8 Ways to Stop Impulse Shopping

Raise your hand if you’ve gone into Target just to buy a pack of toilet paper and left with a full basket of stuff.

Hey, we’ve all been there. It’s fine to make light of it all (I mean it does make for some great Target run memes, amiright?) but when it comes time to look at your bank account, it’s probably not going to be fun.

Impulse shopping happens to the best of people, but it can lead to blowing your budget, missing financial goals, and even going into debt. Worst of all, you may regret purchases, leading to those pesky emotions known as shame and guilt.

Before you go hiding under a rock, vowing never to come out again — please don’t, the world needs your awesomeness — keep reading to find out what you can do to curb impulse shopping.

Forgive Yourself

We all make mistakes. It’s not helpful to dwell on them and beat ourselves up on the past.

The more negative self-talk you engage in, the more you’re going to shop impulsively again. If you feel like you can’t escape the wrath of the Target run, you’ll end up blindly going into the store and tossing unnecessary items into your cart.

If you end up overspending, take some time to tell yourself it was a mistake and that you can become better with your money. One step at a time.

Notice Your Urges

… Shopping urges that is.

When you feel the need to shop — and it’s not because you ran out of toilet paper — take note. You can even go as far as marking it down in your note-taking app or a journal. The idea is to draw attention to it so that you can stop and think about why you feel the need to shop.

In most cases, the reasons are emotional. Maybe you’re going through a stressful time and want to do some retail therapy. Or you’re feeling a bit insecure at your new job and want to impress your coworkers. It could even be as simple as you celebrating your birthday, leading you to buy things you weren’t planning on purchasing.

 

Avoid Temptation

  • Here are some simple tricks to avoid the urge to buy things in store or online you don’t need: Block websites of your favorite retailers
  • If you need to purchase something, see if they have a pickup service, so you’re less tempted to be swayed by shiny displays
  • Don’t go to the mall
  • Give yourself a time limit when you do need to buy something, like 5 days to see if you actually want it
  • Take a different route to work if there are any stores you’ll see that may lead you to impulsively shop
  • Have hours where you’re not allowed to browse online (like past midnight, when you might not be thinking straight…)

Stick to a List

A lot of people end up making impulse purchase because they don’t have a plan. Of course, sticking to a list isn’t going to be 100 percent but at least it can help deter you by having something you can reference.

Sticking to a list will require you do some advance planning on your part. For example, if you go grocery shopping, check your pantry to see what you items you need. Or if you’re buying new clothes, write down the types of styles, color and clothing item before you go try stuff on.

Try a 30-Day Challenge

Gamifying your finances can be a fun way to work towards a better financial future. Call it a “shopping ban,” “spending fast,” or something more fun. Whatever you do, see if you can challenge yourself to stop impulse purchases for 30 days.

If you do, make sure you get as specific as possible. Maybe you’ll only purchase necessities, but nothing outside of groceries, bills, etc.. Or you want to stop clothes shopping for the next 30 days. Consider making some rules or guidelines on what you can and can’t purchase during the challenge.

When the challenge is over, see how you feel. What did you learn about yourself??

Have an Accountability Partner

Sometimes having an outside force can help you to stick to your goals. If you have a friend who you can chat all things money with and trust, challenge each other to stop impulse purchases.

This plan will have a higher chance of success if you make specific goals. Think about keeping each other accountable throughout a 30-day challenge (as mentioned above) or even having a weekly chat to talk about your thoughts around spending money.

The win-win here is that you can work towards a better financial future and help a friend out at the same time!

Bring Cash

You can’t spend money you don’t have, right? If you need to head into a store to make a purchase, bring only the cash you need and that’s it. That way you’re not tempted to buy anymore because you won’t be able to purchase it.

If you hate the thought of carrying around cash, consider using a prepaid debit or credit card so you can still limit the amount you spend.

Understand Your Why

Sounds super cheesy, but you can’t maintain a habit without understanding why you’re doing it in the first place. Sure, it’s a good idea to stop impulse shopping, but why is it important to you specifically? Do you want to save more money so you can replace your old laptop? Or do you have a bunch of credit card debt you want gone by the end of the month?

Giving a reason for changing your behavior will help keep you motivated during the tough times. And when you get through to the other side, you’ll be thankful you took the time to understand the why behind your finances.

This article was originally published at HiCharlie.com

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What Entrepreneurs Can Teach Us About Getting Out of Debt

Credit card debt surpassed $1 trillion in 2017, according to a report by the Federal Reserve. Getting out of this kind of debt can be challenging, but there is one group that can help show you a way out; entrepreneurs. They understand that debt involves having more liabilities than assets according to Forbes. In general terms, debt can be defined as owing more than you own. Owing something to someone else can be beneficial to your productivity, prosperity and value creation. When you cannot use debt for these benefits, then debt becomes a burden not an opportunity.

Learning to negotiate your way out of debt

When even the smartest entrepreneurs get into debt because a certain product did not sell well or because of a downturn, they often find ways to negotiate better rates and monthly payments with their lenders or creditors. Creditors do not refuse to negotiate because if the business fails, the creditors will not get their money. Similarly, your creditors want you to continue paying your debts because if you stop paying, it may force them to litigate.

