What is the Bookshelf Rule?
It’s a simple approach to curbing impulse buys. The bookshelf rule is a budgeting technique that encourages you to think more carefully about any purchase you’re considering other than essential household costs or things you truly need. By using this strategy, you’ll determine how worthwhile something is before you buy it so you can avoid unnecessary expenses and save money. Like most budgeting strategies, this one isn’t a ‘one size fits all’. You may want to change the rules to better fit your current needs, spending habits, and budget.
The core principle involves a period of delayed gratification. Instead of immediately buying something you want, you mentally ‘put it on a bookshelf’ for a set amount of time. This pause allows you to evaluate whether the item is truly worth purchasing and potentially identify cheaper alternatives that scratch the same itch. Many people find that the desire to buy a product fades during that waiting period, leading them to save money.
Why is it called the bookshelf rule?
The name comes from the visual imagery of placing a book on a bookshelf. Imagine that new gadget or item of clothing on a shelf, waiting to be ‘taken down’ after a designated time. The name is catchy and evocative, making the concept easier to remember and implement.
Why Use the Bookshelf Rule?
It combats impulse purchases. Shopping binges and impulse purchases can seriously derail your budget. Using the bookshelf strategy can help you avoid these issues. It also encourages mindful spending, teaches patience and helps you be more intentional about your purchases.
Does the bookshelf rule work?
Yes, if you commit to following its principles. The greatest strength of the bookshelf rule is that, unlike other methods that may feel restrictive, it gives you the freedom to buy the things you truly want. By taking some time to determine how much you want an item, how often you will use it, and whether you can afford it, you ensure you aren’t wasting money. Using the Monthly Home Cost Tracker can also help you see where you might be overspending.
How to Implement the Bookshelf Rule
Implementing the bookshelf rule requires a few simple steps and a commitment to changing your spending habits.
Choose your waiting period
A waiting period of two to four weeks is sufficient for most purchases, but feel free to select the time that works best for you. The time you set aside should be long enough to allow you to evaluate how much an item interests you and whether you need it.
Identify impulse buys
Almost every purchase you make can be thought of as ‘the real deal’ if you give it long enough. To avoid this, use the bookshelf rule for items you feel tempted to buy immediately. Perhaps you walk into a store and find a jacket in your favourite colour, or maybe you see a discounted blender advertised online that appeals to you.
Put the item ‘on the shelf’
When you are struck by the urge to buy something, whether you find something while window shopping or see an ad online, resist the impulse to buy it immediately. Picture the item on a shelf in your mind and tell yourself you’ll revisit the decision later. Consider taking a screenshot or saving a link to the item to remind yourself about it later.
Re-evaluate after the time is up
When the waiting period has passed, revisit the item and ask yourself a few questions, such as:
- Do I really want this item?
- Can I afford it without compromising my financial goals?
- Does it serve a genuine need, or am I buying it for emotional reasons?
- Could I find a similar item at a lower price, used, or on sale?
- Will this add much value or joy to my life?
If after answering these questions, you still want to buy the item, then you can do so. However, you may find that your initial excitement has faded, and you no longer feel the need to buy it.
Track your spending
Using a budgeting app or spreadsheet to track your spending can provide valuable insights into your spending habits. Over time, you may notice patterns of impulse buying that you can address with the bookshelf rule. The better you become at understanding your shopping habits, the easier it will be to control them.
Benefits of Using the Bookshelf Rule
There are several great reasons to use the bookshelf rule. Here are some of the most noteworthy benefits.
Saves Money
When you hold yourself back from making an impulse buy, you immediately save money. You may also find joy in going through a process that gives you insight into your true needs and wants and whether an item is worth spending money on. Thinking about your motivations and intentions regarding a purchase can lead to greater financial literacy.
If you find this method helpful, try other strategies that make you think twice before buying. These include:
- Cash-only budgeting. If you choose to spend only money you have on hand, you will likely think harder before buying.
- The 24-hour rule. Similar to the bookshelf method, this simply has you wait 24 hours. If you can go a day without buying something, you may find you don’t actually need it.
Reduces Regret
Impulse purchases often lead to buyer’s remorse because you are buying items without giving the decision enough thought. By using the bookshelf rule, you have time to think about what you want and what you need. If you do not want to buy the item after you’ve had time to think about it, this could indicate that you really didn’t want the item to start with. This method ensures that you love everything you buy and you use everything that you purchase.
Promotes Financial Wisdom
The bookshelf rule encourages you to become more thoughtful about your spending habits, plan for the future and evaluate costs. These principles can help you boost your financial literacy and strengthen your financial management skills. With enhanced knowledge, you may want to explore other strategies that help you with budgeting, saving money, and investing.
Potential Drawbacks
Like any budgeting strategy, the bookshelf rule has its limitations.
Can Be Too Restrictive
Some individuals may find it restrictive or challenging to adhere to the waiting period, especially when dealing with time-sensitive purchases. If this rule is too restrictive for you, consider shortening the waiting time or making exceptions for pre-scheduled or necessary buys.
Not Suitable for All Purchases
The bookshelf rule may not be suitable or practical for certain types of purchases. For example, you would not want to delay buying a medication you need or buying essential household items, such as groceries, laundry detergent, and other necessities. You can also use the rule to determine whether the benefits of a premium appliance or gadget make it worth the investment before using any appliance cost calculators or purchasing it.
Time Consuming and Forgetful
You have to spend time thinking about how much you do or do not want an item on your ‘bookshelf’. If you’re interested in purchasing many items, the rule can become time consuming very quickly. Furthermore, you might forget about the item. If this happens, your waiting period will extend beyond what you intended.
The Bookshelf Rule vs. Other Budgeting Methods
The bookshelf rule is just one of many different approaches to budgeting and money management. Here’s how it compares to some other popular methods:
50/30/20 Rule
The 50/30/20 rule allocates 50% of your income to needs, 30% to wants, and 20% to savings and debt repayment. Unlike the bookshelf rule, 50/30/20 focuses on the distribution of your income rather than individual purchase decisions. While the 50/30/20 rule gives a broader framework for managing your budget, the bookshelf rule offers a method for curbing impulse spending.
Envelope Budgeting
With envelope budgeting, you allocate cash into different envelopes for specific spending categories (e.g., groceries, entertainment, clothing). Once the money in that envelope is gone, you stop spending in that category for the month. Like the bookshelf rule, envelope budgeting encourages mindful spending. However, envelope budgeting can be more rigid than the bookshelf rule, which allows for flexibility and evaluation of individual purchases.
Zero-Based Budgeting
Zero-based budgeting requires you to allocate every dollar of your income to a specific purpose, so that your income minus your expenses equals zero. This method ensures that all of your money is accounted for. In contrast, the bookshelf rule focuses on individual purchases rather than overall budget allocation. Zero-based budgeting may provide comprehensive financial planning, but the bookshelf rule provides a targeted approach to curbing impulse buys. Check out the gardening category for cost effective ideas.
Is The Bookshelf Rule Right For You?
The bookshelf rule is a practical tool for breaking the cycle of impulse buying and building healthier money habits. By incorporating this method into your financial routine, you can avoid unnecessary expenses, achieve your financial goals, and cultivate more meaningful relationships with your money.