Nov 12, 2008

How to Break the Bad Spending Routine and Shopping Wisely


Set long-term goals. Let me see---you are spending big money on such small purchases like the vending machine snacks, sodas or coffee? Well, here is a simple way to stop the habit. It is better to pick what you really want, like an emergency fund, getting out of debt, or a much-needed vacation. Tell yourself always this goal every time you like and feel tempted to spend money on not so necessary things. Then save your money in a safe place, like in a bank. In the long run, you will be able to enjoy your much hard-earned money or you are in a beach somewhere in Hawaii enjoying your vacation. Your habit breaking will be so rewarding.

Pay Cash Only. Avoid using credit cards as much as possible. You tend to overspend in using such cards. Make it a point to always leave your credit cards at home and always prefer to pay cash only or use debit cards for all what you buy.

Get Used to Shopping with a List. Most of us go inside a store with the purpose of shopping for just a few items and we end up with huge bags containing different shopping stuff. Fortunately, this situation can be fixed when you go shopping with a list. It is really up to you on how you will strictly follow the list that you have. Bear in mind to be honest with your list and jot down everything that you really need. If you are tempted to buy something not in the list, just make a note so that you can add it to the next shopping list.

Differentiate between your Needs and Wants. If you see a product, ask yourself first if you really need the product before deciding to make a final purchase. If you really need the product and are within your budget, then proceed and purchase it. However, if it is a want, give it a second even a third thought and decide on the impact if you purchase such product. Your purchases will have an impact in your life; be sincere about it and determine if the product you really want is worth the asking price.

If Possible, Shop with a Basket. It is better to avoid the trap of spending more when you take a cart when you shop. Taking a cart shows you have a lot to buy. Instead, grab a basket or simply just carry your items. The tendency is if you have a cart, you will be tempted to shop and shop as there is so much space to fill in your shopping cart.

Let another Person do the Shopping for you. Yes, this setup applied to me personally. Let someone else shop for you. Just do your shopping list and give it to someone you trust. You will be able to avoid the items that you will shop impulsively in the store if you stay at home.

Start a Cooling Off Period. This will help you a lot especially if you see a big, expensive item or gadget. Start a 24-hour cooling off period and it will give you enough time whether the item is really a need and if you can afford the said gadget. With reputation monitoring made easy, you can even review online about the item you most especially like to purchase. But if after 24 hours, you still think about purchasing it, then go ahead and buy your much-coveted gadget.

Bring Along a Shopping Friend. A shopping friend can be your buddy or a family member who can voice out their opinion if you are about to make a purchase. Make sure to shop only when they can go with you. This tip will be helpful for those who have shopping impulses. If you have a mobile phone with you, I suggest you can still go ahead with your shopping alone, but better call your friend if you are in a middle of the shopping turmoil.

Provide Yourself a Shopping Allowance. Check your budget and make a decision on how much you can allot for your own shopping allowance. Take this amount from your bank account at the start of the week or every month; you can spend it without any guilt feeling. Always remember that if the money is gone, the shopping also stops with no exceptions.

Study your Shopping Selections. Let us say you are in a store and falling in line in the cashier counter already. I suggest you study the items that you are about to buy. Check if you have all the items already that you plan to buy and also inspect if there are items that you should return or maybe purchase it the next time you shop. Continue editing your choices until you make a final decision about them. In that way, you will be able to go out of the store with a clear conscience.

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