Mall or online shopping can be addicting, and many succumb to the temptation. The easy access to online stores makes shopping more convenient. Clicking the “buy” button encourages impulsive buying which can put a big dent in your personal finances.
There are two reasons why people buy on an impulse:
1. Stress – Many people consider it as a stress-buster or stress-reliever. They love to window shop and find something that uplifts their spirits.
2. Lifestyle – Some people love to shop for what’s new and what’s hot. They shop the latest brands to be “in” fashion.
How do you break the habit of impulsive buying? Here are some suggestions:
#1- Pay in cash.
Stop using your debit or credit card. Usually, paying with cash limits your spending.
#2- Make a shopping list.
Before going out to mall or grocery stores, create a shopping list. Stick to the list and your budget. It will eliminate little impulse purchases. Make a habit of planning. Rank your priorities according to necessity.
#3- Create a 30-day waiting period.
This practice will keep you from making an impulsive purchase. If the infatuation for the item is still there after the waiting period, you can buy it.
#4 – Calculate the value of the item in terms of your life energy.
Divide the price by your hourly wage. The answer will show you how many hours you will work for the item you want to buy.
#5- Ask yourself before making a purchase.
- Will the purchase significantly improve your life?
- Does it meet your particular life goal?
- Does it make you feel better?
- Will it ease or simplify your daily living? Be honest with yourself.
At the end of the day, always think of how your spending affects your long-term personal finances and life goals. Always keep your saving goals your top priority and ask yourself if the purchase will affect it.