This simple 1% rule could save you hundreds of dollars and curb your dangerous impulse spending

Think twice before dropping that cash — your future self will thank you.A budgeting hack known as the “1% rule” is gaining traction for helping people pump the brakes on pricey, impulsive purchases — and it’s so simple, even your most shop-happy friend could use it.If you’re eyeing a non-essential splurge — say, Gen Z-coveted front-row concert tickets, a high-end espresso machine, a weekend getaway at a fancy resort, or a new gaming console — and it costs more than 1% of your annual income, hit the brakes. Give yourself 24 hours to think it over before swiping your card.If you earn $50,000 a year, anything over $500 should trigger a “cool-off” period.Originally shared by Glen James of My Millennial Money via CNBC, the 1% rule helps put a mental speed bump between you and your next shopping spree — without requiring you to give up treats entirely.“It isn’t anything ‘official’ that you need to stick to,” Bobbi Rebell, CFP and personal finance expert at CardRates, recently told Bustle.“The 1% rule is also a good way to keep things in perspective and get a sense of whether it’s going to derail your finances.”And while $500 may feel like a lot, that kind of purchase can become dangerously easy to justify — especially when you’re doom-scrolling through sales or seduced by a “last one left!” tag on your favorite shopping app.“This rule reminds you to stop and think the purchase through,” said Rebell.

“If you’ll actually use the purchase, that’s fine … but if it’s just a heat-of-the-moment urge, that’s when the 1% rule might help pass up the item — and ultimately save big.”The strategy even works in reverse.Instead of spending that chunk of change, stash it away.That way, “you intentionally put the money into savings instead,” Rebell said. “Think of it as a gift to your future self!” she said.But fair warning: this isn’t a license to 1% your way into debt.“If you apply the 1% rule over and ove...