We all love a good bargain.
But when we struggle to resist one, it can have lasting consequences for our finances.
All too often we treat shopping as a hobby.
Or, worse still, a form of therapy to cheer us up when we feel depressed.
According to a study by the Bank of Montreal, 59% of respondents admitted to impulsive shopping with the urge to cheer themselves up the most commonly cited cause.
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The more unplanned purchases we make, the harder it is to budget and save.
As such, we can grow over-reliant on various forms of credit.
This, in turn, can get us even deeper into the debt hole.
On average, we Canadians make $3,720 a year in impulse purchases.
That number needs to be reduced to $0 if you expect to live debt-free.
But, of course, the whole shopping experience is precision engineered to get us to impulse buy.
Here are some ways you can resist the urge…
Leave your cards at home
Spending money with a swipe of a card makes it much harder to be disciplined.
Try leaving credit and debit cards can stay at home when you go out, and switch to an all-cash diet.
It makes it much easier to keep track of your spending and realize when you’ve spent too much.
If you keep throwing away money on impulse-treats like take out coffee or candy bars, maybe you should consider leaving your cash at home, too.
Don’t let yourself be pressured
Sales professionals are trained to separate you from your hard-earned money.
Don’t let them pressure you into buying anything right on the spot.
Even if it’s subject to a “limited time only sale”.
When in doubt, walk away and give yourself 24 hours to think it over.
Make shopping lists
One of the simplest, but most effective, ways to curb impulse spending.
Know exactly what you’re heading out to buy before you leave your home.
The less prepared you are, the more prone you’ll be to impulse spending.
Realize you’ll never be able to shop yourself happy
Buying new things to make yourself feel better gives you a fleeting high.
But after a few days that high is replaced by feelings of guilt and buyer’s remorse.
It’s a hard truth to learn, but money really can’t buy happiness.
You’ll achieve the catharsis you crave if you get to the bottom of why you’re feeling down, and stop using shopping as a pick-me-up.
Focus the things you need instead of the things you want.
The satisfaction that comes with mastering your budget and improving your financial health far outweighs the fleeting thrill of impulse spending.
Don’t get suckered by store cards
Sales assistants are really enthusiastic about store cards.
But that’s because they earn a commission from them, not because they’re good for you.
Sure, you may get an initial discount on your purchases.
However, your store card will make you more likely to buy more than you intended.
Store cards often come with extremely high interest rates, so you will end up spending more for the same stuff.
Don’t be afraid to ask for help and advice
We’re here to help you improve your financial habits and get easy access to the best debt relief options to suit you.
If impulse spending has made your debts spiral out of control, we can recommend the right solutions to regain your disposable income, allow you to save and live debt-free.
Call us today on (877)879-4770, and we’ll arrange a risk-free, zero-obligation and completely confidential callback.
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Personal Bankruptcy in Canada
What Debts are Erased in Bankruptcy?
