DEVELOPING EFFECTIVE SPENDING HABITS

Resource: http://debthelp.blogspot.com/

Have you ever had the experience of going into a store to buy $6 worth of milk and bread, and you came out with $60 worth of items you really didn’t need? While in the store, you certainly felt they were either necessary or perhaps were on sale at a price too hard to resist. This is an example of Impulse Spending, and it is uncommon that such spending actually fits into our established budgets. Debt Reduction Services Inc. has some ideas for "resisting" the impulse to spend beyond our needs:

1. Create a weekly menu and make a corresponding shopping list prior to heading to the grocery store. Place an asterisk next to necessities, allowing for simple prioritization of items while shopping.
2. Take with you only the cash amount you have provided for in your budget. Leave your credit and debit card(s) at home. Keep a running total as you place items in your shopping cart (don’t forget sales tax, if applicable). When you reach the amount you have in cash, you can either check out or reevaluate your need for the items in your cart.
3. Plan to shop for groceries at times when the store is not crowded. Avoiding crowds helps to avoid stressful shopping. When we're stressed, we tend to justify additional purchases, so consider mornings instead of after work or Saturday afternoons.
4. Don't shop for groceries near mealtime or at other times when you're hungry. Expensive, prepared meals become more tempting the hungrier we are.
5. Ask yourself, “Do I really need this?”

There are other behaviors besides Impulse Shopping that often lead to overspending. They include:

1. Convenience Shopping – You say things like, “It’s on my way!” or “I don’t have time to shop around for the best deal.”
2. Entitlement Shopping – You think something like, “I deserve this! I’ve had a hard day! It will make me feel better!”
3. Hobby or Sale Shopping – You find it difficult to pass up yard sales without stopping to browse, or you automatically assume shopping will be the main activity when going out with your best friend.

If you can identify with one or more of these behaviors, make it your goal to become a “Disciplined Shopper,” one who plans their spending within an established budget and sticks to it. It’s not always easy, but in the end it will be well worth your effort.

Resource: http://debthelp.blogspot.com/