7 Ways to Avoid Splurging

Aug 13th, 2007 by David Murphy-Colonna | Scroll down for comments

Your bored and have nothing to do on Saturday afternoon. So you decide to go to the mall to “window shop”. Sounds harmless right?

As you walk through the mall, your friends want to to stop in at the “hat” store. While in the store, you see a “hat” you like. You try it on and it looks great. You don’t need the hat because you just bought one that looks just like it but in a different color 3 weeks ago. But this one looks so good, and “you have to have it.” Next thing you know your at the cash register with your credit card out and a bag with a new hat in it.

Now your down $30 and have a hat in the same design but different color than the one you bought 3 weeks before. Hey at least you look good.

I have been guilty of this many times. I’m sure we all have. Going somewhere with no intention at all of buying something, and then blowing money on an unnecessary item. I am not saying this is always a bad thing, but it definitely hurts your bottom line. Here are 7 ways you can become a more responsible shopper and less of a splurge shopper.

If you don’t plan on spending, don’t bring the money to do so.

Always try to keep money in your wallet in case of an emergency but, try not to carry around too much money with you at one time, it will definitely increase your spending habits. If you go to a store and you have enough money in your wallet to buy a potential splurge item, you are more apt to do so.

On the other hand, if you go to a store and you look in your wallet and moths come flying out, not only are you reminded that you didn’t come to shop, you would also have to go through the hassle of going to the ATM and coming back for the item, which by then would hopefully make you realize it probably isn’t worth it.

Make a list.

This sounds so basic, but when you plan on doing a lot of shopping such as grocery or clothes shopping for school, making a list will ensure you stay focused on only what you need, and help you cut down on the splurging. Remind yourself, “If it isn’t on the list, I can’t buy it.”

*Making lists and jotting things down is a good practice to get into not only when going shopping but this can also to help you prioritize and keep focused. Although we all think we have great self control sometimes we need a little help.

Practice the 10 second rule when purchasing.

I don’t know who made this rule up, but it works. Many financial blogs and websites tell their readers to use the “10 second rule” before any purchase. Before making any type of purchase, step back, count to 10, and just think rationally about the purchase. You may have “shopping fever” at the time, but this will calm it down. Think about if the purchase is necessary or not. The Simple Dollar.com goes into this rule in full detail on this rule.

Don’t put your self in situations where it is easy to spend.

Self-Explanatory. Instead of going to the mall when your bored, go for a run or enjoy some physical activity with your friends. Not only is this cheap and fun, it is also healthy

Think about what you could do with your money if you don’t make the purchase.

This is like looking at the opportunity-cost for money rather then time. Before you spend $72 on a new Lacoste polo shirt, think about what else you could do with that money, such as pay for your lunch for the week, buy gas, or save up for a larger necessary purchase. If you think about it, you could probably pay your phone bill with the amount of money you spend on some designer clothes.

Record your purchases for the month and review them

This is a great habit to get into. It will also help you form a monthly budget for yourself. You know your spending tendencies the best, and you are the only one who can control them.

So save your receipts for every purchase for a month, when the month is up go through them and see what you can do differently next month in order to lower your purchases. You can next take the next step and develop a budget for yourself and use this research in it.

Hold off on the purchase, and think about it for a day or two

This is a great habit to practice when buying clothes or electronics. If you really want to buy an item at the spur of a moment, go home, clear your mind, and think about the purchase. Is it really necessary? How will this affect my life in the future? This is an extension of the “10 second rule.”

*Also go home and look on the Internet for a better deal, or when sales are coming up, because sometimes you will be able to save much more if you wait it out.*

Take a look at Spending to Save - How to use Ebay to Save at Your Favorite Retailers. When you feel like making a purchase see if you can find any deals or coupons for that store online or in the newspaper, that way the splurge wont make a big dent in your pocket.

Bottom line, avoid splurging if you can. Of course splurging can be fun and we all do it at times, but it definitely hurts our wallets. This may sound cheap, but we are trying to teach you how to save some money here.

So take this as a warning. Following these 7 tips, you will make a difference not only in the way you spend and save money, but you will also think of better ways to use your money. So next time you are about to by that “hat” think about it twice, you might be better off.

David Murphy-Colonna posted this article under Saving Money on Monday, August 13th, 2007 at 3:39 pm You can follow any responses to this entry through the RSS 2.0 feed. You can leave a comment or trackback from your own site. View Technorati Linkbacks.