The 3-Minute Rule: A Quick Gut-Check Before You Borrow

Ever feel like you have to make a borrowing decision on the spot? Good news: you don’t. Smart money moves don’t need to take hours of research—sometimes, all it takes is three calm minutes to check in with yourself. The 3-Minute Rule is a simple mental checklist you can run through before applying for a loan. It’s not a test. It’s a tool to help you pause, get clear, and move forward with confidence. 

What’s the 3-Minute Rule? 

It’s a quick gut-check made up of three simple questions. Before you take on a new loan, pause for a few minutes to ask yourself: 

• Do I really need this now? 

• Can I handle the repayments comfortably? 

• If something changed tomorrow, would I still be okay? 

That’s it. No spreadsheets, no pressure. Just a fast way to slow down and borrow on your terms—not out of stress, urgency, or impulse. 

The 3 Questions to Ask Yourself 

1. Do I need this—or just want it?

Ask yourself: Is this something essential, or has it just jumped to the top of your wish list today? If it's the latter, would delaying the purchase make a difference? A short pause might reveal whether it’s worth borrowing for—or whether you’re better off planning and saving first. 

2. Can I handle the repayments comfortably?

Not just “can I afford it,” but can I afford it without stress? Lenders will always assess an application from an affordability perspective, but it's also a great idea to get a sense for what you feel is affordable before you even apply. Use a calculator or even pen and paper to gut-check the numbers.  

3. If something changed tomorrow, would I still be okay?

Think about what might shift—a rent increase, fewer shifts at work, a surprise vet bill. Could you still manage? Even a small buffer (like a few weeks’ worth of expenses or emergency savings) can be a great safety net.  

How This Rule Helps 

The 3-Minute Rule isn’t about talking yourself out of borrowing for a specific need or want. It’s about making sure the loan works for you. By pausing to reflect on what you truly need, what you can comfortably afford, and how prepared you are for the unexpected, you reduce the risk of ‘buyers’ remorse’. This quick check-in can help build confidence and help you stay aligned with your longer-term goals. It also puts you in control—you’re not borrowing out of urgency or pressure, but out of a clear understanding of your situation. That clarity creates peace of mind, and peace of mind makes every repayment feel a little bit easier. 

Want extra clarity before you commit? 

Use our loan repayment calculator to see how your repayments could fit your budget. It only takes a minute, and it’s a great way to gut-check the numbers for your situation. No pressure, no hidden catches—just flexible options and honest answers from a team that backs your long-term success. At better finance™ , we’re here to help you borrow smarter, not faster. 

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.