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Starting Today You Can Stop Online Impulse Spending If You Follow These 7 Ways

Starting Today You Can Stop Online Impulse Spending If You Follow These 7 Ways

Online shopping is the best kind of window shopping you can do! You can sit around in your pajamas, regardless of the time of day, and shop for anything you can imagine. Unfortunately, this means it’s way too easy to let yourself spin out of control. Time flies when you’re surfing the Internet, and you might not even realize how long you’ve been shopping or how much you’ve spent. Check out these tips on how you can stop online impulse spending.

1. Pay from a single account.

Having multiple accounts makes it harder to keep up with your finances. Whether you use a bank account, credit card or Paypal account for online purchases, make sure you use just one of those. That way you can always know how much you have in the account and how much you’ve spent.

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2. Don’t save your credit card information.

One-click checkout is the easiest thing to do when you’re shopping online — it’s literally just one click to enter all your payment information and shipping address! But it’s this ease that makes it more likely you’ll spend more online, because you don’t even feel like you’re shopping. There’s no exchange of money for purchases — it’s all visual, through a computer screen until a box arrives at your door a week later.

3. Unsubscribe from promotional emails.

Sometimes you don’t even think about shopping until you get that email promoting the latest big sale your favorite store is having. Then it just seems stupid to miss out on major savings, right? Wrong! Unsubscribe from promotional emails from any store so you’re not tempted to buy when you don’t need to. You shouldn’t shop just to shop, you should only shop when you need a particular item. Not getting tempting offers in your inbox will help change your approach to shopping – and help you save time checking emails!

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4. Don’t give out your email address when you shop.

Most stores ask for your email now when you check out. They do this just like they used to ask for your phone number — because they want to contact you in the future and try to get you into their store! Instead of giving out this information, just tell them you prefer not to give out your email or phone number. They won’t badger you about it, they’ll just say ok and leave that blank. This will cut down on those promotional emails mentioned above.

5. Limit your time shopping online.

It’s so easy to waste time online just clicking through links, seeing what you wish you could buy if you had the money, checking out what the store recommends for you, seeing what people bought who liked the same item as you. Before you know it, hours have slipped away! It’s ok to shop online because, most of the time, it’s way more efficient than going to stores in your city. But make sure to limit time when you shop (or window shop!) online. Set a physical timer if you need it, but try to keep track of it yourself. Promise to just look for one item, or on one site. It’s way too easy to impulse buy when you’re just surfing the internet aimlessly. When your eyes get tired and you can’t scroll through pages anymore, you’ve probably had enough!

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6. Research every purchase.

Instead of simply clicking to put an item in your cart, do research first. Even if it’s not a major purchase, checking a few websites can help you make the best decision. Read reviews from people who have bought and used the product. Make sure it will last for a long time and does exactly what it says it will do. Make sure you don’t need to buy additional accessories. Check a few other websites and see if you can find it even cheaper, or with free or faster shipping. Sometimes you’ll find that you don’t really need this exact product, or that you’d rather wait to find it cheaper at another outlet.

7. Keep a wish list.

You don’t have to buy everything right now! A lot of websites allow you to keep a wish list, or add things to your cart and save them to purchase later. Or you can keep a list in a text document, complete with links. This ensures that you’ll remember cool things you’ve seen for yourself or others, but you can wait and make sure you still want or need them at a later date, instead of buy them right at that moment when you might not have the finances.

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Featured photo credit: Jorge Franganillo via flickr.com

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Last Updated on June 1, 2020

How to Pay off Debt Fast Using the Stack Method (A Step-By-Step Guide)

How to Pay off Debt Fast Using the Stack Method (A Step-By-Step Guide)

Whether it’s consumer debt on credit cards, student loans[1], or a mortgage, most people find themselves weighed down by debt at some point in their lives. This can keep us working jobs we hate just to pay the bills and keep our heads above water. By learning how to pay off debt fast, you can release this burden and remove some of the stress from your life.

The Stack Method is one way to do this. Once you understand it, you too can learn how to pay off debt fast.

What Is the Stack Method?

The Stack Method, often referred to as “debt stacking,” requires making a list of all your sources of debt, starting with the debts that incur the highest interest. Then, you make the minimum payments for each source of debt, but when any extra money comes your way, you throw it at the debt at the top of the list. This way, you eliminate the debts with the most interest first, dropping extra costs to a manageable level in a fairly short amount of time.

To get started with the Stack Method, go through these steps and overcome those mountains of debt today.

1. Stop Creating New Debt

Most people do not receive training in handling money and how to live within their means. If you’re in debt, then you’re probably one of these people, and it’s time to bite the reality bullet.

It’s going to be impossible to get out of debt unless you retrain your financial habits right now.

