Make the Right Spending Decisions With the Pick 3 Rule
If your financial plan is to save, save, save, and never spend a dime on anything interesting, you will burn out very quickly. It is possible to include small entertainment expenses in your budget, but the “Pick 3” rule can help you make the most of those expenses.
We have already told you that it is profitable to spend money on what brings you the most joy , and this rule posted on the financial blog Save Money, Dammit, supports this idea. They explain:
Before you start shaming yourself with your bad money habits ( they could be worse! ), You need to take a closer look at the 3 spending habits that bring you the most happiness. Many personal finance professionals don’t often tell you that you can actually spend money on what you like.
Here are my 3 pleasures of spending:
- Outdoor equipment (camping, hiking, running)
- Cinema
- Music (Spotify subscription, guitars, great headphones)
It’s simple enough – focus your discretionary spending on the three areas you like best. This does not mean that you have to go crazy in these categories, but it helps you to get rid of unnecessary waste on other things.
They also suggest making a list of the three most problematic areas with spending. These are expenses that can bring you short-term bursts of happiness, but in the end you won’t get much.
Once you have a better understanding of your habits and preferences, it will be much easier for you to consider how you are using your money. For more details please follow the link below.
Use the Pick 3 Rule to Improve Your Spending Habits | Save damn money with Rockstar Finance