elevateIs spending $100 a lot to you? Does the thought of paying $100 for a pair of shoes, a purse, or a piece of jewelry make you break out in hives? Or do you channel your inner Tom and Donna and treat yo’self?

Personally, I lean more towards Tom and Donna.

While it is important to save money, you do deserve a treat every now and again. And I believe you get when you pay for, especially when it comes to things like shoes and winter coats, you can’t go completely nuts.

Today I’m going to talk about the importance of waiting a day before buying something, guidelines to help you make wise purchasing decisions, and why you should sometimes splurge.

The $100 rule was an idea I first had when I took Dave Ramsey’s Financial Peace University. In it, he champions “sleeping on” any purchase of over $300 and talking it over with your spouse before you buy. Obviously I don’t have a spouse to talk things over with, so I modified it to fit my life. If I am going to spend $100 on a non-essential item, I think it over for 24 hours.

Simple as that.

Here are my rules for if I want to spend $100:

  1. Groceries, utilities, and other bills do not count. Of course I have to eat and pay the bills. But if I want a new pair of glasses, I have to check the finances to make sure it is in the budget.
  1. Determine if it is a need or a want. Eventually I need a new pair of glasses, coat, or pair of shoes. But I only want jewelry, extra shirts, spa treatments, etc.
  1. If it is a need, I do my research. If it is a want, I definitely sleep on it. I have no problem forking over $100 for a “need” item if it will last me a really long time. But I have to do my due diligence. I scour the web to see where I can score the best deal and go from there. If it is a luxury like jewelry or a dress I want, half the time I find I didn’t really want it after thinking about it.
  1. I am not afraid to spend money on classic, quality items. My current purse, only pair of jeans, and my two favorite pairs of shoes cost over $100, but they have lasted my for years. Here are some questions I ask myself to determine if it is worth the splurge:
  • Will the item last a long time? Is it made well?
  • Does it go with everything you own?
  • Will this be your only winter coat/pair of jeans/purse?
  • Will you enjoy and use it for more than a year?
  1. If I experience even the slightest buyer’s remorse, I return the item. It is important to treat yourself, but if you are not completely delighted with what you bought, why would you keep it?

If you follow these rules and ask yourself these questions, they will hopefully clarify what you need to buy and what you should think about. I am not opposed to spending money, but I want to make sure I am spending it wisely and on quality pieces.

Have you ever “slept on” a purchase before buying? Comment below!