This simple ‘1% rule' could save you hundreds of dollars — and curb your dangerous impulse spending

New York Post

30-04-2025

Think twice before dropping that cash — your future self will thank you.
A budgeting hack known as the '1% rule' is gaining traction for helping people pump the brakes on pricey, impulsive purchases — and it's so simple, even your most shop-happy friend could use it.
If you're eyeing a non-essential splurge — say, Gen Z-coveted front-row concert tickets, a high-end espresso machine, a weekend getaway at a fancy resort, or a new gaming console — and it costs more than 1% of your annual income, hit the brakes.
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4 If you're considering a non-essential purchase — like a designer kitchen appliance, a premium bicycle, a luxury fitness tracker, or a spa retreat — and it costs more than 1% of your annual income, it's time to pause.
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Give yourself 24 hours to think it over before swiping your card. If you earn $50,000 a year, anything over $500 should trigger a 'cool-off' period.
Originally shared by Glen James of My Millennial Money via CNBC, the 1% rule helps put a mental speed bump between you and your next shopping spree — without requiring you to give up treats entirely.
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4 While $500 might seem significant, it's easy to rationalize such purchases, particularly when you're scrolling through flash sales or tempted by a 'limited edition!' notification on your go-to shopping site.
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'It isn't anything 'official' that you need to stick to,' Bobbi Rebell, CFP and personal finance expert at CardRates, recently told Bustle.
'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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And while $500 may feel like a lot, that kind of purchase can become dangerously easy to justify — especially when you're doom-scrolling through sales or seduced by a 'last one left!' tag on your favorite shopping app.
'This rule reminds you to stop and think the purchase through,' said Rebell. 'If you'll actually use the purchase, that's fine … but if it's just a heat-of-the-moment urge, that's when the 1% rule might help pass up the item — and ultimately save big.'
The strategy even works in reverse. Instead of spending that chunk of change, stash it away.
That way, 'you intentionally put the money into savings instead,' Rebell said.
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'Think of it as a gift to your future self!' she said.
But fair warning: this isn't a license to 1% your way into debt.
4 Repeatedly applying the 1% rule can quickly lead to significant spending, experts say, but it's not meant to be used frequently; experts advise using it sparingly for maximum effectiveness.
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'If you apply the 1% rule over and over, you can end up spending a tremendous amount of money,' she cautioned.
'It's not a rinse and repeat kind of thing. It has to be used very sparingly.'
Of course, spending discipline doesn't stop at handbags. Even your grocery cart could probably use a budget-friendly makeover.
Enter Chef Will Coleman, who recently went viral for his '6-to-1 grocery shopping method' — a simple hack designed to help families save hundreds on food each month.
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'Whenever you go grocery shopping … use the '6-to-1' method,' Coleman explained in a TikTok viewed nearly a million times.
'You grab six veggies, five fruits, four proteins, three starches, two sauces or spreads and one fun thing for yourself.'
4 The '1%' rule and '6-to-1' hack encourage you to pause and evaluate your purchases.
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He created the formula after realizing his shopping habits were draining his wallet — and wasting food.
'This makes grocery shopping way easier, way cheaper, and you get in and out, so you're not there all day long,' Coleman added.