Breaking the Spending Habits(Article)

You are at the local Macy's and you've just found a delicious Nine West half trench coat, off white and made from 100% wool. It's absolutely stunning and the first thought that runs through your mind is that you have to have it.

You're not alone. Many people across the country probably have the same thought too. It doesn't necessarily have to be for a wool coat. It could be a mammoth 60' flat panel HDTV, a pair of diamond earrings, a green silk scarf, the newest and greatest video game or something as pedestrian as a blender. There is a euphoric feeling when we are able to buy something shiny and new. It's a high and then that high becomes a habit. And, just like any addict trying to come clean, you too will have find ways to break the habits and rid yourself of the high. Here are a few to start with:

Take Cash on Shopping Excursions
Whether it's the grocery store or the department store, having cash only forces you to spend only what you have. If you know you have to go shopping or thinking about going shopping, stop by the ATM the day before to get your cash out. Then, on shopping day, leave your credit cards and your debit card at home.

Set Short Term and Long Terms Goals
A short term goal like, 'I will spend only $40 on entertainment this week', can help build laser like focus on how you spend money in the short term. Setting long term goals like, 'I will have $5,000 in savings in three months' helps you work toward something. If you're a person that doesn't like the word 'saving', change the declaration to, 'I am investing $5,000 in the next three months towards my or my family's security.'

What You Need Is Not The Same As What You Want
Yes, those black leather three inch heels look fabulous or that 60' flat panel television would make Sunday football the best, but do you need them? Before buying anything, make sure to always ask if it's a need or a want. If you need them for an event and they are within your budget go ahead and purchase them. If you want them because they look nice, ask if there's something else that you want more and if this purchase will impact your life in a positive way. If you happen to make the purchase based on the want and then get buyer's remorse, return the item. Having the feeling of buyer's remorse is very clear indication that you made a purchase you know wasn't necessary. Also, before you make a purchase based on want, step back and go look at other things so that your inner dialogue can talk you out of the purchase. You can also give yourself a 24 hour period before deciding to make the purchase. If by that time you forgot about it, then it wasn't important.

My List, My Way!
Department stores and grocery stores want nothing more than your money. After all, they're not paying your utility bills, mortgage, and other expenses. Instead, they have mastered point-of-purchase (POP) sales, how to effectively position brands and how you navigate through the store. But, when you walk in with a list, you have something they don't control. Making a list of items that you need can gives you a clarity the stores wish you wouldn't have because you are now shopping for things you need. And, having control is a far better feeling than giving into what store want you to buy.

Look At What You're Buying
You're at the cashier station with all the items you want to buy. Before you commit to any of them, look at what you have and ask if there's anything there that was an impulse buy or a want. If there's a slight doubt that what you have isn't needed, don't take it. Your first instinct is always the best one. And, always consider this; you can come back for it later. What's more, it might be on sale!

Try some of these tips to help you start saving money and challenge yourself to come up with some of your own. After all, everything in life, even saving money, should be fun!