There’s a good chance that we can all admit to being an impulsive buyer at some point throughout our lives. It could be anything from purchasing a new item of clothing which you didn’t really need to taking a stroll around a car showroom, only to sign on the dotted line a few hours later and before you know it, you own a new vehicle. If done on a rare occasion and you have the money to be able to complete purchases like these, then there isn’t much of a problem.
The past year has been difficult for everyone, with many people struggling financially due to the pandemic. Most people can agree that if anything, recent months have shown just how important it is to be wise with your money and not spend it on unnecessary items.
If you’re an impulsive buyer but understand that you need to reign in your spendings, then Galahad & Co have shared some tips to promote mindful spending. Their blog post includes the questions you should ask yourself before spending money and we wanted to share some of them with you.
Is the purchase needed?
Before spending money, you should ask yourself whether the item you are looking at is a ‘need’ or a ‘want’. For example, an electrical appliance within your house may have broken – this could be a washing machine or fridge. These are appliances which every household needs, so replacing them is a ‘need’. When it comes to items such as clothing, more often than not this is a ‘want’, as many people will have a good selection of clothes which they have only worn a number of times. It’s at this point you need to ask yourself if it’s worth spending the money or not.
Can I afford to make the purchase?
There are a number of different payment methods at our disposal these days, including credit cards, loans and the option to pay in installments. Although these options have many positives and can help people financially, they also have their downsides.
Being able to pay on the likes of credit cards can often appeal to many people as you don’t have to make a payment there and then. It’s very easy to get carried away with this, as it can often come as a shock when it’s time to pay off your credit cards. Unless you have the money in your account to make the purchase straight away, then it’s important to ask yourself whether you can actually afford to make the purchase.
Can I find the item cheaper elsewhere?
If you need to purchase an item then it’s worth shopping around to begin with and not just paying the first price you see. Searching online and browsing different websites can often help you save money on the item you need and it’s also worth looking to see if you can find any discount codes. A number of companies are also willing to match quotes, so if you do find a cheaper price, then take proof to the place you originally found your item and ask them to meet the cheapest price you have found. Even if you don’t end up saving much, every bit of money you save can go towards another essential purchase or your savings fund.
It’s important to be more mindful before spending money, as it’s very easy to let your impulsive habits get out of control. Hopefully the points we have shared will help you and we would love to hear if you have any of your own. Share your suggestions on social, using #MindfulSpending.