Is your weakness impulse spending?
Answer these questions truthfully:
1.) Does your spouse or partner complain that you spend too much money?
2.) Are you surprised each month when your credit card bill arrives and you see how much more you charged than you thought you had?
3.) Do you have more shoes and clothes in your closet than you could ever possibly wear?
4.) Do you own every new gadget before it has time to collect dust on a retailer’s shelf?
5.) Do you buy things you didn’t know you wanted until you saw them on display in a store?
6.) Do you often wonder what happened to the money you had in your purse or wallet?
If you answered YES to any two of the above questions, chances are you’re an impulse spender and indulge yourself in retail therapy.
THE DANGERS OF IMPULSE SPENDING
Impulse spending is not a good thing. It will prevent you from saving for the important long term goals you really want, like a house, a new car, a vacation, or retirement.
YOUR FINANCIAL GOALS
Once you define your adult financial goals, you will have to set a budget and stick to it. Impulse spending is an enemy of any budget. It is pointless to sacrifice your long term goals for a bunch of short term ‘hits’. Your retail therapy doesn’t cure anything, you just end up spending money on items that really don’t matter in the overall scheme of things.
THE RISKS OF IMPULSE SPENDING
Impulse spending will not only put a strain on your finances, but your relationships as well. Arguments over money is touted as the number one reason for divorce in this country.
Continued in: Avoid Impulse Spending Part II
