Standard personal finance advice often discourages us from buying anything non-essential while paying off debt. I think most people’s idea of ​​living debt free is wrong.

Why should we give up fun and have nothing to look forward to?

When I focused on eliminating my debt, I considered the “scrimp-and-save” method, which severely limits spending so you can squeeze a little more into your budget.

However, constantly tracking every penny and slapping myself when I went over budget didn’t make me want to spend less – it just made me feel worse when I did. Plus, it made me want to spend more, trapping me in a cycle of spending and restriction. Now that I’m a money coach, I understand why. This approach is not sustainable and does not address the real problem.

I finally gave up on classic advice and created my own spending rule. Rewiring the way I think about spending has helped me limit my spending without giving up the things I need (or want) to buy. It also helped me set ambitious financial goals, like saving enough to retire 30 years ahead of schedule. Now, I share this rule with thousands of clients I’ve helped erase debt and crush their money goals. And I bet it can work for you too.

Have you got your attention yet? Here’s how to apply my $1 rule and why it just might change your life.

What is the $1 rule?

The $1 rule is my take on the old idea of ​​cost per use, specifically calling a dollar a benchmark. Before you buy an item, understand how often you will use it. If it breaks down to $1 or less per use, I give myself the green light to buy it.

So if an item costs $100 and you only get five uses out of it, that comes down to $20 per use. Following the $1 rule, that purchase wouldn’t be worth it.

This rule works especially well when applied to your weak spots, where you tend to overindulge. For me, these are clothing, accessories and home goods. I still buy things I love (and will use a lot), but it keeps me from making impulse purchases that might seem like a good deal.

It also encourages me to choose durable and high quality items. I’ve moved away from fast fashion almost entirely because even a $5 shirt that I might only wear once or twice breaks the $1 rule.

Applying the $1 rule to large purchases

When you’re debating major expenses like furniture or technology, the price tags look different when you calculate how much use you’ll get out of them first.

For example, when we bought our last house, it became clear that my old HGTV-obsessed self was coming back. It’s easy to get caught up in the excitement of decorating a new home and buy more than you really need. But what is it really? valuable money?

With my husband and I working from home forever, we decided we were willing to pay a little more for quality desks and office chairs. We learned from previous moves that cheaper tables tend to fall apart easily. So instead of going to Target or getting a desk from Craigslist like we had done before, we went to a higher quality furniture store.

We found a classic desk that retails for $699, marked down 40% to $419. That’s more than I’ve ever spent on a desk, but using the $1 rule, I figured I’d be sitting in front of it five days a week for 50 weeks a year, which is 250 uses a year. The purchase would surpass the $1 rule in less than two years.

I felt much more confident in that purchase than in the days when I used to skim and save every penny.

What if something doesn’t pass the $1 rule?

I still spend occasionally without following the $1 rule. When it comes to paying for events or travel, the $1 rule doesn’t always work. But that’s when I rely on my budget and past experiences to help me decide if an expense is worth it.

The Broadway show Hamilton came to our town when I focused on paying off my student loans and mortgage. The musical theater geek in me conflicted with the voices of prominent debt experts saying that buying these expensive tickets would be a mistake. But since I stick to the $1 rule for 99% of my purchases, I knew I could make an exception.

Yes, I bought the Hamilton tickets instead of putting extra money towards my debt and I have no regrets. But I didn’t even use a loan to finance the purchase. Instead, I swapped out other expenses I would have made during the month, like dinners out and social gatherings, so I could pay for the tickets entirely without a credit card and without blowing my budget.

The $1 rule won’t always be able to help you when deciding whether an experience, like vacations or concerts, is worth the money. But if you stick to it most of the time for material purchases, you’ll be able to free up more money for experiences without hurting your debt-paying goals.

You can pay off debt and still live your life

Leaving room to enjoy my money has kept me focused on the long and often monotonous journey of paying off debt and saving for the future. At the same time, I’m taking the guilt out of spending on things that are meaningful to me, which has helped me create a healthier relationship with money.