Impulsive spending can be costly; stop it now

Everybody has to plan their financial future; even the rich people worry about money, so be frugal with your money now and enjoy seeing it grow.

06:49 28 March 2014

There is a little known secret that rich people keep to themselves, “never spend money unless you absolutely have to”. If you think being frugal is being miserly then you are wrong, frugal habits involve being wise about how you spend your money.

 

1.Don’t carry credit cards on you – unless you have to

Credit cards make you feel like you can afford things that in reality you do not have the money for. It also becomes easy to buy things you might not even need because with a credit card you can. One of the best credit card habits is not to carry them with you at all. Carry cash and only then will you be able to spend what you can afford to. 

 

2.Realistic goal setting

You need to set financial goals for the short term and the long term so that when you do have extra cash to spend you know the best way to spend it so that you will advance your goals. If you break bad-spending habits, you might even get to a point where you are able to save for those things you thought you could never have.

 

3.Stop being an impulse buyer

Buy things only when you need them. There is no answer that is as worse as “I just had to have it” when someone asked you why you bought an expensive bag, scarf, or shoe you might never wear more than once. Teach yourself to look at price tags and to walk away from “sales” on items that are of no real use to you. If impulse buying is a real problem for you, get someone to go shopping with you.

 

The best thing you can do for yourself if you are an impulsive buyer is to draw up a budget and stick to it.