Are you an impulsive shopper? If you find yourself making a lot of impulse purchases and maxing out your credit cards by buying things that you can’t afford, you need to get your spending under control. Believe it or not taking control of your finances and spending can be very freeing, reduce your anxiety and help you achieve some of your most important financial goals instead of wasting your money on impulse purchases.
The first thing you need to do is set up a budget. If you do a lot of impulse spending you probably don’t have a very clear idea of where your money is going. Make a commitment to write down everything that you buy for several weeks. Carry a small notebook with you and each time you make a purchase record it in your notebook. Once you have done this for a few weeks, make a list of your income and monthly expenses. Group all the monthly expenses into categories like insurance and utilities. You can use financial planning or budgeting software to make your job easier. Take this information on your income and expenses and come up with a budget. Make a commitment to stick to it.
While you are making your budget, make sure that you set aside a portion of your income to go towards savings. Set up a savings account and pay yourself first by having money automatically deposited into your savings account, either through paycheck automatic withdrawals or automatic transfers from your checking account.
If you find yourself making impulsive purchases learn to wait before you spend any money. On major expenses, wait at least twenty four hours before making a final decision to buy. If you have to stop and think about buying something you are less likely to make impulsive, unwise decisions. You should also plan your shopping trips in advance by preparing shopping lists.
Another way to get your spending under control is to make a commitment to pay down your credit card debt. Take your credit cards out of your wallet and stop using them. Make a commitment to pay down your debt instead of maxing out your credit card limits. This is key to curbing your spending. It’s too easy to pull out a credit card and charge away, especially if you are prone to impulse purchases.
If you follow these simple steps of setting a budget, waiting before making purchases, and stop using your credit cards you will be well on your way to getting your spending under control.