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10 Effective Ways To Avoid Impulse Buying

10 Effective Ways To Avoid Impulse Buying

I might not be good at too much, but saving money is something I’m absolutely anal about. My family has taken to calling me “Fishhooks,” implying I line my pockets with sharp objects in order to resist the urge to reach in and pull out some cold hard cash whenever something at the store catches my eye. The truth is, I just use my head when I’m at the mall, and don’t let the sales traps get to me. Whenever faced with the prospect of purchasing something, I usually go through at least a few of these thoughts before making my decision:

1. Calculate how much work it would take to pay for the item

This is a big one, and I always get made fun of for it. My wife even anticipates it, and will launch a preemptive mimicry of myself saying “That’s like, three and a half hours of work!” whenever she’s looking at a new dress or something. But really, I look at the item’s longevity and meaningfulness, and figure out if it’s worth it or not. For example, when looking for a new PS4 game to buy, if I see a game might take 60-80 hours to complete, that equates to less than a dollar per hour. Totally worth it over time. On the other hand, a two hour movie would cost me around $40 (yes, I would treat my wife, I’m not that cheap), or $20 per hour. See the difference?

2. Don’t carry all your credit cards

If you have multiple credit cards, and plan on hitting the mall, just take one for emergencies and planned purchases. And check your limit before you go out. That way, you know how much you can spend while still having some left over in case disaster strikes. There’s not much worse than spending a few hours on a shopping trip, only to get a flat tire on the way home and be out $400 instead of $200. Keeping your other credit cards home saves you from spending way too much, and ending up getting in over your head.

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3. Don’t go therapy shopping

There are so many better ways to ease stress that don’t involve spending any money. Shopping when stressed can lead to a vicious cycle: you’re stressed, so you buy stuff, then you’re stressed because you spent money, so you buy more stuff…and it continues. Not that gambling while stressed is something I would ever advocate, but at least there you have a chance of getting some money back! Just kidding. If you’re stressed out, try going for a walk or listening to music, but avoid spending money at all costs.

4. Block shopping sites when using your computer

I shouldn’t talk, because I have ten other tabs open right now. However, I haven’t clicked on a single one since I sat down to write this (I know, go me). But really, I remember the college days, in which I would rather have been doing almost anything than sitting down to write ten pages on Chaucer. The internet has made it way too easy to buy buy buy, without thinking about the purchase first. If you need to, block all other sites while you’re trying to get work done, and save the shopping spree for another time.

5. Don’t go shopping in groups

I know that’s pretty counter-intuitive to most “shopping trips,” but really: When I go shopping with my wife, we almost always end up picking up something we didn’t plan for. I’m not blaming her, either. Either one of us end up saying “Why not?” when the other one asks “Should I…?” On the other hand, whenever I go out by myself, I make it a point to buy only what I planned to buy. Not only to I make the plan and stick to it, but having the plan helps me stay focused and ignore other sales going on around me. My wife on the other hand…

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6. Don’t drink and shop

Common sense people! Okay, if you’ve had a few, common sense might not be your strong suit right now. Don’t worry, we’ve all been there. But just like you should avoid texting your ex at 2AM, you should also avoid Amazon like the plague. Even Fishhooks over here once woke up to see a new computer monitor in his “recent purchases,” even though he doesn’t even use his computer for gaming. Luckily I was able to cancel it, and no harm was done. But I did learn my lesson: Amazon is not a drinking buddy.

7. Put away money you were going to spend

Easier said than done, right? Well, it will pay off in the long run. Add up all the extra “stuff” you’ve bought over the past year, then look up prices of trips to Aruba. I definitely know some people who spend more on the former. And even if you don’t have enough for a trip to the Caribbean, you’ll have enough at the end of the year that you can splurge on a few things and not feel bad about it. And you might be able to pay off some of those credit card bills, to boot.

8. Donate to charity

Nothing will make it more clear to you that you don’t need another new pair of shoes than seeing someone on the sidewalk who actually does. Sometimes it’s best to take the money you were about to spend on yourself and give it to someone who truly needs it. If you were going to spend the money anyway, at least put it towards a good cause. Just think: the new gadget or dress you were about to pick up might improve your life a little, but buying a week’s worth of groceries for someone in need can change their life completely.

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9. Spend money on others

Like me. My address is…

Just kidding. But like I said, if you’re going to spend money anyway, spend it on a friend or family member to give thanks. No matter what you get them, it will surely be much more meaningful than whatever you were going to buy for yourself. I like to think that money has no actual value (it helps to think that way when you’re broke!), but it can have meaning if spent in a way that will make yourself and others around you happy. Share the wealth, even if you don’t have much of it.

10. Spend on experiences, not “stuff”

I’m pretty minimalistic, and I’ve said it before that I’d rather save money than buy some gizmo or something I won’t need in a week. But when it comes to going out with my wife, I spare no expense. I’d rather go without money in my wallet for a week and give her a nice night on the town than save and miss an opportunity we might not get tomorrow. Of course, we set limits, but you can’t put a price tag on a good time. So, even though this entire article has been about saving money, I guess I should wrap it up with: Don’t get married. Just kidding! It was the smartest thing I ever did. Save your money, so you can have a life with someone you love.

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Featured photo credit: Flickr via flickr.com

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Published on November 20, 2018

The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

The truth is, there are many “money saving guides” online, but most don’t cover the root issue for not saving.

Once I’d discovered a few key factors that allowed me to save 10k in one year, I realized why most articles couldn’t help me. The problem is that even with the right strategies you can still fail to save money. You need to have the right systems in place and the right mindset.

In this guide, I’ll cover the best ways to save money — practical yet powerful steps you can take to start saving more. It won’t be easy but with hard work, I’m confident you’ll be able to save more money–even if you’re an impulsive spender.