You must make a stand against all the marketers trying to take your hard earned money or offering easy finance. You don’t need more stuff to make you happy. What you need is financial peace of mind.

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So cut up your credit cards or freeze them. I mean this literally. Put them in a container of water and stash them in your freezer. Then, when there’s an opportunity to spend, you have time to thaw out (you and the credit cards) and really decide if you need that purchase.

2. Rank Your Debt by Interest Rate

Make a list of all your debt with amounts and the interest rate. The highest interest rate should be at the top as this is what you’ll pay off first.

Paying off your high interest debt is the key to the Stack Method.

Interest is a powerful weapon, and right now the bank or other financial institutions are using it against you. Interest significantly increases the amount you need to pay back, and often we’re completely unaware of how much that is.

For example, if you have a $10,000 credit card debt at 20% interest where you pay a minimum payment of $200 a month, you will end up taking 9 years and 8 months to pay off the actual amount of $21,680 including $11,680 in interest!

3. Lower Your Interest Rates

You can often lower your credit card interest rates by doing a balance transfer. This means moving your credit card to another bank, where they will lower the interest rate to get your business[2].

Shop around and try to get the lowest interest rate for the longest duration (preferably until it’s paid off completely). Just make sure you’re reading the terms and conditions carefully so you don’t get stung by the new bank in other ways.

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Once you’ve done this, you can order your list of debt again if interest rates have shifted.

4. Create a Strategic Spending Plan

This is where we improve your financial control from Step 1. Take a piece of paper and write down your income after tax and all the expenses that you have. This will include the minimum payments on all your debt.

Look at your expenses, and then rank them in order of importance to you. Look at the items on the bottom of your list and decide whether you’d rather have them or be financially stable. The objective is to create a spending  plan where your expenses are lower than your income.

You also decide how much you are willing to spend on each area of your life. You can allocate amounts for rent, groceries, eating out, buying clothes, and other activities. However, realize that once you’ve spent your allocated money, there’s no dipping into other areas[3].

It also helps to have a “Fun Account” that you can spend on what you like, and an “Emergencies Account” in case your car breaks down or other unfortunate incidents come up.

You also want to include the extra amount you’re going to use to pay off debt in your spending plan.

Can you afford $20 a week? $50? $100? $200 or more? It’s important that you get a realistic number that you can commit to each week without fail, and this is your Stack Repayment.

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5. Create a Payment Schedule

The first part of the Stack Method is to cover the minimum payment on every single debt you have. Any time you miss a payment, you incur fees, and these add up quickly. This also includes making the minimum payment on the debt with the highest interest rate.

Then for the debt with the highest interest rate (your Target Debt), you’re going to add the Stack Repayment from your strategic spending plan. You apply this Stack Repayment and the minimum payment until that debt is paid off in full.

As your official minimum payment decreases, you add that extra amount to your Stack Repayment. So, as your minimum repayment drops, your Stack Repayment increases equally. This will compound how fast you pay off the Target Debt by adding even more to the payments you’re making.

6. Reward Your Progress

You want to track your Target Debt so you can see your progress along the way. You can also decide on milestones that you’re going to celebrate and reward yourself for.

A reward doesn’t have to cost money, but if it does then it comes from your previously allocated spending plan.

This is an important step as it will keep your motivation going when you feel your willpower fading.

Just like you’ve trained yourself to brush your teeth and shower, you can train yourself to manage your money. Feel great that you’re now entering the 10-20% of people who are actually responsible with money.

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7. Compound Your Results

Once you pay off your Target Debt, have a huge celebration and congratulate yourself. Then, you move the Stack Repayment (which includes the previous minimum payment now) to the next debt with the highest interest rate.

This becomes the new Target Debt, and you are using your Stack Repayment amount plus the minimum payment for the new debt.

This is why the Stack Method is so powerful. As you decrease a debt, you actually increase your Stack Repayment amount. This means the second debt will get paid off even faster, the third even faster than that, and so on and so on until you are completely debt free.

8. Be Kind to Yourself

During this process, your resolve is going to be tested multiple times. Maybe you’ll have an emergency like your car breaking down or the need to travel for a sick relative. The important thing is to not throw up your hands in despair and slipping back into your old habits.

Life will test your commitment to your new responsible money attitude, and it’s up to you how you respond. When things go wrong (and I guarantee they will), you need to shrug it off and get back on track.

Show compassion when you accidentally go over your target spending amount and decide to do better next week.

The Bottom Line

The Stack Method is a powerful tool, but it’s up to you whether you use it effectively. If you really want results, then bookmark this article immediately and start working through the steps.

It’s only by the decision you make right now that you will enjoy a debt-free future and live a financially responsible life.

More Tips on How to Pay off Debt Fast

Featured photo credit: NeONBRAND via unsplash.com

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