Spending lavishly might make you feel happy at that particular time but the truth is that it can have a huge blow on your finances. It’s every lady’s dream to have that nice red pump heels and a guy’s dream to have that dapperly made suit. All of these are nice until you check your account balance and you realize that there is no money on ground!
Impulse buying is a common bad spending habit and no one is immune to it. Hence, every individual needs to know how to overcome impulse buying. That’s why we are sharing a few tips and tricks that can help in stopping this bad habit. Here are the simple tips we would be considering;
- Avoid marketing newsletters
- Reduce entertainment shopping
- Remember your financial goals
Draft out your budget and savings
One of the ways to overcome impulse buying is having a budget. Based on your salary or earnings, you should have a budget and work with it. Your budget will include what you intend to purchase per month. This involves planning your purchases through a list of things you intend to buy and their prices. Once this is done, it helps you to sieve out and differentiate between your needs and wants. A want refers to a wish or desire for something (a bag, a gold wristwatch) while a need is a necessity; what you necessarily need at a particular point in time (e.g. groceries). Also, your budget should be reviewed monthly so as to monitor your spending.
After budgeting, you need to plan your savings. How many percent of your salary do you intend to save for the month? 10%? 15%? To ensure this, you can link your salary to your savings account. That is, once you get your salary, you transfer your savings straight to your account before touching it!
Unsubscribe from marketing newsletters
I know this sounds unbelievable but unsubscribing to marketing newsletters is another way to help you stop spending extravagantly. Once these types of newsletters pop up with discounts and promos for a limited time, the fear of losing out sets in.
The truth is, you can always eat that pepperoni pizza anytime, all you need is discipline! Planning to spoil yourself anytime? Then always plan for extra cash to splurge on all your cravings! Today, unsubscribe from that newsletter and have enough money to spend!
Reduce shopping for entertainment or pleasure!
I guess almost everyone is guilty of this. We all at our leisure time want to see the latest trendy wristwatches, bags, shoes etc. but not shopping for entertainment either online or offline will do you good! Visiting online sites to see what is trendy or window shopping at your favorite store or a shopping mall will indulge you in spending on your wants (remember what I told you about wants? Check the previous tip above).
Alright! You need to hang out with your friends at the mall? Why not go with a list and self control. These two will help you whenever you want to overspend. No matter the time or season you intend to shop, always shop with a list!
Remember your financial goals
Like the saying goes, “once the reason for doing a thing isn’t known, abuse is inevitable”. It is important to sit down, take a deep breath and write down why you want to stop spending off budget. The main reason why we want to overcome impulse buying is because we want to achieve our financial goals. Probably, you want to save to buy a house, a car or for retirement purposes.
Hence, sequential to evaluating, write out your financial goals in sticky notes or cards and paste them on your debit cards, laptop, desk at work, refrigerator or bedside. Also, you can make a copy of this list as a screensaver on your laptop and phones!
Seeing this list everyday and every time makes you conscious of the fact that you have what you want to achieve by not buying that dress! This is being deliberate.
Putting an end to impulse purchases is not an uphill task. It all requires planning, budgeting, self-control/discipline and knowing your financial goals. Remember that the end product of making smart money moves is one’s path to financial security.