4 Practical Ways to Get Rid of Impulse Spending
Practically, to build wealth, it is much easier to start by managing your expenses than to increase your income…
Because you have complete control over how your money is spent and saved, it is totally up to you to determine what to spend it on and how much to set aside as savings.
Your income, on the other hand, only rises when your wage increases or when you establish new revenue sources which may take longer to achieve.
You would agree that you have limited influence over raising the amount of money that comes in, which is why limiting the outflow of your money is the first step in managing your finances.
You must be able to determine if you are a healthy spender or not!
If there is a foe to money management, it is impulse spending.
Impulse spending is by far what fuels your inability to save better, and the reason why you won’t be able to meet your financial goals in the near future.
For clarification, Impulse spending is unplanned & unnecessary spending on material items that you had no prior intention to purchase, till you came across them while scrolling aimlessly on the web, when you go grocery shopping, or when your friend sends a screenshot of the latest items they got.
Don’t get me wrong, I ain’t advising you to start living like a pauper just to be financially disciplined, but your aim should be to avoid unnecessary purchases (expensive or not) while you’re still trying to get your financial footing.
These minor expenses soon take up a chunk of your income if not prevented.
Impulse spending is what also triggers the ‘Diderot Effect’ — which is the tendency for one purchase to lead to another, for instance, buying a new dress makes you crave a bag, and then accessories to go with, on and on till you realize you can’t satisfy all of your desire, and you are left with less money.
As much as we can do without spending, it is advisable to spend within your budget. By not getting rid of impulse spending, it becomes difficult to live below your means.
If you are serious about improving your finances, you need to be deliberate about breaking this bad money habit and replacing it with a new one — Thoughtful spending.
To avoid these pitfalls and do more with your hard-earned money this year, here are five practical ways to get rid of impulse spending in 2023.
Budgeting for your ‘wants’: The best way to create a practical budget is to make provision for your wants — clothes, bags, accessories, cosmetics, etc. Set aside an amount to cover some of your desires regularly. It’s much easier when you save money and also spend some.
Save first before spending: The fun part about this is you have limited funds available after locking away part of your income in savings. If you aren’t the type that easily resorts to credit, this strategy should work for you.
Besides, you can’t spend what you don’t have, and this way the impulse to buy more can’t be acted upon.
Take a while before making that ‘impulse’ purchase: For a start, take a day or two to fully decide if that item you are tempted to buy is essential or not.
By withholding the impulse to immediately satisfy your desire, there is a high tendency you might not proceed with the purchase after reasonably examining your pocket.
Think of alternatives: Another helpful option would be to think of a cost-effective way to satisfy that craving, either by patronizing a budget-friendly vendor or deferring the purchase for a later period after you must have made provision for it in your budget.
Remembering that you can satisfy significant cravings, by delaying material gratifications now, for in the future, might just be the final push you need to overcome impulse spending.
Building wealth relies heaving on the accumulated leftovers after you spend what you take in. What you haven’t realized is that you can build wealth without a high income, but have no chance of building wealth without a high savings rate.
And the key to doing this is by cutting down on your spending.
Let me know in the comment below which of these strategies you would most likely adopt.
This write-up serves informational purposes only. It should not be considered explicit financial or legal advice. Not all information will be accurate. Before making any serious financial decisions, consult a professional.
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