One Minute Money Tip – Control Spending by Avoiding Impulse Purchases

One Minute Money Tips are designed to be quick easy reading that can save you lots of money!

control spendingDid you know that 80% of impulse buying is because the item is “on sale”?  Let's be honest, sales are designed to get you to spend money plain and simple.  Does 20% off sound like a good deal if I would tell you that the item was marked up 200%  Designer jeans don't cost any more to make yet can cost up to 650% more than a common brand of jeans.

So why do we buy things we didn't intend to buy in the first place?  The short answer is we have difficulty controlling impulse buying and this can lead to serious financial problems down the road. By recognizing what factors influence your spending decisions, you can start to control spending.

What are impulse buying triggers?  Well that can be different for each of us.  Shopping for groceries when you are hungry is a big no no yet most of us do this on a regular basis.  A recent study by Alison Jing Xu of the University of Minnesota shows that not only are you more likely to buy more food when you are hungry but you are also more likely to buy other things as well.

The best way to determine what triggers your overspending is to analyze your purchases over a period of time.  You may discover that you make most of your unplanned purchases on the weekends when you are out with your friends at the mall.  You may need to get a little creative and suggest your friends meet you for a free concert at the park next weekend instead of meeting at the mall.  Leaving credit cards at home and only bringing cash is another way to help reign in overspending.

Readers: When was the last time you bought something on impulse?

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