How did you get yourself into this?
There is a host of ways that we get ourselves over indebted. Sometimes we cannot be fully responsible when we get laid off or retrenched. However then we need to plan effectively with our severance packages for the time ahead until we get new employment.
Another big problem we struggle with and one of the leading causes of debt is impulse buying, poor planning and lack of restraint. Maybe it was a glossy magazine in the checkout line or a pair of shoes being offered at a price you “couldn’t pass up”. These small, irrelevant items that find their way into your shopping cart can add up quickly. Although impulse buying has dealt a fatal blow to many a household budget, the good news is yours doesn’t have to be next. Arming yourself with a few tips before you go out shopping can ensure you resist the urge to make these trivial (and costly) purchases for good. Impulse buying happens when you get caught up in the hype of a situation and you buy something without thinking much about it. Impulse items may be new products, samples or well-established products at unexpected low prices.
Situations that play on shopper’s impulsiveness include: items on sale tables that advertise 'huge bargains' or '10% off all items' or the enticement of announcements that something is half price for the next 5 minutes. Impulse buying makes you spend money on items you may not really need or want. To avoid impulse buying you need to ask yourself if you really need the item or just want it.
Here are 10 tips to help avoid impulse buying:
1. Track spending trends.
At the beginning of the month, start a log. Write down everything you spend for a full month. At the end of that month, review your trends to see how much you spent impulsively. The results may startle you enough to kick start your anti-impulse buying campaign.
2. Make a list.
Know what you need before shopping. This cuts down on time spent browsing, which is most often when the impulse to buy strikes.
3. Use coupons.
If you do need to purchase an item, seek out a coupon first. These days, you can find a coupon for almost any product, from any retailer.
4. Learn to separate “needs” from “wants”.
Make every attempt to justify your purchases based on a need instead of a want. Just because you want that leather jacket you saw on sale at the mall doesn’t mean you need it – especially with four others hanging in your closet.
5. Shop alone.
Friends, spouses and children can all be a hindrance on a budget-conscious shopper‘s mission. The urge to splurge gets stronger around certain influences – such as shopaholic friends and crying children.
6. Eat before going shopping.
It sounds silly, but a lot of impulse shopping happens when people grocery shop on an empty stomach. Every thing is tempting, making shoppers more likely to buy pricier things than they would normally buy to satisfy a food craving.
7. Avoid temptation.
Some impulse buyers have a particular weakness. It might be cosmetics, clothing, DVDs or even books. Avoid these items. Don’t even shop at the same stores. Change your shopping routine completely to get out of this rut.
8. Develop a mantra.
Remind yourself that every impulsive purchase you resist is worth X amount of Rand toward a vacation or other special treat, X more Rand’s your saving or X more Rand in debt.
9. Shop sales smartly.
Go to sales at the end of a season and keep those items for next season. Shop around and don’t just buy at the closes shop you are at.
10. Sleep on it.
If you find something that you think you truly cannot live without – sleep on it. Return to the store the next day. If the urge is still there and still as strong, you might consider making the purchase. If not, recite your mantra from #8 and give yourself a pat on the back.
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