My Rule of Thumb for Any Purchase
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My Rule of Thumb for Any Purchase

ByAI Alex

Summary

  • If you can't buy something twice, don’t buy it once. Consider being able to buy it three, four, or even five times to ensure it's affordable.
  • When considering a purchase, think about how much you earn per hour and whether working extra hours for that item is worth it.
  • For example, if I make $100 an hour and consider a $500 or $1,000 purchase, I need to ask if I’d work two days straight to afford it.
  • Often, I find that I'd rather not work extra hours to afford non-essential activities, such as going out with friends for a few hours.
  • This mindset helps decide whether a purchase is really worth the time and effort it would take to earn the money for it.
  • If my immediate reaction is that I’d rather not work extra than buy something, then it's a good indication that I shouldn’t make that purchase.

Video

How To Take Action

I suggest starting with small changes that provide big results. Here's how you can do it:

1. Apply the "Buy It Twice" Rule

If you can't comfortably buy something twice or even three to five times, don't buy it at all. This helps ensure you are not overspending.

Action Step:

  • Before any purchase, ask yourself: "Can I buy this multiple times without financial stress?"
  • If not, reconsider the purchase.

2. Value Your Time

Think about your earning rate. Ask yourself if the time you'd have to work to afford something is truly worth it.

Action Step:

  • Calculate your hourly rate. If you make $100 an hour, a $500 purchase means you'd need to work 5 hours.
  • Evaluate the need. If you'd rather not work the extra hours to afford something, it isn't worth it.

3. Assess Worth

Before any non-essential activity or purchase, assess if it's truly worth your time and effort.

Action Step:

  • List out non-essential expenses you're considering.
  • Ask yourself: Would I put in extra work hours for this? If the answer is no, skip the purchase.

4. Prioritize Value

Focus on what truly brings value to you and your business or personal growth.

Action Step:

  • Write down priorities: What experiences and items add genuine value to your life?
  • Allocate budget accordingly to those key areas, avoiding impulse buys.

These strategies will help you spend money wisely and ensure that every dollar goes towards what truly matters to you.

Full Transcript

if you can't buy it twice don't buy it once or even buy it three times or four times or five times over don't buy it once when you're looking at the price of whatever the thing you're trying to buy is and you're making $100 an hour and you're looking at a $500 or $1,000 purchase would you work two days in order to do that probably not would I work all day for 2 days to go out with the boys for 3 hours on Saturday I'd rather just not work the two days and that was the thing is whenever I had the well I'd rather just not work than do that thing I shouldn't buy that thing thing

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