Sometimes when walking around, you see some things which you admire and maybe you get to purchase them. This type of purchase is called impulse buying. Purchasing something that you didn’t plan for. Making such purchases is a dangerous idea for your budget.
Consumers spend more than $5,400 per year. There are many reasons a person can make impulse purchases. Some people tend to take advantage of deal and discount and others just have a shopping habit that drive them to impulse purchase.
Impulse spending reduces your power of saving and investing. If you are not careful with this kind of purchase, you might find yourself into debts. For example, if you are using a credit card to pay for impulse purchase, it may be difficult to pay at the end of the month. If in any case you pay the minimum balance, you will be hit with interest charges. Even worse, in case you omit the credit card payment, you will end up paying high with a penalty interest rates.
How then do we avoid impulse purchases?
How To stop Impulse Purchases
1. Take some time and consider
Before you purchase anything, stop and ask yourself whether you need it. in cases where it is a must to purchase, then you need to move your budget around to make that purchase work. Purchasing without consideration puts you in a financial risk.
2. Make and stick to your budget
If you need to have financial discipline, then budgeting is a way to go. A budget will help you separate your finances into essential needs accounts, emergency fund accounts, debt accounts and life goals accounts. Allocating your money to different accounts can limit your impulse spending.
3. Walk away from temptation
To stop impulse, avoid places that sell the items you may want to buy. When you are surrounded by things you have ever wanted to buy, you get attracted to them hence the urge to purchase them. avoid the temptation and you will find yourself purchasing those items you really need.
4. Limit the cash you carry and credit
Anytime you are walking out, ensure you carry the exact cash you are to use. This will limit you from making extra purchases. If you impulse buy online, you can freeze your credit cards.
5. Keep off from social media
Social media is flooded with products marketing such that even if you get there to see how your friends a faring, you will be exposed to so many ads. These ads may influence you to buy the products even if you dint plan for them. Research shows that, about 55%of consumers purchase their product through the social media. To avoid being part of this statistics, you will have to avoid social media.
6. Remind yourself of your goals
Keep reviewing your goals time and again. Know that you cannot reach your goals if you are not spending according to your plan. Sure, spending a little extra here or there might not seem like a big deal. But every impulse purchase you make takes away from all of your hard work. It will take you that much longer to get out of debt or build up your emergency fund. Are you willing to sacrifice these goals for a few moments of shopping bliss?
You are well armed with the tips you can use to stop impulse buying. It is then easy to avoid your next impulse buying.