26 Apr, 2023

What Is The 30-Day Savings Rule? A Great Place To Start On Your Saving Journey

What Is The 30-Day Savings Rule? A Great Place To Start On Your Saving Journey
Written by: - Phil Baker

When it comes to spending money, we spend on items we think we need and find out later that we may have been able to save with them. Over the course of 30 days, this amount can add up.

That is why there are methods like the 30-day savings rule, which makes you savvier with money and able to manage your impulses. Read on to find out how this method works and how it could help you. 

Also read: How To Organize Your Financial Records In 5 Easy Steps


How Does This Rule Work? 

This trick is said to work for those who want to improve their savings mindset by avoiding any impulse purchase, which can be defined as goods or services you find yourself wanting rather than needing. 

If you find yourself browsing a potential impulse purchase, you can close the tab and walk away from the source, but this doesn’t mean you won’t buy it, as this is the next part of the rule.

You can do this for any purchases like this, and all you need to do is think about whether you need it and take your time to make the decision. If after 30 days you still want something, you can get it but limit yourself to quantity. 

Also read: Self-Employed Taxes For Dummies


How Do I Enforce The Rule?

Even though this rule sounds quite flexible, it can be very limiting as you must stop spending on any goods you want during the period. Part of this is by making a budget and only assigning a certain amount towards what you want after the 30 days.

That is why it’s a good idea to make a plan and stick to it, and these can start simple and build up to long-term goals and behaviors that encourage spending. 

Also read: 6 Ways To Prove Your Self-Employed Income As A Contractor


Step 1

Think about the things you want and need and make a list of each, and if you find yourself making irregular purchases, write down the ones you find yourself making more often. 

You can look at your bank statement and find out how much you could save if you didn’t make any purchases like it during the 30 days. This thinking must be applied to the world around you while shopping in person or online. 

This can be a difficult mindset to get into, but if you start to think about how much you spend daily, you’ll become more conscious of how much you spend and are more likely to succeed. 

Also read: Breaking Down Your Pay Stub Deduction Codes


Step 2 

To help you with step 1, you can only take out the exact money you need when you go shopping to avoid using a debit card. Once you’ve overcome this hurdle, you can start building up your savings, where you can set up a new account. 

Instead of a regular bank account, you can use an RRSP, TFSA, high-yield, or high-interest savings account. If you have it in an account where you can’t access it for a fixed period, it may be preferable for those who are dipping into their savings often. 

Also read: 5 Ways A Renter Can Show Proof Of Income


Step 3 

Even if you’re setting out to save money for this period, you should still be able to give yourself an allowance for these purchases, which works better for the larger expenses as these may feel more unobtainable.

Make room in your budget for a sum to be added to the total, so be modest with this and ensure that the sum you put in doesn’t affect your initial saving plan too much. This way, you can buy some items stress-free and take advantage of schemes like cash-back on purchases. 

Step 4 

If you’re struggling, you can set up a savings or banking app, where as soon as your earnings come in, you can allocate portions of it to certain areas, which can help you build the motivation and insight into how well this can work for you. 

If you have to, give the card associate with an account to a family member or friend, and make it as hard as possible to make any kind of purchases, as you can set blocks and limits with some account providers. 

If you need more motivation, you can do this with a friend to see who can save the most, and you can write down the little wins you have each day, so you can reflect and see how far you’ve come. 


Some Tips When Using The Rule 

First of all, as this method could be considered a habit, it can take a while to become imprinted on our thinking, so it could be up to 2 months before your thinking reflects your new way of thinking. 

You can then cut off any of your debit and credit cards so you won’t be tempted to spend anymore, as this impulsive type of spending is a big reason why many people can fall into debt. Some of these purchases may not be as essential as they initially thought.

If you have an end goal like a holiday, car, mortgage, or even education, these may sound large, but if you add up all of your impulse buys across the year, you may save hundreds, if not thousands. 

You also have to be realistic with what you can afford to save right now, so even if you don’t see any need to save, it can all come in useful, as you might change your plans at some point and decide to save and contribute to your retirement, for example.  

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Circumstances can change, which is why you may want to give yourself goals that can be achieved within ten years, as you may lose motivation or your plans may change.

It’s also essential to take advantage of any high-interest accounts, which is a bonus for your savings, and all you need to do is look across all providers to find the best deal for you. 

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