Stop Impulse Spending
Check List! Now answer these questions truthfully:
1. ) Have you ever been told that you spend a lot of money?
2. ) Whenever you get your credit card statement, does it surprise you to realize how much you have actually spent?
3. ) Do you tend to get or have stuff more than you actually need?
4. ) Does it happen that you have almost all the new gadgets as soon as they are launched?
5. ) Do you have a tendency to purchase things on the spur of the moment after seeing them on display?
In case your answers for the above questions are yes, even for at least two questions then it can mean that you are an impulsive spender.
Impulse spending however good it might make you feel, will eventually affect your finances and other relationships adversely. You have to be able to differentiate between what you actually need from what you want.
Yes, needs and wants do differ, and significantly so. When you need something, it is something that you cannot do without and that it is imperative to have that thing in order to make things work for you. For example, having decent clothes is a need. Want, on the other hand is something that you crave or wish for, but if you don't get it its not going to impair your daily life activities. You can do without the things you want.
These days the advertisement industry will go to any extent to persuade buyers in to purchasing the things they are selling. You can try this simple technique to avoid squandering money. As soon as you wish to buy some new product just launched on the market, what you can do is just postpone the purchase for at least three days. Now, after three days if you still wish to have this product you can go and get it, else, you just saved your money.
There is nothing wrong with spending; it gives us joy. Still it is vital that you have things planned out properly. You have to plan your financial expenditure and that will go a great way in letting you stay solvent and happy.
And then you never know if someday you instantly need cash for an emergency. It never hurts to save.
Dr. Joshua Geralds is a successful Investment Specialist with over twenty years experience increasing the income of people world wide. For a limited time get his free Money Management to a Million Dollars e-course here: http://www.pipsalot.com