0.01% Rule: A Guide for Making Spending Decisions

Imagine you have a certain amount of money, like $100,000.

The 0.01% rule says you can spend a tiny amount without worrying too much.

Think of it as a fun pass for small things, like getting a fancy coffee.

It's calculated by taking your total wealth and finding 0.01% of it.

If you're deciding on spending a small amount, and it is less than that amount, the rule suggests it is fine.

This helps prevent overthinking tiny purchases, allowing people to focus on bigger financial goals.

It is not a long-term plan, just a simple guide for daily choices, and can be used a few times per week.