Sunday, June 12, 2011

9 Ways to Avoid Impulsive Buying

I’ve been eying that iPad 2 since it was launched few months back. I often go to the Apple Store to check out prices and new apps. I log on to to compare the price difference from buying it here in the Philippines versus buying it in the US. It’s really amazing how apple can catch my attention on their gadgets. Unfortunately I have a strict budget to follow and I know I cannot afford to lose any of my money right now because of a major change.

As of today I’m keeping my budget and staying on track avoiding the distraction on the gadget. I’ll share to you some of the steps I follow to avoid impulsive buying. I hope they can help you out as well.

1. Stay away from the Mall

This step is hard to follow because my route going to the office passes by a mall. Fortunately the apple store is out of my way. But for instance your addiction is not on the gadget but on the fashion items on stack please do follow this first step.

2. Have a solid budget

I mentioned earlier that what forbids me from buying iPad 2 is my strict budget. It doesn’t allow me to give money away that easily hence making it a lot difficult for me to splurge on other things.

3. Give it at least 6 months

A big purchase is a big purchase and it can change my financial life easily if I got caught red handed. I’m giving it at least 6 months. If I still want it after 6 months then I’ll really consider buying.

4. Make a budget for splurge

A budget for splurge is a nice way to make things balance. And I have just one rule on this budget. “If my budget cannot buy it at once, about face.”

5. Compare Prices

I went to different dealers to compare prices. Some offer discounts when the item is paid in cash while some don’t. It still pays to look around because a 5% discount is a 5% discount.

6. Stop

When I log on my computer the three most typed words are facebook, yahoo mail and amazon. I had to restrict myself from typing the last word if I want to keep my budget in tact. I’m still lucky because I don’t have a credit line that I could have used on purchasing some stuff.

7. Use cash

Credit cards are not necessarily evil but if I want to stay on budget I should use cash in all of my purchases. But if I want to help my boyfriend in accumulating reward points, I’ll give my cash and he’ll use the card. He’ll pay it off the next morning.

8. Consider second hand

I consider buying second hand gadget from a friend instead of buying it on new condition. A 6 months old iPad is not different with the new one. But the price difference is big.

9. Breath

I take a breather. Instead of buying things instantly, I go to the bookstore and read the synopsis of a good book on saving and investing. This reminds me that I should save more and I should have more discipline when it comes to handling my hard-earned money.

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