The Seven Day Rule for Expenses
The seven-day rule for expenses is when you want to impulsively buy an item, such as a new car or a new laptop, but instead, you give yourself seven days to thoroughly think it over before deciding to purchase the item or not.
Typically, people exercise this rule if they think about buying an item that is expensive or outside of their budget. For example, if you went into a store and saw a nice dress for $150, instead of buying the dress in the heat of the moment, you give yourself seven days to “cool off” before making a decision.
After seven days have passed, ask yourself the following three questions:
1. How do I feel about this item now that seven days are over?
2. Does this item make sense for me to buy right now?
3. How does this item fit in my budget? (i.e., fun expense, necessary expense, etc.)
If you feel good about purchasing the item after seven days and it aligns with your budget, you should proceed in making the purchase.