“It’s Better to Want Than to Owe”

All of us have experienced those impulsive shopping time where we seem to buy (usually) expensive things that, to be honest, we do not really need. Even though it is okay to go with what your impulse desires every once in a while, you need to be able to control your shopping urges. One of the things that you need to always remember would be that “It’s better to want than to owe”, because a lot of time people stretch their finances thin to buy stuff that they extremely want regardless of whether they need it or not. If not controlled carefully, this spending habit will definitely cause financial trouble, and to prevent that from happening, here are some tips which you can refer to whenever you are in doubt:

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Think About Financial Margin

If you are one of those persons who seem to always be spending the time trying to sort out how to pay credit card bills (especially which one to pay first while figuring out plans to pay the others perhaps within a week), you may consider cutting back on your spending habit in order to feel something that is called a financial margin. Having a financial margin in your life is actually really nice and relaxing. Instead of living from one paycheck to another, you will understand that it is possible to spare some money out of your monthly salary and be worry-free when it comes to handling emergency expenses and needs because you have this reserve money on hand. It actually helps you to reach a financial freedom, where you will be able to manage money efficiently regardless of how much you may earn per month.

Deal With The Urge Knowingly

Remember that, even though you are the biggest cause and contributor to those impulsive shopping sequences, there are different kinds of strategy that stores use to trick your brain into buying their products. This includes placement of product and color selection amongst others. Stores choose attractive and eye-catching popping colors not only to their products but to the price tag as well. You may realize that most of the time the price tags incorporate red color, which has been proven to increase the chance of taking action and hence it is commonly used for sale signs and advertisements. Stores also put their products in such a way that you will have to walk around to get the stuffs that you really need, where they put items on platforms that are easy to reach which will encourage you to actually touch them. Take note that, once you pick something up, you will become more associated with the object and hence it is more likely that you will buy it. Resist these tricks, and deal with your urge consciously for example by bringing a shopping list.

Calculate Your Total (Impulsive) Spending

Go through all of the stuffs that you have (which also helps to declutter), and put aside things that are resulted from your impulsive shopping trips or the things that you did not really need but ended up buying anyway. Start writing down how much you spend for each of the time, and if you do not remember the exact price you can always estimate and after you are done with all these stuffs, add the numbers together. You will then see how much your spending habit can actually cost you hundreds or even thousands of dollars annually. To make it more painful by counting down your hourly salary and then divide your previous total spending amount by your hourly salary to really see how much time it took for you to actually “earn” these things.

 

 

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