Man is the most intelligent creature ever created. However, when it comes to financial management, the use of the intellect falls by the wayside. A glaring example is the spending habit. The mental faculties of the human consumer somehow malfunction when shopping. Impulse buying takes precedence that exercising self-control becomes a futile effort. Perhaps a crash course on how to stop impulse buying can help to correct this rash spending pattern.
The consequences of impulse buying-
The human brain, unfortunately, will not send warnings to the person that he or she is overspending. It is up to the individual to discern when to hit the brakes or carry on. Actually, the insatiable nature of man is the root cause of it all.
The aftermath of unrestrained impulse buying is a mountain of debt. Before you part ways with your cash or hand over your credit card for swiping, think twice. The consequences are weighty. Many are unconsciously falling into a debt trap.
If the splurges are not nipped in the bud, it would be difficult to cope with the mental anguish that will ensue. You can avoid being cash-strapped due to impulse shopping with these effective ways. There will be enough money left for better use.
8 effective ways to stop impulse buying once and for all
Stick to the budget
If you have a monthly budget, have the discipline to stick to it at all costs. Budgets serve a specific purpose. It’s prepared precisely because you want to list down the all recurring payables as well as the basic necessities.
Whatever is left is the ‘free’ or disposable money which you can spend on binges or indulgences. It would be good to earmark a portion for savings or set up an emergency fund. Having cash for unforeseen expenses is a clever financial strategy.
Do program spending
In today’s digital environment, it’s very easy to keep customers engaged and wanting. Whether it’s the multi-channel or omnichannel approach, the strategy works. The various ways to reach out to customers make shopping a seamless experience.
So whether it’s online, physical in-store or print media, the key is to program your spending. Refer back to your budget to see how much you can really spare.
Otherwise, you have to hold your horses and wait. Be sure any spending will not disrupt your budget. The moment it dents your monthly plan, starting over can be quite a challenge.
Use your credit card only when necessary
If you don’t have money to spare but unable to resist the urge, the tendency is to forward spend. What happens next is the irresponsible use of the credit card. Using the plastic for non-essential items is actually taking on a bad debt.
Your purchasing power from the credit card is not ‘real’ power. The measure would still be your actual cash flow. The reckoning comes when the bill for the current purchase comes.
Usually, it adds to your previous card balance. The payable compounds if you pay only the minimum amount due. If the pattern continues and the balance swells, a financial disaster looms.
Compute the spending in terms of man-hours
Another effective tactic to beat impulse spending is to equate the intended purchase to your man-hours. When you know exactly how many days it will take you to recover the amount, you’ll be more restrained.
For bigger and over-the-top purchases, it might take months. If the purchase isn’t, hyperbolically, a matter of life and death, then delay it. You don’t need to break your back to satisfy your whim. Save the earnings for worthier purchases.
Lessen your mall visits
If it can be avoided, lessen or do not visit the malls at all. The compulsion to buy is at its strongest in shopping districts. Unless you’re there to buy an essential item, it would best to stay away.
Window shopping will only whet your appetite and switch on your want not need. Bring your ready list if you’re doing grocery shopping. The enticements in supermarkets are the same as in department stores and boutique shops.
Cut down your hours spent online
Retail therapy in the current setting no longer means physical store visits. Ads, sales promos, and other interesting offers from various online shops abound. Also, all sorts of enticements dominate your favorite social network sites.
In truth, retail therapy has become more expedient. Imagine the shopping convenience in the comforts of the home. The more time you spend looking at product catalogs on the net, the more you get tormented. A single click to select a product can be habit-forming.
In case you’re one of the multitudes who surfs the net in the evening onwards, beware. An online shopaholic is born every minute. You don’t want to be counted as a statistic to this growing number. This nighttime activity can relieve the day’s stress no doubt. However, ,you’re setting the stage for impulse buying.
Don’t resort to drinking while navigating online shops. If you’re intoxicated, you’ll be a daring shopper and forget about the budget altogether. The bills can be heavier than the next day’s hangover.
Always check the product reviews
Use the vast resources and information found on the internet to your advantage. Before buying any item online, read the verified product reviews. You can save a lot by going through product guides, price comparisons, store reputation, and return policies among others.
A smart shopper will always go for value for money. Try to recall the recent purchase which you consider as a waste of money. You’d like to avoid a repetition. It pays to be level-headed when confronted with the urge.
Develop the willpower to quell your wants. Make a resolve that from here on, all purchases should be worth every penny.
Think investing not shopping
The problem with impulse shopping is that most purchases are perishable. The satisfaction you derive is fleeting. When another product tickles your fancy, the compulsion comes back. It’s a repetitive cycle that produces nothing of value.
Be an intelligent shopper and think investment. Rather than pamper yourself in reckless spending, think of how you can preserve your hard-earned money. Consider bank products instead.
Place your money in interest-bearing time deposit accounts. The lock-in period will prevent you from spending money. On the maturity date, withdraw the interest and roll over the principal. You can start building a spending fund from out of the accumulated interest earnings.
Further, focus on buying things that will appreciate in value over time. Buying jewelry, for instance, would be better than a trending outfit or the latest smartphone model.
The examples are shown here tell you what other ways you can do with your money besides spending. Impulse buying is the fastest means you can lose it.
Focus on your financial goals
Impulse buying is a persistent problem for the affluent professional. Almost everyone is prone to this undesirable behavior. It wrecks your financial budget and delays your timetable to achieve a stable financial future.
Fixing the practice won’t happen overnight. But it can be stopped. Apply the effective ways on how to stop impulse buying and remain focused on your financial goals. If you can stop impulse buying, it can be a thing of past. And financial freedom is the reward.