Breaking the Spending Habit

Posted by admin in Debt on 10 8th, 2009 | no responses

Ever wanted to curb your spending tendencies?  Here are some ways to control your purchase-happy attitude.

1.  Use cash.

Overspending comes too easily when you’re using credit cards. Solution: leave your credit cards behind and shop using cash or your debit card.

2.  Have long-term goals.

Stop yourself from spending too much on small items like gourmet coffee or snacks.  Set a goal and nurture it by thinking about it every time you feel tempted to spend your hard-earned money on trivial stuff.  Create a goal fund where you can put the money you would have spent on your trivialities.

3. Distinguish your needs and wants.

Do this every time you are about to make a purchase. Be truthful about how such acquisition will affect your life or your finances, and then decide if it’s really worth the amount on the tag.

4. Carry a shopping list.

List down all the things that you need to get from a store then stick to your list.  This trick effectively reduces temptation to spend more.

5. Allow yourself a little space.

Check your budget and see if you’ve got extra money you can indulge in without feeling guilty.  Just remind yourself that when the indulgent money is depleted, the spending ends.

6.  Have a wait-and-see policy

If you’re craving on the latest trends or gadgets, try to sleep  on it and see if you still want it tomorrow.  Give yourself time to deliberate on the purchase you’re planning to make.  If you can’t sleep on it, and it even figures in your dreams, then it’s probably best to buy it than lose sleep over it.

7. Bring along a shopping conscience.

Ask a friend or family to come shop with you, someone who can reason with you whenever you are helplessly overwhelmed by your shopping tendencies.

8.  Do away with the shopping cart.

The bigger the cart, the greater the impulse for you to fill it.   Don’t fall into this brilliant strategy.  Get a cart only when you’ve got lots to buy.  If not, the trusty basket will be good enough.  Less temptation this way.

9.   Ask someone else to shop for you.

Get your shopping list ready and have someone you trust shop for you. By staying at home and not at arms-length from possible tempting goodies at the store, it is impossible to go beyond your budget.

10. Take a last-minute look.

Are all the goods inside your basket everything that you need?  There may be items that you should return back to the shelves.  Get rid of your non-essentials before heading to the counter.  Or at least make a mental note to get them in your next shopping spree.

These tips will help to curb your spending and help you to avoid the pitfalls of debt. Bankruptcy and IVA’s are increasing due to the large amounts of personal debt in the country.

More help with IVAs

BBC.co.uk

IVAAdvisoryCentre.co.uk