How I Use the One In, One Out Method for My Finances
While a “ no purchase month ” is not in my future, I do adhere to certain minimalist rules to keep my finances on track, particularly the one-in, one-out method. Lifehacker home expert Lindsay Ellefson recently shared this method for decluttering your home. When you bring in a new shirt, the old one goes out of your closet. I’ve found that this principle works just as well when applied to personal finance.
The idea is very simple: whenever I plan to buy something new, I commit to selling something of equal value that I already have. Unlike traditional budgeting methods , which focus solely on limiting purchases, this approach acknowledges our natural desire for new things while creating a healthy contradiction that makes me ask, “ Is this new thing worth parting with something I already have ?”
How to decide what will be “the one in”
When I first tried the one-in, one-out method, I immediately noticed a change in my purchasing behavior. The extra step of determining what could be sold forced me to stop and think more carefully about each purchase.
I found myself asking better questions:
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Do I really need this new product?
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Is it worth trying to sell something else?
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What do I have that no longer serves me well?
This simple mental exercise has helped me avoid most impulse purchases. When I really want something, I’m willing to part with something else. When I don’t, the barrier of finding something to sell is enough to make me reconsider. In other words, I get all the benefits of a no-buy period, but avoid all the rigor that makes this method so difficult.
How to make the most of your “one way out”
Once you decide something is worth adding to your life, it’s time to decide what will make a difference. I’m a big fan of using online marketplaces like Facebook Marketplace. Here are some tips on how to really profit from this hub.
Research before pricing
Before I list anything, I look for similar items to get an idea of the market price. I often find that items I thought were almost worthless actually have significant value for the right buyer.
Quality photography matters
Clear, well-lit photographs from multiple angles significantly increase interest and sales price. I always try to capture any unique features or details that set my items apart.
Time matters
Seasonal products sell best during their respective seasons. Workout equipment sells well in January, outdoor gear sells well in the spring, and holiday decorations sell well the month before the holiday.
And for higher value items, patience pays off. I learned not to accept the first offer; waiting a few days often brings better offers from serious buyers.
Link related elements
I have found that bundling related items often commands a higher total price than selling individually, while reducing the number of appointments.
Bottom line
This method also showed me what things really improve my life. When I don’t want to part with something, it signals the importance of this item to me. Conversely, the ease of identifying items to sell indicates where I have made purchasing mistakes in the past.
As with any new habit, start small—perhaps with one category, such as clothing or kitchen gadgets. As you gain confidence, expand your spending to other areas. Soon you will naturally begin to compare every purchase with what you already have. Every purchase now requires intentionality. When I buy something new, I’ve already created a place for it, both physically and financially.