The Simple $1 Trick Helped Me Pay Off Debt and Retire on My Terms. Here's How It Works

There’s a lot of financial advice aroundpaying off debtandbudgeting.

And most of it can be pretty strict.

I was even able tosave enough to retire this year.

Here’s how the $1 rule works and why it just might change your life.

What is the $1 rule?

Before buying an item, figure out how many times you’ll use it.

This rule works especially well when applied to your weak spots, where you tend to binge.

For me, that’s clothing, accessories and home goods.

It also encourages me to choose sustainable and high-quality items.

But sneakers aren’t cheap, so I’m always on the lookout for discounts.

Recently, I found a pair of pink and black Nike dunks for $50 on sale.

So, I crunched the numbers.

That means it would cost me around $0.96 for each use.

So I got them.

Formula:$50 divided by 52 uses = $0.96 per use.

So, I decided it wasn’t worth the money.

But what’s actuallyworththe money?

We learned from previous moves that cheaper desks tend to fall apart easily.

We found a classic desk that retails for $699, marked down 40% to $419.

The purchase would pass the $1 rule in less than two years.

You still need to pay attention to how much flexible income you have.

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 I also didn’t use credit to finance the purchase.