Is impulse buying keeping you in debt?
We’ve all been there. As soon as some money hits your account that amazing, new gadget crosses your mind and you realise how much you need it in your life. But, do you really?
Impulse buying is not only a common thing, it is also the biggest enemy of your monthly budget and long-term goals, especially if these involve saving money or getting out of debt. However, the urge to buy something on the spot is real and fighting against it can be difficult. Here we give you some tips on how to avoid impulse buying to help you get back on track.
Learn to control your emotions
Have you ever had a bad day and decided to treat yourself to something nice to cheer you up? Or, on the other hand, have you ever been so happy about something that you ended up buying drinks for everyone at that very expensive restaurant to celebrate?
Learning to control your emotions, mood-swings and urges are the best way to stop yourself from spending cash on the spur of the moment.
Set yourself a waiting period
Next time you want to buy something, instead of reaching for your wallet, write it down on a list along with the date when you first considered buying it. If after a few weeks the urge to have it has disappeared then you’d have just avoided spending your money on something you didn’t really want.
Avoiding impulse buying doesn’t mean that you have to stop buying full stop; the point is identifying when you’re buying because of an urge rather than a need. Setting yourself a waiting period to buy things will help you do just that.
Use your hourly-wage as a metric
Another good way to stop yourself from splashing out is to compare the price of that new item you want against your hourly wage. Doing this will tell you how many hours you had to work in order to be able to afford your new “must-have” and will help you put things into perspective. Is that shiny gadget really worth 40 hours of your working time?
Bury your credit card
We don’t mean this literally… well, kind of. Credit cards and the way they make us believe that we can spend cash on the spot without having to worry are one of the main reasons why we buy on impulse.
If you usually find yourself using your credit card more often than you should then consider leaving it at home. If you are an online-buyer then try hiding your credit card in a place that’s not easy to reach, like inside of an old suitcase in the attic. So next time you feel the urge to buy something you will have to assess if it’s worth taking a ladder out and climbing up all those steps.
Keep a track of your spending on a weekly basis
Very few things are such an eye-opener as seeing figures in your account go down as you spend. Checking your balance on a weekly basis will help you realise how much money you still need to pay off (utilities and bills), how much you have spent on stuff and how much you’ve got left; so next time you want to buy something on impulse, you will think about it twice.
The good thing is that your Arro Early Access account makes managing your money and keeping track of your spending a breeze, helping you stay on track to reach your long-term goals. If you don’t have one yet, then what are you waiting for? Sign up to get yours here.