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Learning To Save Money

Learning To Save Money By Avoiding Impulsive Spending

Before learning to save money, you may need to determine if your spending habits are under control.

Do you handle your money well, or do you often buy items on impulse? Impulsive spending is one of the significant causes of credit card debt.

Are you an impulsive spender? Take the simple five-part quiz to find out.

What Are Your Spending Habits?

Answer truthfully:

1. Does your partner or a close friend ever remark that you spend too much money?

2. Do you have more items of clothing in your closet and drawers than you could ever need or possibly wear?

3. When your monthly credit card statement arrives, are you ever surprised at how much you spent compared to how much you "thought" you had spent?

4. Do you have to be among the first to own every new gadget, or if a friend gets a new gadget, do you have to get one too?

5. Do you buy items you had no idea you wanted until you saw them displayed in a store or promoted in a television info-commercial?

Did you answer "Yes" to any two of the above questions?

If so, it's likely that you are an "impulse spender" who indulges in so-called "retail therapy" (i.e., shopping to improve one's disposition or mood).

This is not a good character trait to have. It will prevent you from realizing your life's dreams. It will make it impossible to save for those things that really matter to you: a house of your own, your child's education, the vacation of a lifetime, or a comfortable retirement.

You need to set realistic financial goals and stop spending your hard-earned money on things that are unnecessary and unimportant in the long run.

Impulse spending will also place a strain on your relationships as well as your finances. Unbridled spending can sever friendships and lead to divorces. People eventually tire of a spendthrift, recognizing the shallowness of his or her character.

How To Overcome Impulsive Spending

The first step in overcoming the problem of impulsive spending and in learning to save money is separate your "needs" from your "wants." Advertisers are always trying to convince you that you need their product. The trick is to allow yourself a cooling-off period. Before buying anything unplanned, always wait and ask yourself, "Do I really NEED this item?"

For instance, before you go shopping, always make a detailed shopping list, and take only enough money to pay for what's on your list. Leave your credit cards safely at home.

While shopping, if you happen to spot something in the store that you would like to have, allow yourself a week to decide whether it's something you really need, or something you could do without. Often, once a week has passed, the item doesn't seem nearly as important. This is a simple solution, but it does work when strictly practiced.

By exercising a modicum of self-discipline and gaining control of your spending habits you will not only be learning to save money, but you will ultimately secure your financial future and protect your relationships.

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