Why Your Past Prevents You from Saving Money

Are you constantly thinking about your financial mistakes?

If so, these thoughts are holding you back from saving.

I get it, you wish you could go back in time to avoid your financial downfalls. But dwelling over your past will only rob you from your future. Instead, reflect on your mistakes and ask yourself what lessons you can learn from them.

It wasn’t easy for me to accept that I had accumulated thousands of dollars in credit card debt. Once I did, I started heading in the right direction. Embrace your past failures and use them as an opportunity to set new financial goals.

For example, after accepting that you’re thousands of dollars in debt create a plan to be debt free in a year or two. This way when you’ll be at peace even when you get negative thoughts about your finances. Now you can focus more time on saving and less on your past financial mistakes.

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How to Effortlessly Track Your Spending

Stop manually tracking your spending.

Leverage powerful analytic tools such as Personal Capital and these money management apps to do the work for you. This tool has worked for me and has kept me motivated to why I’m saving in the first place. Once you login to your Personal Capital dashboard, you’re able to view your net worth.

When I’d first signed up with Personal Capital, I had a negative net worth, but this motivated me to save more. With this tool, you can also view your spending patterns, expenses, and how much money you’re saving.

Use your net worth as your north star to saving more. Whenever you experience financial setbacks, view how far you’ve come along. Saving money is only half the battle, being consistent is the other half.

The Truth on Why You Keep Failing

Saving money isn’t sexy. If it was, wouldn’t everyone be doing it?

Some people are natural savers, but most are impulsive spenders. Instead of denying that you’re an impulsive spender, embrace it.

Don’t try to save 60 to 70% of your income if this means you’ll live a miserable life. Saving money isn’t a race but a marathon. You’re saving for retirement and for large purchases.

If you’re currently having a hard time saving, start spending more money on nice things. This may sound counterintuitive but hear me out. Wouldn’t it be better to save $200 each month for 12 months instead of $500 for 3 months?

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Most people run into trouble because they create budgets that set them up for failure. This system won’t work for those who are frugal, but chances are they don’t need help saving. This system is for those who can’t save money and need to be rewarded for their hard work.

Only because you’re buying nice things doesn’t mean that you’ll save less. Here are some rules you should have in place:

  1. Save more than 50% of your available money (after expenses)
  2. Only buy nice things after saving
  3. Automate your savings with automatic bank transfers

These are the same rules that helped me save thousands each year while buying the latest iPhone. Focus only on items that are important to you. Remember, you can afford anything but not everything.

How to Foolproof Yourself out of Debt

Personal finance is a game. On one end, you’re earning money; and on the to other, you’re saving. But what ends up counting in the end isn’t how much you earn but how much you save. Research shows that about 60% of Americans spend more than they save.[1]

So how can you separate yourself from the 60%?

By not accumulating more debt. This way you’ll have more money to save and avoid having more financial obligations. A great way to stop accumulating debt is using cash to pay for all your transactions.

This will be challenging, depending on how reliant you are with your credit card, but it’s worth the effort. Not only will you stop accruing debt, but you’ll also be more conscious with what you buy.

For example, you’ll think twice about purchasing a new $200 headphone despite having the cash to buy them. According to a poll conducted by The CreditCards.com, 5 out of 6 Americans are impulsive spenders.[2]

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Telling yourself that you’ll have the discipline to not buy things won’t cut it. This is equal to having junk food in your fridge while trying to eat healthy–it’s only a matter of time before you slip. By using cash to make your purchases, you’ll spend less and save more.

A Proven Formula to Skyrocket Your Savings

Having proven systems in place to help you save more is important, but they’re not the best way to save money.

You can search for dozens of ways to save money, but there’ll always be a limit. Instead of spending the majority of your effort saving, look for ways to increase your income. The truth is that once you have the right systems in place, saving is easy.

What’s challenging is earning more money. There are many routes you can take to achieve this. For example, you can work long and hard at your current job to earn a raise. But there’s one problem–you’re depending on someone else to give you a raise.

Your company will have to have the budget, and you’ll have to know how to toot your own horn to get this raise. This isn’t to say that earning a raise is impossible, but things are better when you’re in control right? That’s why building a side-hustle is the best way to increase your income.

Think of your side-hustle as a part-time job doing something you enjoy. You can sell items on eBay for a profit, or design websites for small businesses. Building a side-hustle will be on the hardest things you’ll do, be too stubborn to quit.

During the early stages, you won’t be making money and that’s okay. Since you already have a source of income, you won’t be dependent on your side-hustle to pay for your expenses. Depending on how much time you invest in your side-hustle, it can one day replace your current income.

Whatever route you take, focus more on earning and save as much as possible. You have more control than you give yourself credit for.

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Transform Yourself into a Saving Money Machine

Saving money isn’t complicated but it’s one of the hardest things you’ll do.

By learning from your mistakes and rewarding yourself after saving you’ll save more. What would you do with an extra $200 or $500 each month? To some, this is life-changing money that can improve the quality of their lives.

The truth is saving money is an art. Save too much and you’ll quit, but save too little and you’ll pay for the consequences in the future. Saving money takes effort and having the right systems in place.

Imagine if you’d started saving an extra $100 this next month? Or, saved $20K in one year? Although it’s hard to imagine, this can be your reality if you follow the principles covered in this guide.

Take a moment to brainstorm which goals you’d be able to reach if you had extra money each month. Use these goals as motivation to help you stay on track on your journey to saving more. If I was able to save thousands of dollars with little guidance, imagine what you’ll be able to do.

What are you waiting for? Go and start saving money, the sky is your limit.

Featured photo credit: rawpixel via unsplash.com

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