The 72-hour rule for money, as described by Carl Richards, is a simple strategy where you wait 72 hours before making any non-essential purchase.
Understanding the 72-Hour Rule
Carl Richards' "The One-Page Financial Plan" introduces this rule as a way to curb impulse spending and promote more thoughtful financial decisions. It's not about depriving yourself, but rather about giving yourself time to consider whether a purchase truly aligns with your values and financial goals.
How it Works
The 72-hour rule is straightforward to implement:
- Identify non-essential purchases: These are items or experiences you want but don't need.
- Before buying, wait 72 hours: Once you decide to buy, impose a mandatory waiting period of 72 hours.
- Re-evaluate: After the waiting period, ask yourself if you still want the item and if it fits into your budget and financial plan.
Benefits of the 72-Hour Rule
- Reduces Impulse Purchases: It helps you avoid buying things you don't really need due to sudden cravings or marketing influences.
- Promotes Mindful Spending: It encourages you to think about your purchases and whether they align with your financial goals.
- Saves Money: By reducing impulse purchases, it helps you save money that can be used for more important things.
- Reduces Buyer's Remorse: It decreases the likelihood of regretting a purchase later on.
Example
Imagine you're at the mall and see a new gadget you really want. Instead of buying it immediately, apply the 72-hour rule. Wait three days. During that time, you might realize you don't really need it, find a cheaper alternative, or simply forget about it. This simple delay can save you money and prevent clutter.
