The 24-Hour Rule That Can Save You Thousands

The best spending tip ever. Really. Don’t delay, watch this now. Then delay.

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This video’s teaching is uniquely powerful. I promise. I’ve seen, many times I’ve seen, people follow this basic advice and it make a huge difference to their personal finances. It’s helped lower their spending rate and, thus, raise their saving rate. And hey, isn’t that at the core of all of this money-management stuff?

Going forward, anytime you’re about to make a significant discretionary purchase, once you’ve made the decision to spend the money…wait 24 hours. “C’mon, Dave. That’s not exactly deep. Hardly some fresh insight. My grandma told me that.” A smart woman, did you listen? The return on implementing this strategy is truly remarkable.

You see, our dopamine system goes wild at the anticipation of buying — not the actual owning. Waiting a day gives your prefrontal cortex (AKA the adult in the room) time to catch up with your emotions. “So what?” you say. Well, when that catch-up takes place, your brain starts thinking, rationally and holistically, analyzing from many perspectives.

You think about the trade-offs: “Do I want this more than a night out?” You consider practicalities: “Do I even have room for this?” And “Isn’t my current one just fine?” And you check alternatives: “Wait, it’s $150 cheaper on another site.” But you know what else you often do after the delay? You forget about it! Completely!

Research says that’s particularly true of potential online purchases. I love Morgan Housel’s line here (“The Psychology of Money” author — great book by the way): “Time is the cheapest form of insurance.” Insurance against what, you ask? Against one of the biggest risks in personal finance—our impulses getting the best of us.

By the way, I’m not saying “Never buy anything, have no fun!” I am saying, “Let’s use a strategy that makes sure you really want what you are buying.” Do this! Always! Well, except when the updated “The Wealthy Barber” comes out— buy it immediately, if not sooner.