Four Ways to Limit Impulse Spending
Do you ever feel like you spend too much money without planning your purchases in advance? Impulse spending is a very common problem however it often tends to go unnoticed until it has caused problems that are too large to be ignored. Perhaps you went a little too far past your budget, or perhaps you found yourself in serious credit card debt. Whatever the case may be, if you are feeling concerned about your impulse spending, this article can offer a few tips you might find helpful when it comes to cutting back.
- 1. Put Large Purchases on a 30 Day Wait List. Significant purchases, such as appliances, vehicles, or vacations, should always have a serious waiting time before any final decision is made. Most financial experts recommend creating a 30 day wait list for yourself, and using it for any purchase that constitutes more than 10% of your monthly income.
2. Go to the Store with a Plan. Before you go shopping, think about what you actually need and make a list. This simple exercise alone can help nip many temptations for overspending in the bud.
3. Use Cash. You have probably heard this tip before, and you may even think it sounds a little bit silly. But take our word for it: spending cash is psychologically harder than swiping the card. If you make an effort to pay with cash whenever possible, you will likely find yourself questioning your decisions a little bit harder.
4. Don't Shop Under Extenuating Circumstances. If you are feeling extremely hungry, tired, frustrated, excited, etc. then it probably isn't the best moments to go shopping. If you want to avoid impulse purchases, then try not to go shopping when you could be feeling impulsive.
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