FinanceCents.com

We’ve all done it before - haven’t we? We walk into the department store wanting to replace a old wallet, and end up with a new watch, 3 pairs of new shoes, 3 tops, 1 pair of jeans, 2 earrings, and 5 pairs of panties. (referring to the ladies here, of course). The men arn’t that much better off, so stop smirking.

In fact, it just happened to me last week! I walked into a watch shop with a $500 maximum budget wanting to buy a watch, and i walked out with TWO watches, simply because they were having a sale and the total cost was less than $500. I could have saved $300 dollars instead of just $50 (I spent $450).

Impulse buying is EVIL!

• You end up buying things you don’t really need
• You end up buying more than what you use
• You end up paying premium prices because you don’t buy at bargain prices
• You end up having less to spend on the more important stuff
• It’s just a plain waste of money

So how can we prevent ourselves from wasting money?

1. Use a shopping list for groceries or everyday items. This way, you only buy what you really need. IF you see something you really want, make a note to put it on your shopping list for your next trip.
2. Have a budget and keep to it. This works very well together with Point #1 above. 
3. Go window shopping without carrying cash or credit cards. You won’t end up buying anything on impulse, and you’ll have time to think about what you really want to purchase on your next trip (see #1 above).
4. Wait a day (or a week, or a month). NCN has a great tip on how he waits a day per $100 he wants to spend.
5. Stay home. This is easily explained as “see no evil” ;)
6. Save spare cash. Move it out of your current account into a savings account elsewhere to prevent yourself from spending it.
7. Use debit cards instead of credit cards. That way, you never spend above what you have - this works well for many people without financial discipline.
8. Get help from others. Many couples make agreements with each other to consult each other when purchasing items above a certain amount. That way, they keep each other in check. It’s easy to see when someone else is overspending than to see when we are overspending.
9. Shop only during the Great Singapore Sale. Or, other big sales as well. But you will need to keep this shopping spree under control by keeping to a budget!
10. Keep track of what you are spending. This means how much, on what, and when. When you realize how much you’re really spending, it’s easier to keep it in check.

Other stuff you’ll be interested in

• Don’t let credit cards rob you!
• The Great Recession Sale this weekend!
• Your brand new panties are the devil
• Here’s how that Ah Beng became richer than you
• Manage your money like a sushi chef