The 1% rule is a budgeting strategy gaining popularity for curbing impulsive spending. If a purchase exceeds 1% of your annual income, take 24 hours to reconsider. For example, for a $50,000 salary, this means hitting pause on anything over $500. This rule offers a mental check before spending on non-essentials like concert tickets or gadgets, promoting thoughtful financial decisions. Experts suggest it encourages users to reflect on their needs versus wants, which could lead to significant savings over time.
"The 1% rule is also a good way to keep things in perspective and get a sense of whether it's going to derail your finances."
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