Plastk Blog: Credit Tips & More

Credit Tip Tuesday #94-Your Guide To Use 30 Day Rule To Avoid Overspending

Written by Plastk #CTT | Nov 1, 2022 1:00:00 PM

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Expenses are one of the major parts of your life. You can’t escape them in any way possible.

However, just like everyone else, things start to take a rude turn when your spending gets out of hand.

But you can keep your expenses from inflating or avoid them crumbling your financial goals.

Yes, you read it right! That’s achievable. However, isn’t that for the experts? Absolutely not!

That’s why we’ve curated this guide for you. :p Nothing complicated here. ;)

Presenting the 30-Day spending rule to budget your money, manage your credit card, and control your ‘out-of-control’ finances.

You never know; you might also improve your possibilities of gaining a much-desired loan!

So, let’s get the most out of this guide and get a hold on your financial future!

What Is the 30-Day Spending Rule?

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As the name suggests, it’s a spending rule that restricts using your money for 30 days.

Of course, you won’t stop utilizing your finances to manage all your necessities.

Instead, it applies to all those ‘extra’ items that can ruin your 50-30-20 budgeting method.

  • For example, you go to a retail store like Walmart to buy some household stuff.
  • However, you see ‘50% off on clothing’ as you pass by.
  • You think of checking out the stuff and end up buying it, although you weren’t there for clothes or anything.
  • The key marketing here is ‘sale,’ and you successfully fell for it.

Here comes the 30-day rule.

Surely, it’s fine to check certain things while you are there, but whether or not you need to buy them is different.

Right when you are about to pick it up for purchase, think of the rule and put it back. And if even after 30 days, you are tempted to have it, you can get it.

Note: This rule isn’t only when you pay with cash but also with debit, secured, and unsecured cards.

 

Why Consider the 30-Day Rule For Money Management?

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Working on your savings for years would mean nothing if:

Good news!

Something as simple as a 30-day rule can be a game changer for you and your financial goals and credit profile as a student or an adult.

This rule gives you 30 days to

  • take a step back,
  • analyze,
  • and then redirect your finances!

All of this directly helps your Equifax credit score and report in particular and financial stability as a whole in uncertain times.

7 Steps To Stick To The 30-Day Rule

If you are wondering how to reap the benefits of this 30-day rule right away, we got you covered!

The practical ways listed below will help you:

So, here you go:

1.   Analyze Your Last Month’s Spending & Paycheck

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The stepping stone to getting your finances right is by analyzing your last month’s income and spending. This will help you to: 

  • Get realistic about your financial health
  • See how much money you actually make, especially if you have multiple income streams.
  • Realize how much your spending is capable of money drainage.

Once done, you can easily move forward to the next step.

However, in order to analyze, you might need to get into the complicated task of procuring even minor details related to your expenses.

2.   Differentiate Between Wants & Needs

By now, you must have got a good look at your previous month’s shopping, dining out, and other entertainment-related bills.

And this leads us to our next step to stick to the 30-day rule.

That is, learning the basic yet crucial difference between your NEEDS and WANTS.

This is mainly because:

  • 40% of adults spend money long before they actually receive it.
  • Around 27% of adults (and even students) find it hard to avoid expenditure in a somewhat tricky situation because of social constructs.
  • Most adults don’t realize why having a budget is important when it comes to dealing with emergency situations.

All this happens mostly because people take their wants and needs equally.

However, learning the difference and prioritizing things can help you stay within your budget and face uninvited situations with steady peace of mind.

For example, if you already have one, you might not need that designer bag.

Therefore, buying that bag is not your need. Instead, your desires are just acting up to those tempting marketing ads.

3.   Close Those Money-Draining Holes

When was the last time you binge-watched your favorite season?

Can’t remember because you have been staying too busy for all that?

Then why are you even paying for those unnecessary subscriptions?

So, yes, close every money-draining hole and see how even the little changes add up to your credit and keep you from overspending.

4.   Be On Safer Side By Using A Secured Credit Card

 

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When it comes to paying bills and shopping for even the necessary items, your choice of a credit card can play a major role.

Not only that, but a secured credit card can also help you steadily build your credit score without having to jump too high.

So, the 30-day rule recommends you use a card that comes with the lowest interest rate, assists you even on days your credit isn’t THAT great, and doesn’t impose high-maintenance fees every now and then.

5.   Find New Ways Of Giving Yourself Treats

We get it; working too hard also demands giving yourself some break from mundane tasks to enjoy some laid-back days.

Also, these laid-back days should help you save your 30s, 40s, and 50s, instead of the other way around.

So, find new ways of giving yourself treats.

For example, opt for a short road trip instead of extended vacays, invite your friends over instead of attending that high-end party, and so on.

6.   Take Back Control of FOMO

Take control of FOMO just like you find new ways of giving yourself the love you deserve.

Yes, you would often find yourself doing things just because of their much-celebrated hype.

Instead, see:

  • Do you really have to do this?
  • Is it worth your money-related goals?
  • Above all, is it worth risking your peace of mind?

If you find a negative answer to any of the questions, tell yourself that it’s okay to miss out on certain things.

You don’t want to enjoy your youth and become homeless later.

No, we aren’t traumatizing you.

Instead, giving you a clear picture that all financial actions in your early age will affect the financial stability in your future life.

7.   Track Your Spendings Like A Pro!

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If you have heard people telling you that keeping track of your money is simply not possible, they are lying.

Instead, tracking and managing your Equifax credit score is a no-brainer when you are doing it the right way.

So, instead of not paying any attention to it, keep a strict check on where your money goes and what kind of role it is playing in your credit-related future.

Final Thoughts

Money management and spending can get pretty tricky over time.

However, not when you are equipped with this 30-day rule and other important tips on how to avoid overspending.

This is simply because it helps you learn to take a step back, reflect on your expenses and financial habits, and then come back to be pro at things that might have been bothering you for too long!

With that said, hopefully, you will find this guide quite useful for your financial future!