| How many of these strike a chord?: | | | | basic clothing. Dinner out at 4 star restaurants and |
| 1. Are the words "You spent HOW MUCH!?!" a familiar | | | | new designer clothes do not fall under the needs |
| part of your dinner conversation? | | | | category. They are wants. Wants are anything that, |
| 2. Do you call your credit card company each month | | | | while you won't die if you don't have them, they |
| and accuse them of sending you someone else's - | | | | may help make your life happier or more |
| much bigger - bill? | | | | comfortable. Once you really start to be honest with |
| 3. Does your closet look more like a department | | | | yourself about what is a need vs. what is a want, |
| store than a storage space for a single person's | | | | making purchasing decisions will get easier. |
| wardrobe? | | | | 2 - Set a budget. Figure out how much disposable |
| 4. Did you stand in line to buy an iPhone, Wii, x-box | | | | income you have to spend each day and only carry |
| or any other recently upgraded technology gadget | | | | that much. If what you want to buy costs more |
| even though you have the last 3 versions - plus all | | | | than what you're carrying with you, you can't buy it. |
| the add-ons - at home collecting dust? | | | | This means leave your credit/debit cards at home. |
| 5. Did you buy that "must-have" entire new outfit | | | | There is no reason for you to carry a card with you |
| even though you only went into the store for a pair | | | | unless you are making a pre-planned purchase that |
| of socks? | | | | you've saved up for. Instead, put them into a drawer |
| If you chuckled, then blushed, then hung your head a | | | | and leave them there. If that's still too easy to |
| bit at any of the above, odds are good you have a | | | | access, put them into a bowl of water and throw it |
| spending problem. | | | | in the freezer. They'll have to defrost before you'll be |
| While a spending problem is not a good thing to have | | | | able to use them for anything. |
| at any time, in these financial times it's even worse. | | | | 3 - Shop from a list and don't deviate from that list. |
| If you can't control your spending it probably means | | | | It sounds simple but you'd be surprised at how many |
| that you're not in control of the other areas of your | | | | people don't use a list when they're shopping. This |
| financial life including savings, retirement, paying off | | | | means that not only do they waste a ton of time |
| debt, etc. which can have drastic and far reaching | | | | wandering a store looking around they also waste a |
| consequences. | | | | lot of money buying things they don't need. If, while |
| To add insult to injury, impulse spending can damage | | | | you're shopping, you see something you want, write |
| not only your finances but also your relationships. | | | | it down on the back of your list and add it to the list |
| Being in a relationship with someone who is | | | | of things you want to buy next time. Typically, when |
| consistently irresponsible can be tiresome and the | | | | next time rolls around that item no longer looks so |
| fact that money is a leading cause of divorce only | | | | interesting and you will end up passing. |
| proves the point that not being able to manage your | | | | 4 - Set goals for yourself and save for them. |
| money can have a negative impact on your romantic | | | | Delayed gratification sounds boring but really it's much |
| life. | | | | more satisfying. If you know that you've had to |
| Impulse spending is usually caused by a lack of | | | | save for weeks/months for something you are much |
| something else in your life. You may be bored, or | | | | more likely to truly enjoy that purchase. |
| unhappy, or avoiding making a decision about | | | | 5 - If you're in a relationship, make a mutual rule that |
| something and buying yourself a treat can be a great | | | | any unplanned purchase over $x has to be |
| diversion. Figuring out why you spend is as important | | | | pre-approved by all members of the family. This will |
| as learning how not to spend because unless you | | | | help to ensure that everyone is on the same page |
| solve the root problem, this will always be a challenge | | | | about spending and will help the financial |
| in your life. That said, this is a personal finance article, | | | | communication that is necessary for a healthy |
| not a psychology article so while I can't help you get | | | | relationship. |
| to the root of the problem, I can give you some tips | | | | 6 - Finally, if all those things don't help, keep this in |
| on how to get it under control. | | | | mind any time you have the urge to spend money: If |
| From the moment we wake up until the moment we | | | | you take the money you're about to spend and |
| go to bed we are hit with an endless barrage of | | | | instead invest it at an average of 10%/year for 30 |
| advertising telling us that we need newer, bigger, | | | | years you would have 10 times more than you're |
| better stuff in our life in order to be happy. | | | | spending. So, if you have the urge to buy a new |
| Eventually you need to learn how to tune those | | | | $250 phone even though your current phone works |
| messages out but until then, here are a few things | | | | just fine, ask yourself if that phone is worth $2500 |
| you can do to cut the impulse off at the knees. | | | | because in reality that is what it's going to cost you. |
| 1 - Learn to separate a need from a want. Basically, a | | | | And actually, if you put it on a credit card and don't |
| need is anything that, if you don't have it, you will die. | | | | pay it off immediately it will cost you even more. |
| These include: water, basic food, basic shelter and | | | | |