If impulse buying and overspending is a problem for you, it could be that you lack knowledge about proper money management or budgeting.
We’ve come up with 10 practical tips to help you avoid the temptation impulsvie buying.
1. Stick to your budget
You must make you own budget. Creating a budget is not a magic that will suddenly make your money stay. This requires a lot of discipline on your spending, so you always stick to your budget or else your money disappears like MAGIC.
Budgeting is telling your money you are in charge. Sticking to the budget is showing your money you are in charge. Make it a habit!
You can start budgeting by using this trick 60-20-20 Rule: 60% for your Needs, 20% for your Savings and Investments, and another 20% for your Wants.
2. Treat yourself once in a while
Spending a small portion of your money which can be called as “Fun Fund” occasionally is equally important as saving money too.
Depriving yourself of buying items you want is also unhealthy. Rule is to allow yourself to mini splurge once in a while like buying a pair of shoes or having your nails or hair done.
However, you still must stick to your budgeted Fun Fund in checking items at the mall or online shops. This shopping becomes guilt-free since you have a ceiling on your spending.
3. Delay your purchase
Add to cart! A lot of us have added too many items in our online cart in Lazada, Shoppee or Zalora especially during sale season.
To avoid impulsive buying, wait for a day or days to calm down before you decide to check out. This gives you time to think about which items to purchase or take out of the cart.
Some Online Shopping websites release a 24 hour or limited time sale to attract buyers, but you just need to remind yourself not to rush into buying anything just because of a countdown. Ask yourself again and again, "Do I really need this?"
Save your money and just be ready for the next sale or promos.
4. Plan your shopping
"Make a list before you go go." Nothing beats a great plan even in shopping!
Christmas is coming so start planning your spending on gifts to avoid overspending. Identify the items you want to buy and allot a budget for each item.
Your shopping list will greatly affect your budget so make sure to just include the ones that are important. After all, it is the thought that counts.
5. Unsubscribe to unnecessary online promotions
Promo Alert galore! Have you been getting a lot of emails from brands regarding their upcoming or ongoing promos or sale? Did you also get text messages from credit card providers advertising their freebies in exchange of a certain purchase? You may think you are getting good deals, but marketers are only trying to get your attention to spend on things which you may not need.
If you are serious about saving up, get your phone and click the unsubscribe button to avoid temptations. These promotions messes your goal to save up or budget since you justify it by the points you earn or freebies you get from them but the shocking truth is – they still made you spend.
6. Avoid compulsive buying
According to VeryWellMind, compulsive shopping behavior is often accompanied by depression, anxiety, and other negative emotions. People affected by compulsive shopping disorder often report an uncomfortable tension that is relieved, at least temporarily, by shopping.
Just a piece of advice, do not let your emotions take over your spending habits. Stay away from shopping malls or online shopping sites when your emotions are on a rolling coaster.
7. Have a shopping buddy
Shop with a reliable companion. Accountability reminds you to spend wisely which most of the times is not met if you shop alone since you justify your own spending.
Take your friend, sibling, or even your mom or dad with you and ask them to talk some sense when you start making reasons to defend your purchases.
Although you need to make sure that you take someone who will not tolerate you or else your budget will have its downfall.
8. Limit the cash you take with you
Bringing too much money gives you the confidence to spend beyond your budget. Discipline is the key. Take just the right amount of cash you need for that day.
Take a step further by leaving your credit and debit cards at home to avoid temptations. If you stick to your shopping list and just rely on your budget, you will be able to avoid impulsive buying.
9. Financial contentment
Financial contentment is the state of satisfaction experienced when you live within your means.
If you always think about the thing that your friends or the people around you have that you don’t have, you will never be contented. This will be a game that you will never win since it leads to impulsive buying.
Be grateful on the things that you have instead of looking for things that you do not have. Whenever you feel the urge to buy something new, try feeling gratitude specifically for similar items that you already have.
10. Stick to your goals
Setting smart financial goals will keep you motivated as you start changing your spending habits. Having these goals will constantly remind you of the reasons you’re cutting back on expenses and making a few sacrifices.
An unrealistic generic goal like “I will not eat anymore” isn’t going to cut it. Setting goals that can be quantified like “I will decrease my spending on eating out from 150 pesos a day to 100” gives you limitation.
Remember its not how much you earn, its how much you save that counts. Start planning today!
If you need help in managing your finances, I am giving FREE Online Financial Planning!
Message me to book for an appointment on my facebook page: Our Money Grows
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