Impulse Buying: Keeping Impulse
Purchases Under Control
by Michelle Jones
When asked about saving money during the
holidays, one of my first tips is to avoid last minute shopping and
impulse buying. This is a
budget buster
we need to avoid all throughout the year!
* * *
We've probably all done it. The thought
process may go something like this... "Oh look, this is just what I
needed!" Or, "What a great sale!!" Then we may even dig the hole deeper
with "I know it's not on my list, I probably should wait... but it's here
now, I'm here now... maybe it's just meant to be!"
People have many ways of justifying impulse
purchases... "I've earned it, I need it, I deserve it, he/she would love
this gift - though I know it exceeds my budget," or even worse, "I just
want it and I want it now - I don't even care what it costs!" (Hopefully
that last one doesn't happen too often, and if it does, counseling may be
necessary.)
Now of course it's not just gifts, clothing
and household items that we may buy on impulse, oh no! Anything that can
be purchased with money can be bought on impulse. Even big ticket items
like cars and houses.
My husband and I are currently in the
process of looking for a new family van (our aging Ford now has over
160,000 miles and is definitely seeking retirement from our busy family
life), but unlike most families, we've been car shopping for over a year!
Every time another salesperson throws the pitch at us "What would it take
to get you into this van today," I give the same response, "A miracle,
because it's not going to happen!"
Not only are we taking our time to find the
right vehicle for our family and for our budget, but there is no way we'll
ever be pressured into a quick "impulse sale" again. Been there, done
that. During the early years of our marriage we were simply too soft
(i.e. stupid) to say "NO" and just walk away from things we thought we
really needed, or wanted.
And the fact is, every purchase we make can
affect our finances in some way, good or bad.
Learning to manage our finances better and
live more frugally can be a life-long journey, but it doesn't take long to
learn that impulse purchases can turn into disasters.
The problem is, many of us may do well when
it comes to the bigger purchases like buying a new car or a new home, but
what about those smaller everyday purchases - like a few extra sodas or
magazines at the grocery store each week?
It may not seem like much, but an extra
soda and magazine (or whatever you pick up that you could have done
without), can cost you an extra $10-$50 a week. That's at least $120 per
year, and could be as much as $600 or more. And 10 years of regular
impulse buying... could cost you $6,000.00!
So, if this is an area where you or someone
in your family have a problem, what can you do?
Here's a few ideas to help keep those
impulses under control!
-
Always keep an ongoing list of
things you need to buy on your next trip to any store. Review the list
before you leave, and remember to take it with you!
-
Make as few trips to the store as
possible each month, and avoid the malls entirely.
-
Give yourself a time limit for how
quick to get in and out of the store, along with a personal challenge to
not buy anything that's not on your list.
-
Apply my *48-hour Waiting Rule*
for all impulse purchases; if 48 hours after LEAVING the store, you
decide you...
-
Still need it...
-
Still want it...
-
Can't find is somewhere else for a
better price...
-
Can afford it...
-
And, you can't use a similar item at
home, or borrow one...
THEN go ahead and make the purchase.
Know what your budget is for miscellaneous items each month.
To help keep track of your impulse purchases...
-
Keep a list of anything extra you
purchase throughout the month on a small sheet of paper tucked away in
your wallet, or a small notepad in your purse.
Keep track of your receipts in an
envelope at home so you'll know how much you're spending as you go
through the month. When you've spent your budgeted amount for the
month - no more impulse (miscellaneous) purchases!
-
AND, if you've successfully passed by
that gorgeous new outfit (or that shiny new car that costs as much as a
house should!), and don't even need to apply the 48-Waiting Rule, reward
yourself for choosing a Better Life, with a luxurious bubble bath
tonight... you've earned it!
Michelle Jones, author
of Frugal Family Recipes and Dealing with Debt, is dedicated to helping
families save money and live a better life. She's also a frugal mom of 4
and the Publishing Editor of Living a Better Life: The Free Money-Saving
Tips Ezine. Please visit
www.BetterBudgeting.com to sign up for your free subscription!
Copyright © by Michelle Jones. All rights reserved.
Reprinted with permission.
