Does money burn a hole in your pocket? Does buyer’s remorse set in after
you have spent your money? If this sounds familiar, here’s how you can
you change your habit this year so you can buy the things you need now and
save for the things you need in the future.
Learn to recognise the drive that places you in
a difficult spending situation. Avoid these driving factors by having a
purpose for shopping, a time limit, and a written plan. Also, limit the number
of trips to the shop and never shop when hungry or depressed.
- Establish self-discipline.
How far money goes usually depends on how badly we want something. Once
spending has been brought under control, determine how much needs to be spent
each month in every area of your budget and trim accordingly.
A budget is a money plan. With it, you can organise and control your financial
resources, set and realise goals. Every purchase should be considered in light
of the established budget, buying any non-budgeted items on impulse should be
avoided, especially if those non-budgeted items will need to be purchased with
a credit card.
Be accountable to someone for a specific length of time for everything you
spend. If there is accountability, you will be more inclined to be cautious in
your spending habits — a look now, buy later attitude. Shop around
before buying and learn to say no. Keep a record of spending and purchases and
share these with your accountability partner.
Establish a want-to-buy list. Put all un-budgeted items on this list. Wait
seven days and find two additional prices for the same item, to be sure you
are getting a good buy. After a week, you will have thought about it and
probably will be getting the best buy on the item. Finally, you should have
only one item on the list at a time, so if you find new “wants”
during the week, you will have to decide between the two.
Resolving your finances often requires more than just self-determination.
Having a plan and someone to be accountable to are also essential to achieve
the desired change.