5 Steps To Curtail Impulse Spending

Setting up a household budget and sticking to it can be challenging. Impulse shopping doesn’t make it any easier. About 42% of consumers say they are worsening their financial situation by doing things like making impulse purchases and carrying more debt, according to the recent Real Financial Progress-Index by BMO Harris Bank. Half of the surveyed respondents said they often spend more money than they know they should, up from 45% in the bank’s April survey.

Keep goal-oriented money separate

Then, keep goal-oriented money where you’re less likely to use it. “If you want to cut down on impulse buys, put more of your money in the accounts where you’re saving for goals, and keep less of it readily available to spend,” Meinhart said.



Think about the reason for your impulse purchase

It also may be useful to think about why you keep making impulse buys. “Often the purchase is made not because you have a strong desire for the item itself but to satisfy an emotional need or relieve stress,” said Kelly, of Switchback Financial.



What are your values?
Writing down your values and making sure your purchases align with them can also help, Kelly said. Of course, at the moment, all those promises you made to yourself may be forgotten. If you are online and see something you’re sure you simply must have, take a deep breath. “Leave an item in your online shopping cart for at least 24 hours,” said CFP Jessica Goedtel, founder of Pavilion Financial Planning in Allentown, Pennsylvania. “Let the impulse cool off, and more than likely you’ll have forgotten about it by the next day,” she said.



Unsubscribe unnecessary marketing emails

Goedtel also recommends unsubscribing from marketing emails. “You won’t be tempted by that 50% off sale if you don’t know about it,” she said. Additionally, you can make it harder for yourself to make unplanned purchases. “Don’t save your credit cards in the apps on your phone,” said Meinhart, of Parsec Financial. “And make purchases with a debit card linked to a checking account you have earmarked for your monthly spending.”


















SOURCE: CNBC