Let’s begin with defining the term ‘Impulsive Spending’. Oh… No …Don’t Close this tab, I am not going to give a two sentenced boring definition to this term, a dictionary could do that job.
Do you often find yourself going to the super market with just the intention of buying ingredients for the next days meal and end up bringing home a new crockery set when you already have one on your dining table and couple of them in your cupboard?
Since you feel a constant need to keep yourself updated with the developing technology, instead of just acquiring knowledge about it, do you end up changing your mobile phones every 4-5 months to keep in par with the new trend?
Get the picture now? This is what is called impulsive spending and this has got to stop right now if you want to save enough to make a down payment for a new house / car, make a secure saving for your children, set up an ‘emergency fund’ and live life in peace after retirement.
These things are important in life because the feeling that you are saving enough for your future is much nicer than receiving credit card bills at the end of every month and dreading how you’re ever going to pay them.
So if you are a shopoholic or a victim to ‘impulsive’ spending, take an oath to begin a new spending habit right now to improve the quality of your life. All of a sudden you need not become stingy. But you should realize the importance to exercise frugality in order to enjoy long term financial benefits.
Here are few tips to avoid Impulsive Spending:
1) Always carry a list for shopping and stick to it (you are not allowed to add anything that is more than necessary to this list)
2) If you find yourself going out for dinner or lunch more than once a week gradually reduce it and bring it down to just twice a month. For all you know cooking at home with family could be more fun.
3) Are you a movie buff? There is certainly nothing wrong in being one. Instead of running to theaters for every new release, wait for the DVDs, Sign up for options like Netflix, bigflix or rent a movie from a nearby shop.
4) I understand that you are an ardent reader. What’s the use of piling up your book shelf with all your favorite books when you are not going to touch them for years to come? Become a member of a good library instead.
You need not follow all the above and give up on simple pleasures of life. Determine which of these is important to you. Be extremely frugal on things that matter little to you and spend a part of saved money on what interests you and the rest of it, make sure it goes to your savings or emergency fund.
Author: Rick Parker