What could you do with an extra $5,000? A recent survey by Slickdeals found that Americans impulsively spend an average of $450 per month. That adds up to an extra $5,400 per year. Just imagine, if that money was invested instead the future value calculation is more than $71,000 after 10 years! (Thanks to @thesmarterwallet on Instagram for running the numbers)
1.) Write Down Your Budget
First thing, you need a written budget. If you don't already have one, create one using my simple budget planner. You can use this youtube video as a guide to help you set up your budget planner to work for you. But you have to stick to it! It requires some discipline and work but you can do it! Watch this video, to help you stay on track.
2.) Give Yourself Permission To Spend
After you have your written budget, you need to prioritize your spending categories so you can still have fun! Give yourself a line item in the budget with your name on it. Whether it's a $5 cup of coffee or a $100 spa trip, just make sure its a reasonable amount and manageable for your budget.
3.) Make A Plan
Determine what you want to buy and how much you’ll spend before you even start shopping. With a plan in place, you’ll be less likely to give into overspending. Impulse spending happens when we don't have a plan, so have a shopping list whether you are shopping in a Target or online with Amazon.
4.) Take only the amount of cash you’ll need.
Figure out how much money you need for the items you want and only take that amount. You could even go a step further and leave your debit card at home so you don’t tempt yourself to buy more with plastic. According to a study on spending behavior, people who shop with a card tend to spend more than they would with cash.
5.) Keep Your Goals In Mind
Dave Ramsey says "Children do what feels good, adults devise a plan and follow it." The excitement of impulse shopping never lasts so control your urges. The peace of mind that you receive from your new disciplined mindset is priceless.
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