Impulse spending can be a major problem when trying to create a stable financial future like Jason Hartman recommends. Here are some tips to curb impulse spending.
One common way to curb habitual impulse spending is to set a “time rule.” Whether the time rule is a 30-day rule, or a 1-hour rule, it can work wonders. It’s a good idea to set a longer time rule based on how strong your impulse habits are. When you feel like buying an item, make
the decision to wait 30 days. If you still want it in 30 days, it might be worth buying. If you’ve forgotten about the item within the set time period, it probably wasn’t worth purchasing.
2. Watch Who You Shop With
Shopping with someone who frequently impulse buys isn’t going to curb impulsive habits. They’re more likely to convince you to buy something unnecessary than to steer you away from it. So, if you like to shop socially, do it with people who have frugal spending habits.
3. Monitor Yourself
If impulse spending is a hefty problem, make it a point to monitor spending habits. Carry a notebook at all
times, and mark it whenever you want to buy something. This will help you feel more conscious about the urges, and by becoming more aware of spending habits, it can become easier to take control.
4. Only Carry Cash
Instead of relying on a checkbook or credit/debit card, use only cash. It may seem a little inconvenient, but that’s the point. Also, carry large bills. Most people feel less inclined to spend large bills because it can be a hassle to break them. Also, tangible cash serves as a reminder that when you buy things, real money is being spent.
5. Change Your Shopping Habits
How and where you shop probably has an impact on your normal spending habits. So, to change impulsive tendencies, consider changing location and shopping method. For instance, if you like to shop at the mall for clothing and constantly run into things you just can’t go on living without,
try shopping online instead. This way, it’s easy to find the necessities, put them in the cart, and check out.
6. Shop Only in a Good Mood
Shopping when upset is dangerous because of how easy it is to buy a product just to cheer up. It’s better to stay home and do the things you love, or go on a nice, brisk walk. Stick to shopping when you’re in a good mood, and you might spend less.
Monitor impulse spending to avoid throwing away valuable money. Instead of spending compulsively, make smart investments into income property and put the money to work. (Top Image: Flickr | 401(K) 2012)
The Young Wealth Team