Are you an impulsive spender? Well, here are some tips on how you can curb your overspending and improve your financial wellbeing.
An impulsive spender is someone who does things suddenly and without careful thought. If this describes you, ask yourself the following:
- What effect did buying that item have on my wallet, bank account or credit card?
- Did I have to sacrifice something else to make way for this unplanned spend?
- Was it worth it? If so, what difference did it make to my life?
Now, think about the thing that you are tempted to buy next:
- Why do I want it?
- How does it make me feel? How will I feel about it tomorrow, or in a month’s time?
- Does it fit into my financial plan?
- Is there something else I could do, with the resources I have now, that would give me a similar sense of joy or satisfaction?
A deliberate plan, with an end goal of achieving financial freedom, can provide a framework for making decisions.
- Have a Spending Plan
Review it monthly (preferably before payday).
- Consider where you shop
In the store, at the mall, online or a local supplier.
- Resist temptation
Limit the retail apps that you download to your mobile device.
- Manage your shopping time.
Plan where you need to go to get what is on your list.
If you are shopping online, shop intentionally, in a space that is free from distraction.
If you are buying a high-ticket item, set time aside to surf the internet or visit stores to hunt down good deals. If you have made a rash decision, you could write it off as an experience that will prevent you from making the same mistake again. Or maybe you return the goods and get a refund.
If you want to know more about how to improve your financial wellbeing, talk to a financial coach at the NMG SmartAssist Programme.