopping at this time because of deals that are too good to pass up, the industry organization found in a survey. recent survey.

Good deals can lead to impulse buyaccording to recent research from Bankrate, which found that 54% of adults made at least one impulse purchase this past holiday season.

However, these impulsive purchases can lead to regret.

A separate inquiry into discount rates on online purchases caused by social media, 57% of consumers regret at least one of these transactions.

There’s nothing wrong with treating yourself every once in a while, as long as you’ve made room in your budget ahead of time, said Ted Rossman, senior industry analyst at Bankrate.

“You don’t want to still be paying for this holiday season a year from now,” Rossman said.

At this point, 28% of people are still paying off credit card debt during the 2023 holiday season, NerdWallet found.

Overspending may still be a reality for many households, as prices have increased by 20% since the start of 2021, while wages have only increased by an average of 17% over this period, he said. declared.

While interest rates went downthe average credit card rate is still about 20.4%, according to Rossman.

To avoid costly purchases that could cause consumers to carry their credit card balances from month to month, it can help to take a moment and pause before making a purchase, Rossman said.

In the meantime, other shopping tips can help you get the most for your money this holiday season.

Choosing an experience over material things can make a vacation more memorable, Joy said. For example, instead of a “Secret Santa” gift exchange, friends can plan a group outing.

Even if retailers can push with time-sensitive offers, “chances are there’s another sale behind it,” Rossman said.

When you make a purchase, be sure to check if the total cost fits your budget, especially if you’re using an installment plan like buy now, pay later, Rossman said.

And be sure to compare to see if a particular retailer actually offers the best deal, he said. Price trackers like Camel Camel Camel for Amazon can help you compare a sale.