We’ve all been there- we pop out of the office at lunch and the lure of a new pair of shoes or CD proves too much and we come back to the office with a new purchase, or after a stressful day we hand over the plastic and are perked up by a new purchase.
But that feeling of pleasure is short lived, and once the bill for your credit card appearst or you check your account to be greeted with a massive overdraft and interest payments, you get that horrible sinking feeling, go shopping to make yourself feel better and the whole thing starts again.
In a recent study by VitalSmarts children were told they would have the opportunity to earn money and were asked how much of it they wanted to save. They were then put into what was described as an impulse rich environment, with bright posters advertising sweets which they were also able to sample.
The children were allowed to purchase sweets ‘on credit’, with the amount they spent deducted from the money they were going to earn in the future- to recreate the scenario of adults making payments on credit.
Before the study most children wanted to save around 87% of the money, but once they were confronted with the buying environment and the offers and samples that went with it, the average amount they were left to save was around 32%.
This echoes the situation many adults find themselves in, as they set a budget, which is then forgotten once they have consumables in front of them and are in the ‘buy,buy, buy’ environment that most shopping centres are.
To stop this impulsive buying in its tracks the best thing would be to avoid the shops altogether- but obviously this is completely impractical as there are things you do need. But when you are shopping employ a friend to act as your jimmy cricket and be your conscious when the buying impulse strikes. Make sure you choose wisely and make sure the friend knows your budget and knows why you have a budget.
Another good tip is to give yourself rewards now and then. If you go cold turkey on personal treats then you’re likely to become irritated and go for a big all out splurge, whereas if you allow yourself a small treat now and then as part of your planned budget then your much more likely to stick to your saving goal.
Learn more about a debt advice agency. Stop by The Debt Advisor’s site where you can get online help with debt