How to Reduce Impulse Buying
Your credit card bill comes in the mail and you are bowled over by what you have spent this month. Much of the damage is the result of having bought a lot on impulse. Impulse buying is one of the first things you need to control, either when you are uncertain about your job, your finances have become tight, or you are trying to save money for retirement. At the end of the day, you must be responsible for your actions.
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Instructions
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Separate what you need from what you want. If you see something that you truly think you need, delay buying it for two weeks while you think about whether you need it or actually only want it. By providing yourself a cooling off period, chances are you will finally decide that the purchase is unnecessary.
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Resist the allure of the low monthly payment. These days, you can buy almost anything with no money down and a ridiculously low monthly payment. For example, you can buy an automobile at many places where they offer 84 month financing with no money due when you drive it off the lot. That's 7 years and longer than the projected use of many cars. Besides that, the interest rate you will pay is usually higher because of the longer term.
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When you go grocery shopping, make a list, leave your credit card at home, and take just enough cash to buy what is on your list. Also, do not shop when you are hungry, because you will be certain to buy more than you actually need. A grocery store depends on your impulse buying to make a profit because a majority of those purchases have higher-than-average profit margins.
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Focus on the money you will keep by not purchasing the product. Let's say that you have wanted a convertible automobile all your life, even though the car you now have is comfortable and will provide many more years of service. Rather than giving in to the urge of buying a $30,000 or $40,000 automobile, think about how much more secure you will feel by having the cash, instead. Besides, that new car will begin depreciating the moment you drive off the lot.
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