by Makoy

Created on: May 22, 2009

Normally at times, impulsive spending would seem so hard to resist. It is the result of wanting instant gratification. Little and cheaper things like candy, gums, mints, and chocolates which are displayed at counters and check out aisles would normally trigger impulsive buyers to purchase but sometimes it goes on extreme cases like the acquisition of "big ticket" items such as automobiles, appliances, and even real estate.

Generally, impulsive spending would disrupt the normal decision making by customers and replace it with the mindset of instant self gratification. It appeals more to the emotional side rather than the logical side of the customer who purchases items which are not really functional or necessary in the long run. Several workable techniques has been formulated to overcome impulsive spending. Here are some of them.

1.) Recognize the problem. Generally, this results to budget shorts and cuts. If in the end the budget would run short, there must be something wrong along the way. Little things like cigarettes and candies can go a long way if left unattended and can actually accumulate to a good sum late on. Checking on one's spending urge is the key.

2.) Create a budget and plan. Making a shopping list and time of the day to shop is a sure way to stop impulsive spending provided that it will be followed thoroughly. Having a list would let one know what's really necessary and what's not. Creating a list would help a lot in controlling spending.

3.) Use cash instead of credit cards. It's simple, when you run out of cash you can no longer spend. Credit cards are convenient but in the long run they can be dangerous financially especially for people who can't seem to control their spending urge. Using cash instead of credit card also appeals to one's emotions. It's harder to see a cash disappear than swipe a credit card.

4.) Delay instant gratification. This will work very well. Instead of purchasing something unplanned or which appeals to one's emotion, give it at least 3-4 days to think about it whether it's really valuable or not. 80% of the times, the urge would just fade away and on what seems to be an important thing would prove not at all.

5.) Avoid social shopping areas. Normally malls and other "social" areas are where people would flock and shop. It's quite rare to see people shop in these areas alone and statistics show that friends or companions would influence one's spending habits highly. Normally, what one would eventually purchase is not what he/she really wants but what his/her friends wants.

6.) Keep track of one's budget. Keeping a small notebook and keeping note and updated about one's expenditures is one sure way of lessening one's spending impulse. Tally each and every spending no matter how small and it's in this way where people would realize how much they spend on things that really doesn't matter at all.

Spending is a bad thing once it goes overboard. Though it feels good to spend and acquire things that appeal to the emotions, in the long run they all do more harm than good financially. With discipline, proper planning, and keeping a close eye on day to day spendings can cut one's impulsive spending.. drastically.

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