If you want to invest in your future and grow your wealth, then you need to curb your impulse spending. Here, I explain how to do it.
Firstly, you need to answer the following questions truthfully:
1) Does your spouse or partner complain that you spend too much money?
2) Are you surprised each month when your credit card bill arrives by how much you spent?
3) Do you have more shoes and clothes in your wardrobe than you could ever possibly wear?
4) Do you own every new gadget before it has time to collect dust on a retailer’s shelf?
5) Do you buy things you didn’t know you wanted until you saw them on display in a store?
If you answered “yes” to any two of the above questions, then you are an impulse spender, who probably indulges in retail therapy too much.
Impulse spending is not a good thing. It will prevent you from saving for the important things like a house, a new car, a holiday or retirement.
To avoid impulse spending, you should set some financial goals and resist spending money on items that really don’t matter in the long run.
Impulse spending will not only put a strain on your finances, but your relationships as well. To overcome the problem, the first thing to do is learn to separate your needs from your wants.
Advertisers blitz us with their products 24/7. The trick is to give yourself a cooling-off period before you buy anything that you have not planned for.
When you go shopping, make a list and take only enough cash to pay for what you have planned to buy. Leave your credit cards at home.
If you see something you think you really need, give yourself two weeks to decide if it is really something you need, or something you can easily do without. By following this simple steps, you will mend your financial fences and you’ll be able to start building some serious wealth.