Aug 12, 2019
How to Get a Handle on Impulse Spending
Think before buying, and consider using cash over credit.
Spending is a huge part of everyday life, whether it’s paying your bills, purchasing groceries, or a big night out. But there’s another kind of spending to think about—the spending you do when you don’t really know that you’re doing it.
Tactics and considerations:
- Kill your “zombie spending” habits. We’re talking about all those purchases you don’t think about, that keep you mindlessly spending. These purchases could include the daily coffee on the way to work, the one-click ordering on Amazon, or all those Seamless meals. It all adds up.
- Consider the cash diet. That means putting away your credit cards and only spending with cash. Studies have shown that people spend less when they use cash.
- Check your credit card and bank statements for recurring charges, like gym memberships, meal plan subscriptions, publications, streaming services, even things you didn’t know you’d signed up for, but are being charged for anyway. Cancel what you don’t use, and maybe even what you do use.
- Rein in your impulse spending. These purchases are similar to your morning coffee habit, but can really put a dent in your budget. We’re talking about those new sneakers, jewelry, or household items you might buy on the spot. This may come as a shock, but consumers spend a whopping $450 a month impulsively, according to a recent study.
Try waiting a day before hitting the buy button or make a significant purchase in a store. A 24-hour “cool down” period could help you make buying less of an emotional decision. It could also give you some time to research cheaper options elsewhere.
What is impulse spending?
An unplanned decision to buy something on the spot.
Find out more:
7 Smart Spending Tips From Shopping Expert Trae Bodge
Trae Bodge tells you how to get the most bang for your buck, from doing your research to making a shopping budget, and never settling for the list price.
What's the Cash Diet? Paying with Cash Can Help You Save Money
Throw away your credit cards, people! We’ll show you how to make a budget, and give yourself a cash allowance for the things you want and need. We’ll also tell you why it’s important to track every penny of spending.
How to Manage Credit Card Spending
Maybe that credit card spending habit is harder to kick than you imagined. Here are some tips for squashing your spending on plastic, plus an explainer on how credit card interest rates really work. How they really work might surprise you!
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