Many people cite overspending, impulse buying, and buying unnecessary items as their biggest financial struggles. And yet, we continue making the same mistake over and over.
And with holidays here with us, it's no secret that many will fall into the same trap. According to a study by the Bankrate, about 65% of American adults say they feel pressured to overspend. Many more admit that holiday expenses affect their finances adversely.
Financial experts warn that unless you beat this monster, you will not achieve financial freedom even if you have good intentions about saving more money, making more money, and getting out of debt.
This year, we don't want you to worsen your financial situation. So here are five ways to beat impulse buying and overspending.
Don't Put Yourself In Harms Way
Many of us know we tend to buy nonessential items. However, we put ourselves in tempting situations. For instance, if you spend time window-shopping and visiting malls, you're more likely to buy something.
So, find alternative ways to spend your free time. Perhaps take a walk in the park, go to the library, and use residential routes.
And if you must go to the mall, make a list of what you need and stay focused on it. Even better, search for these items online and have them delivered to your doorstep.
Don't Fall For Marketing Gimmicks
Businesses are professional spending seducers. Their main objective is to drive sales. And during this festive season, many of them have upped their games. If you're not careful, you could end up buying items you don't need.
The surest way to beat marketing gimmicks to by staying mindful. Before buying an item on offer, ask yourself if you need it now, would you buy it if it were not on offer, and would you need it after the holiday.
It's not uncommon to see people, especially parents buying things they already have. When you have many items, it can be difficult to tell what you already have.
Therefore, assess what is in your cabinets and garage before spending money on any item. Apart from helping you save money, taking inventory will make you realize you're wealthy. This will probably motivate you to stop buying unnecessary stuff.
Use Technology To Remain Accountable
When losing weight, many people use apps to track their progress. The technology can even help them avoid certain foods like oversized chocolate cakes. This helps them remain focused on their goal- weight loss.
You, too, can use technology to watch your holiday spending. Many budgeting apps keep you in check when you're about to buy items. These digital solutions will help you remain focused on saving money by avoiding impulse buying.
Put Emotions Aside, Use Numbers
When you let emotions cloud your spending, you're more likely to make mistakes. For example, many people end up spending extra income earned on unnecessary gifts and treats because they think they're motivating themselves.
And once emotional justifications take over, you become pervasive and less focused on your budget. So don't get wrapped up in how you're feeling.
Instead, use concrete figures to justify any purchases. Take a closer look at your budget, and determine how your holiday spending will impact you going forward.
Keep Your Financial Goals In Mind
The festive season will come to an end. So as you spend money buying gifts and celebrating, don't forget to keep your short-term, medium-term, and long-term financial goals in mind. This will help you avoid impulse buying.
Before parting with any amount, ask yourself how it will affect your goals. This will help you keep your eyes focused on the big picture. Good luck!