Impulse buying can kill your savings. Stop now! Here's how
Have you ever found yourself standing at the cash counter and paying for an item that you didn't actually plan on buying? We have all been there at some point or the other and even regretted making that impulse purchase. This kind of buying sabotages your savings and overall budget, which is why it is important to tackle it head-on. Here's how.
Think before you buy
Before you make your purchase, think carefully about whether you really need it or not. Avoid dropping it in your cart immediately and delay picking it up for some time. Prepare a mental checklist and ask yourself whether the item will be a worthy buy or not. Think about how it might affect your budget and then make the final decision.
Pay in cash instead of card
According to studies, people tend to spend less when they use cash as compared to those who use credit cards. Psychologically speaking, it's harder to let go of hard cash. If you have limited cash in your purse, you will think twice before making a random purchase. Another study showed that people using cards spend 50% more at fast-food restaurants than those using cash.
Include discretionary spendings in your budget
Plan a budget and then try sticking to that when you head out shopping. We know it's difficult to stick to strict budgets so we recommend you save a little money for buying some fun stuff each month to avoid impulse buying in the long run. Including discretionary spending in your budget will let you know your budget limits without making you feel depressed.
Keep a tab on online shopping
Online shopping is probably the biggest trap for your pocket. Studies show that e-commerce sites account for 40% of impulse shopping. While doing online shopping, we recommend you search for the specific item you need instead of searching by category. According to research, shoppers searching by category are thrice more likely to get tempted and buy something random and additional.
Limit your shopping outings
The more you go shopping, the more likely it is that you will end up making an impulse purchase. So limit your outings as much as possible. The likelihood of picking up unnecessary stuff is directly related to how many times you shop. Shop for groceries once per week. Also, don't shop when you are sad and move your mind toward other things.
