Impulse purchase is a bane of any investor. It not only disturbs the budget but also derails investment plans. Impulse purchase can inflict anyone but it has similar impact on everyone. Some people are more prone to impulse buying when they shop alone while others buckle under peer pressure and end up purchasing things they do not need while out with their friends. Whatever the circumstances are, it is essential to control this habit in order to ensure financial viability.
Use Cash:
Use of credit card is one of the biggest reasons behind impulse buying. Various studies have proved that people evaluate their purchase decisions more stringently if they have to pay through cash. So next time, when you are out for shopping or with friends, leave your credit card back home and pay for everything with cash. This will help you to keep things at right track and your impulse buying habit under check.
Prepare Budget:
Budget is a great way to keep your spending on track. For convenience, you can break down your monthly budget into fortnightly or even weekly budgets. This will help you in knowing the amount of money you can spend. Once you cross that limit, you can no longer make any purchases. Budgets put psychological pressure on you and force you to abide by them. You can also reward yourself, if you remain under budget. This incentive system works great for the morales.
Pick your Hobbies Wisely:
Hobbies are the lifeline of your routine. Hobbies can help a person feel more invigorated. However, some hobbies can cost you a fortune. If you are fond of collecting expensive watches or shoes, then evaluate your hobbies. Try to divert your energies towards more productive and less expensive hobbies such as gardening and nature watching. Expensive habits promote impulse purchases but creative hobbies such as sports keeps you entertained without much investment.
Don’t Fall for Sales:
Sales are other occasion which can tear your budget apart. However, most of the sales eventually end up being more expensive as people use this excuse to buy stuff they do not even need. If you feel tempted by the sales, then make sure you only buy the goods you actually need and are going to use. If you think you are not actually going to use the product then do not buy and steer clear of the sales.
Learn to Wait:
Another way to control your purchase urges is to impose a curfew time period. You can go for a 7 days or 15 days curfew, which means that instead of buying something then and there, you will wait till the end of the curfew period. If at the end of the curfew period, you still think that the product is worth buying and you will use it, then make the purchase, otherwise drop the idea. It is highly likely that you will lose the desire to own that product in 15 days.
Avoid Retail Therapy:
Always keep in mind that mindless shopping is not a solution to your problems. In fact, it is a big problem in itself. Some people use their woes as an excuse to go on a shopping spree. If you are unhappy about something, then try to reach the root cause of the problem. Hang out with your friends to divert your attention, but do not go all out and start shopping for the things you do not need. Always keep in mind, your problems will only increase when you get a hefty credit card bill.
List is your Friend:
If you are going out to purchase the things you need to buy, then do not leave the house without making a list first. Once in the mall, stick to that list and do not make any purchases which are not on the list. You may make a note of the things that appealed to you and then put them through curfew test. This way, you do not have to forego all the pleasures but at the very same time you will be making sensible purchases.
Avoid Impulsive Friends:
Peer pressure is a big reason behind impulse purchases. If you have any friends whose company makes you go on binge shopping then try to avoid them while going out for shopping. Also if you are prone to impulsive purchases while you are shopping alone, then enlist the help of a responsible friend or relative. Such company may keep you from making purchases for the things you do not need. The first step towards solving a problem is the recognition of the problem.
Binge purchases are a bad habit which may be reformed with patience and proper course of action. You can use reward system to keep yourself motivated.
