In addition to the external pressure we face from marketing, our own feelings and habits can contribute to excessive spending. Here are six suggestions to help you keep spending under control.
Resist impulse buying. Do you enjoy the excitement of shopping and finding a bargain? If so, you may tend to purchase on impulse. To resist, slow down and think realistically about the long-term consequences of buying, owning, and maintaining what you are planning to buy. Stop and remember past impulse purchases that you later regretted. Give yourself a “cooldown” period before making your final decision.
Avoid shopping to alter your mood. Shopping can temporarily lift you out of a bad mood. But when negative feelings return, you may feel even stronger pressure to seek relief through spending. Instead of shopping to improve your mood, seek out supportive friends or engage in some physical activity, such as taking a walk.
Do not shop for recreation. Lavish shopping malls have turned shopping into entertainment. Although you may visit a mall or browse the Internet simply for enjoyment, much of what you see is designed to stimulate your desire to buy. Shop only when you have a specific purchase in mind, and stick to your plan.
Choose your associations carefully. The lifestyle and conversation of your friends greatly influence your desires. If you are overspending to keep pace with your friends, then choose friends who place less emphasis on money and material things.
Use credit cards wisely. Credit cards make it easy for you to buy while ignoring the consequences. Try to pay credit card balances in full each month. Know your credit card’s interest rates and fees, and compare credit offers to find the most affordable cards. Be wary of premium cards that have higher borrowing costs and offer benefits that you do not need. Instead of purchasing on credit, save for larger purchases and pay cash.
Know your financial status. It is easier to spend excessively if you are not sure about your financial status. Keep up-to-date records, and know your total financial situation. Create a realistic monthly spending plan based on your income and past expenses. Track your spending, and compare it with your plan. Ask a trusted friend for help in understanding financial matters that are unfamiliar to you.