Most creditors prefer to receive smaller amounts rather than to receive nothing at all. This process of negotiation may be brought before a third neutral party called an arbitrator to resolve any debt repayment dispute. This is often done to avoid spending time and money going to court to resolve the dispute. During time period of debt repayment after the debt negotiation process, your cash flow may stabilize.

Cash flow can be irregular

An illusion of invincibility may envelope you when cash inflows start exceeding outflows, but that quickly dissipate when irregular cash flow unexpectedly sets in. Some people turn to more credit cards when this happens, but credit cards may only make you dig yourself deeper into debt.Entrepreneurs ensure that they do not sell anything at a loss when they are experiencing more cash inflows than outflows. Another way entrepreneurs keep the cash flow regular is by offering no discounts and adding more value by creating bundles of products or services. So maintain your former budget, but do not add any more expenses. You will also need to prioritize your debt.

Tackle loans with large interest rates first

Entrepreneurs prioritize debts that affect their business relationships and those with large interest rates and penalties before other loans.  Penalties include having to lose an asset which you placed as collateral for a loan from a lender. So you can start repaying the loan that has either your house or your car as collateral because losing those properties can plunge you deeper into debt.

Debts can affect your relationships if you borrowed the money from relatives, friends or co-workers or when the debt is putting a strain on your marriage. Failing to pay the debt on time can actually end these relationships making you more vulnerable the next time you get into debt. For entrepreneurs, a supplier or vendor may refuse to deliver certain products to a business because of a debt that wasn’t paid.

Generally, you need to have a debt repayment plan, which involves drawing up a budget and sticking to it with the discipline of an entrepreneur. The changes you make may be hard on you and your family but that sacrifice will lead to a more secure future.

Chrissy Helders

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How to Save Money Each Month While Paying Off Debt

You have oodles of debt that you want gone. But you also have other important financial goals, like saving money, that need your attention. These competing priorities can make you feel like you’re trapped in a chicken or the egg conundrum. If you pay down your credit card debt, you’ll have more wiggle room in your budget and can save that extra cash. But, if you save more money, you won’t have to whip out your credit card next time an unplanned expense pops up. So do you pay off debt or save? The short answer is: porque no los dos?

Here’s your plan of attack to slay debt and pad your bank account:

Divide and Conquer

To work on both goals simultaneously, you’ll have to split your available resources between them. But, you need a clear plan to ensure that you allocate your dollars in the most effective way.

To get started, prioritize your debts and savings goals, keeping these things in mind:

  • High-interest debt will sink you. If you only make the minimum payments on your credit cards, you’ll be in the hole for years and pay potentially thousands extra in interest. Get rid of this debt first.
  • Lower interest debt isn’t as urgent. While you definitely want to pay off all of your obligations, “good” debt like student loans and your mortgage do less damage to your financial health.
  • Paying extra on installment loans doesn’t help your budget now. If you sock extra cash at your mortgage or student loans, you’ll reduce the total time you’re paying on them. But — it doesn’t change your required monthly payment amount.
  • An emergency fund will save you in a pinch. A cash reserve will keep you from going further in the hole when something breaks or you lose your job.
  • Start saving for time-sensitive goals ASAP. The holidays, your sister’s destination wedding, and your car registration renewal are all known events. Squirrel away a little bit here and there in the months leading up, and you’ll pay for them in cash with ease.
  • Don’t ignore retirement. It may seem like a million years away, but delaying saving for retirement will have long term negative effects. You’ll miss out on the compounding interest that actually works in your favor. If you can afford it, contribute at least enough to your retirement account to get your employer’s full match.

Choose the Right Mix

Once you’ve got your priorities in order, you need to divvy up your funds in a way that makes the most sense for you. For example, from your discretionary income, you could put 6% into retirement, 50% toward your credit card debt, and 44% toward your savings goals. As you pay off debt and your goals are completed or change, be sure to adjust your mix accordingly.

Remember: While there are some good guiding rules of thumb, how you manage your money is up to you. Personal finance is personal!

Find the Dollars

To make faster progress toward your financial goals, try freeing up more of your existing resources, increasing your cash flow, or both. Here are some steps you can take today:

  • Review your spending. Is there anything you can scale back on or nix?
  • Negotiate your bills. You may be able to get a lower rate on things like car insurance or cell phone service just by calling your provider.
  • Buy smarter. It doesn’t matter if you’re getting groceriesclothing, or shopping online, there are countless ways to get what you need and come in under budget.
  • Earn more dough. Consider picking up extra shifts at work, getting a second job, taking on freelance clients, or selling some of your unwanted stuff.

Remember: While it’s tempting, be sure to use your budget wins and side income for your debt pay off and savings goals, not for brunch and a new pair of shoes.

Final Thoughts

It can be overwhelming to juggle multiple, seemingly-competing financial goals. But if you proactively map out what you need your money to do, you can strike a balance that allows you to live your best life.

This article was originally published at HiCharlie.com

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