14 Smart Ways to Curb Spending on Impulse
An Acceler8now.com Investing Education Resource August, 2007 Back to Page: 1 2
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Continued from Page 1
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Delay Buying
Oh, I do this a lot and it really works wonders. Put that item on a waiting list! At each point, I have seemingly important things I intend to buy that have stayed for up to a year on my list. Inflation, right? Well, I never get to buying most, because technology keeps changing, other things shift and soon that overpowering desire simply wanes. Take this ultra-slim Samsung phone. The first time I saw that phone, was I blown apart! I wanted it desperately, but using my system, it first got into my list. Does the phone still look good, sure. Still anxious for it, unfortunately no. Time has gotten it off my radar and focused interest on other things. Money saved.
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Beat the 'Latest' Mentality
A lot of impulsive buying goes with chasing after the latest models. It's great to have something new and smashy, but you don't have to be the first with every new product model. We all know how artificial the changes are most times, an art the Japanese have perfected with cars. Think back to all the models of Honda Civic or Toyota Corrola or Camry, in quick succession, in the last few years. Nice cars all, but each is good enough to keep using. Do you have to 'launch' each new one? Don't fall for the 'new model' bait, because you have other things to do with money.
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Prevention, Still Better than Cure
Naturally, you know yourself and your weaknesses. Don't go testing your will, if you know you will fail. You have a craze for new clothing, whether you need them or not. So why go to Women's Exquisite Wears when you know you can't resist picking a bagful of clothes, even when you don't have a budget for it? Steer clear of where the temptation to get into avoidable spending awaits you. You know the spots, don't you?
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That Credit Trap
No credit cards here yet (okay, some banks have started), so that saves us a bit. But there are all the mobile marketers who bring things to the office, house or elsewhere. Often, because they personally know you, they lure you into buying by allowing you keep and pay later. You will pay all the same, so deferring it for two weeks doesn't really save you. Stay with our rule, don't buy off your budget. And to achieve this, you must begin to learn how to say 'no', politely if you like. It's not sentiment. You've got to manage your finances or you will still end in some embarrassment. Don't buy to please, buy because of a planned need. If you doubt that it can be done, come and try me.
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Cash Overload Will Tempt You
If you are working to curb impulsive spending, then spare yourself of that excessive cash load you carry on you. Apart from the risk of robbery, it makes you trigger-happy, only that the weapon this time is your money. If you are carrying enough cash, you need iron-will to resist spending it and that strength of will-power is not often there. After all, why are you carrying the money, if not to use it. Your best bet is to hold the least amount you can safely keep. First, there are things it can't cover, even if you desperately feel like having them. Besides, you will still want some money in your pocket, so you can't burn this off. If you are worrying about emergencies, keep an ATM card somewhere you can reach it when you must. But don't let the ATM become your cash, encouraging you to spend at will and to replenish. If you can't control it, dump it away from you and only go for it if you really need it.
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Watch the Traffic Hawker
If you are in Lagos, then this guy is part of your life, because you must spend long stretches in the traffic. He's quite useful sometimes too. But then, he thrusts a lot of things at you that you never planned for. It could get enticing, but should you just buy because it's handy? Stay with your budget when temptation comes. Besides, if you haven't mastered the art (or is it science?) of bargaining with those guys you could pay thrice the price or even more.
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Create Major Spending Project
Whether man or woman, there is nobody who is not happy to accomplish some projects, for example, completing a house, opening a business-house or something else. The problem is that if you don't focus on something, you leave a vacuum which is exploited by weaknesses like the spending urge. You can help curb it by getting into a project that creates excitement for you and which eventually will bring a lot of value. If you really get spending on a project that not only counts for much but is captivating to think of, you probably will think twice if the occasion to throw money away arises. Because you know that sum will advance your project and bring you closer to the realisation of a big dream, no wasteful spending can easily absorb it.
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Get Creative
What we have here are, after all, suggestions. All, in the end, is in you, because you know yourself better. Just get working seriously on your goal of curbing your spending impulse, by being realistic to know your shortcomings and making a resolve to work your way out of a bad habit. Get thinking of things that can work for you and help you realise your goals. Use more of your cheque book for payments to avoid handling much cash? Limit the number of outings to shopping places and other locations where you tend to burn money? Send your staff with a list of things to buy and stay off? You probably will come up with more ideas that will work for you. The key thing: just do it!
No doubt, unbridled impulsive spending - buying on the fly - will drain your resources and deny you the benefit of applying those resources to purposes that meet your priority needs and those that build your financial capacity. It is worse when you don't really command a huge income power, meaning that the opportunity cost of any misplaced spending is enormous. If you identify a personal problem with this, it's time to get working, because you can't easily be a champion with a lot of baggage. Take a stand today for prudence and begin to apply smart measures that can help you overcome wastefulness.
Copyright © 2007. Acceler8now.com. All rights reserved.
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