'If you earn $200,000 or less,' use the 1% spending rule to save money, says finance expert—here's how it works

During a conversation about how to spend money on things we enjoy without going broke, James told me about hiswhich he came up with after he went to a department store with some friends — and ended up buying an Apple Watch for $1,300.

Let's say your annual gross salary is $60,000, and you want to buy a rug that costs $600 . You would need to wait a day before making a decision. Even if the rug you have now is worn down, you might decide, for example, that $600 is too much, and that you could easily do with something cheaper."Now, the 1% rule just a guide — it's simple and really works for me," said James.

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