25/24 Rule

by tony kriz

We want to help our community build sustainable and accountable spending habits (reversing the American spend-addiction).  The 25/24 rule is one such habit that is harvesting great results in people’s budgets and family cultures. The rule is fairly simple.  For any expense exceeding 25 dollars, the family must wait 24 hours to make the purchase from the time the “desired item” is identified.  Thus: the 25/24 rule. So, let’s say a family runs down to the local Target to pick up a couple of things and Mr. Husband sees that the 34th season of M*A*S*H has just been released on DVD for just $59.  He throws it in cart in a moment of consumer euphoria, but Mrs. Wife reminds him of the 25/24 rule.  He remembers his commitment to accountability and sustainability and returns the colorful box to the shelf.  The family moves to check-out with just their intended list of goods.  Mr. Husband is a bit disappointed but he is comforted by the fact the DVDs will still be there tomorrow. Over the next 24 hour Mr. Husband hardly thinks about the DVD series and when Mrs. Wife asks him about it the next day, he admits that it is not so important to him.  Anyway, he still has not watched seasons 22-33, which lay cellophane-encased on the basement shelf. A simple habit like the 25/24 rule helps families (and individuals) in many ways: ¨      Establishes shared values for spending. ¨      Curbs reflex-spending. ¨      Counters corporate schemes to convince you to spend without reflection. ¨      Helps maintain a proactive spending plan. ¨      We find that shared consumer decisions make for happy households. You might be saying to yourself, “$25 is not very much.  I can’t even fill my gas tank for that.” Remember the heart of this rule is to promote reflection.  Expenses like gas, groceries and even dinner out, can all find their reflection through the habit of an intentional spending plan.  Budgeting is like meditation.

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You’re currently reading “25/24 Rule,” an entry on Equity Design.

Author:
tony kriz
Published:
9am on 09/28/08
Category:
Financial Health, Planning

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