If you’ve struggled with your finances, you might be anxious about spending money. However, there is a simple rule of thumb you can follow to ensure that you’re still living within your means.
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“Give yourself the permission to spend with this rule,” financial influencer Genesis Hinckley shared on Instagram.
Here is Hinckley’s simple spending rule. The money expert also revealed three things the rich don’t hesitate so spend money on.
Invest $1 for Every $1 You Spend
Before Hinckley spends any money, she makes sure that she can invest the same amount that she plans to spend.
“This means that if you are about to spend $18,000 on your 1950s house remodel, you’re going to have to spend $18,000 on your investment portfolio,” she said. “So, before we even considered remodeling our home, that meant we needed to have $36,000 in our bank accounts. Right here has been our secret to living within our means.”
Hinckley adopted this rule after growing up in a household that struggled with money.
“Coming from a financially-stressful household of growing up low-income, this strategy ensures we don’t get too excited and stretch our finances too thin, and it also helps create a rule that gives you the permission to spend,” she said.
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More Ways To Spend Mindfully
Hinckley’s simple rule is a great way to spend more mindfully, but there are a number of other tactics you can use to keep your spending in check:
- Stick to a budget: Have a budget line for discretionary expenses, and don’t go over this amount once you hit your allotted limit.
- Look for discounted items: Don’t just buy something because it’s on sale, but do look for discounts and sales on items you do need.
- Make purchases with a debit card: Buying things with a credit card can come with perks, but these perks aren’t worth it if you take on debt. If you are someone who struggles to spend within your means, consider making your purchases on a debit card.
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This article originally appeared on GOBankingRates.com: This Spending Rule Is the Key To Living Within Your Means, According to Genesis Hinckley
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