Personal finance author Nick Maggiulli developed the 0.01% rule to help people determine how much they can spend without hurting their wealth. The rule is for those anxious about spending and not recommended for daily use. To calculate your 0.01%, divide your net worth by 10,000. Those in debt should avoid this rule.

Maggiulli recommends using the rule for rare splurges, not daily expenses. Applying it daily could lead to unnecessary spending. For those anxious about non-essential purchases, the rule could be handy. It helps say yes to unexpected expenses like lunch with friends without checking the bank account multiple times.

The average American has $6,473 in credit-card debt, making the rule less beneficial for many. But it could be handy after paying off debt. The rule is not for those with a negative net worth. It’s designed for those who fret over spending on even small things, helping them enjoy little splurges without guilt.

Read more at Yahoo Finance: Here’s the new ‘0.01% rule’ this money expert swears by to encourage Americans to indulge in more guilt-free spending