by Amela Piric

Created on: April 24, 2009   Last Updated: July 23, 2009

Look at impulse spending as a temptation that leads us into unnecessary and unplanned expenditures. Impulse spending has a potential to ruin our financial health. Pleasure we get from impulse spending is only temporary and it is gone as soon as we receive our first bills. If we rely on it often and on a consistent basis, it will eventually lead us into high levels of indebtedness.

Impulse spending encourages immediate gratification and as such it has the capacity to make us a slave of our impulsive urges. As such, impulse spending stands as an obstacle towards achieving our financial independence in life and realizing our long-term financial goals such as starting a home business or owning our home.

Below are some practical steps on how you can avoid impulse spending:

1. Understand that impulse spending is an addiction and avoid becoming its victim

Before you can start avoiding impulse sending, you first have to know why it is important for you to do that. Impulse spending can turn into an addiction if it is practiced consistently and not detected and controlled on time. Addiction to impulse spending is a vicious cycle that can become hard to control if it is not acknowledged and prevented on time. Thus, it is best if you can avoid becoming its victim.

2. Develop critical thinking skills

We live in a culture ruled by the principle of immediate gratification where patience and critical thinking skills fall in the background. We have become non-critical consumers of anything that is nicely packaged and presented to us. In order to combat impulsive spending urges that you face on every corner of our street through big advertisements, you should work at developing critical thinking skills and become a more conscious consumer. Impulse spending is all about regretting a purchase you made when it is already too late. Becoming a better informed and critical consumer of information and products will help you reduce your impulsive spending urges.

3. Stay away from credit cards and debt

Impulse spending usually relies on credit cards which can eventually lead us into unnecessary high levels of debt if we use them irresponsibly. Staying away from credit cards will help us become a more responsible and healthy consumer. If you want to avoid frustration, anxiety, and worry that usually come as a result of impulse spending, rely on cash instead.

4. Stick to a budget

One should buy only what one can afford and when one can afford to buy it. Buy only what you have previously thought through and planned for through your budget. Impulse spending is usually based on unplanned purchases and our wants. Thus, it is not based on our needs. What we need to do is clearly differentiate between our needs and our wants.

5. Think about what it is you are lacking in your life

When you feel an urge to spend money uncontrollably, think about what the real reasons are behind this urge. Many times people rely on impulsive spending in order to cover for their inner feelings of anxiety, low self-confidence, and loneliness. Is it love or security that you may be lacking in your life? Whatever it is, impulse spending will give you a temporary feeling of happiness but it won't make you happy long-term nor solve your underlying problems.

Learn more about this author, Amela Piric.
Click here to send this author comments or questions.