April 16, 2008

Impulse Buying

Posted in debt, obstacles at 4:29 am by kimsan23

“Today I bought a 5MP Polaroid Camera at 1 peso shy of 5k…

To be perfectly honest, this is one of the worst bad habits I have in my book. I am terrible when it comes to controlling myself. It’s so effortless really; the way I could just whip out my credit card and buy something just because my credit limit allows me to do so. What kills me is really what happens next when I realize that I had bought something without alloting resources or planning for it. I’ve learned through time that I can only impulse-buy if I really do have the money for it — on hand. Most of the time though it gets very tempting to buy something you know you want at the very moment you see it. But you see, if you’re on a budget, do you really want to jeopardize your spending plan? What can you do when you feel the strong urge to buy something? Here’s my two cents worth.

If it’s something you can actually afford but don’t need, leave it at the display window and walk around the area a bit. See if you can shake off that intense “I-want-you” feeling. If it rubs off within an hour, you’re fine. If not, then I guess we all know what’s next.

However, if you actually are falling in love with an uber-expensive item — think.  Why not give yourself time to really assess whether you really want it or not. If you do not have the money for it but you want it, make it a planned expense.  For that, you’ll need to allot money in intervals. Give yourself a chance to save for it first. Once you have the money, decide if you still want it or not. If you want it, get it since it has just become part of your actual budget. If you don’t, then you end up with a hefty amount for savings!

Always pay with money you have. If you wanna use your credit card, try to see if you can get a no-interest scheme payment plan or pay in full when the card bill comes. This will help eliminate finance charges, not  mention give you rewards points on your card (only if your card has a gimmick like that).

One way I discipline myself is to first fill out my financial template.  Second, put money in separate labelled envelopes that match the item entries in my finance template, And lastly, see if I can allot any extra money I might have to a fund for the item that I want.

Always think well before deciding to buy something you want. Ask yourself some guide questions:

1. Do you need it?
2. What is it’s benefit to you?
3. How long will the benefit last?
4. What other needs can you fill with the amount you’d like to spend?

Of course, the hardest is part is answering your own questions where you will, most of the time see, that whatever you want to buy has great potential of hurting your on-hand cash as well as your budget.

Give youself time to decide. You know what they say: “If it’s meant to be, it’s meant for me.”

…thank god it was a planned expense!”

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1 Comment »

  1. OMG said,

    Exaxctly. It involves lot of planning and budgetting.. Good job..


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