Monday, 13 July 2009 10:46
by
Andy M
Choosing to save can be rather difficult, especially with today’s mentality of keeping up with your circle of friends. Many times these decisions to spend are impulse buys that are justified with the simple response, “I need this and everyone else has it.”
If we can control our impulse decisions that are responsible for a large portion of our monthly expenses we can make a significant impact and move towards choosing to save rather than the spending. One great way to control impulse buying is to set a budget for each type of expense you have and then stick to that budget. For example, set a budget for dining out, buying clothes, entertainment, cable or direct TV costs, etc. Using a budget helps to eliminate impulse spending. See the FYI video on budgeting for more insights into making a proper budget. One great tip on solving the impulse buying affliction is to have a rule of not making any unplanned purchases without waiting a week to decide if you really need the item before finalizing the transaction. Another great tip is only use funds that you have saved for unplanned purchases. Don’t ever charge impulse bought items. Using these two simple rules and really further your efforts to completely be in charge of your finances.
One additional tip is to always shop at the grocery store with a list. Studies show that consumers spend a considerable amount more than they planned on spending when they don’t use a list. Take that grocery store list mentality to other areas of your life that can have impulse buying associated with it. Use a list the next time you go shopping for back to school clothes, Christmas or birthday gifts, adding to your wardrobe for the next season, etc. You might be surprised how this easy practice can save you hundreds, even thousands of dollars in a year’s time. You will especially reap the rewards if you incorporate a budget within your shopping list.
Changing buying habits can be the most difficult part of living a budget. Many people are very good at developing budgets but the living the budget doesn’t work so well. And once you “fall off” the budget band wagon, it can often be very difficult to regain control and stop the impulse buying that creates havoc with your personal finances. Choosing to save rather than spending is certainly not easy but it can be achieved with just a few simple processes and tools.