How to Avoid Impulse Buying

At some point, we've all opened up our wallets, or checked our account balance online, and been surprised to find we have less money that we thought. We are certain that at the beginning of the weekend we had a thick stack of ten and twenty dollar bills, and now our cash flow has been reduced to a trickle of fives and ones. When we call to get an update on our checking account, we think someone must have stolen our check card -- where did all these five and ten dollar purchases come from? And a withdrawal in the amount of $87.50? What was that?

If you've ever experienced this confusion, you know it can be hard to remember where the money went. When we don't consciously spend it in the first place, it's no wonder we don't remember spending it at all. At the time, three or four dollars here and there doesn't seem like a lot, but over time it really add up. I remember watching an episode of the TV show "Big Spender", which features a financial guru helping folks clean up their money disasters. In this particular episode, a man who was tens of thousands of dollars in debt was record shopping at a thrift store. His reasoning was that the records were only a dollar, so he could afford him. The host of the show was trying to help him to see that all these small items he didn't need were what was causing his overwhelming debt. Impulse buying can lead to long-term financial problems.

To break free from the impulse buying trap, first take a good look at how you are spending your money. Many financial planners recommend writing down all purchases, from big-ticket items to that daily cup of coffee. This not only cuts out those mystery purchases that show up on your bank statement, but make all those small impulse buys a reality. When you see the number written down in ink, it's much more difficult to push it to the back of your mind.

After a few weeks to a month of writing down all your purchases, make a budget. Check to see if you are spending more than you are earning, and relying on credit cards for unneccessary spending. Financial advisor Suze Orman recommends a flexible budget: if you set aside, say, $100 a month for eating out, and $40 for video games, you can move your dining money to your game fund if a new release come out that you just have to have. Just don't move funds from your utilities budget! Budgeting should be about control, not deprivation.

Next, (and this is actually the first step in Suze's Nine Steps to Financial Freedom), think about why you are doing so much impulse shopping. She recommends writing down incidents from your childhood that shaped the way you feel about money now. For example, if you grew up struggling financially, you might impulse buy now out of a sense of "deserving" those luxuries. She teaches that if you truly love and respect your money (after all, you worked hard for it), you will spend it wisely. Think of attitudes you may have developed that make your view your money as something that can be wasted.

For some people, overspending is like overeating. We aren't hungry, but the food fills some emotional gap in our lives. The same can be true with shopping. For some women, especially, buying a new outfit gives us a temporary rush. We feel good for a while, but this feeling wears off when we realize we are sinking fast in a pool of debt. That in turn makes us more depressed, which makes us shop even more. Impulse buying can be a vicious cycle.

The good news is, you can begin to curb impulse buying right at this moment. Before you go to the mall or grocery store, grab a pen and paper to write down what you spend. You can even make a copy of the receipts. Bring a little notepad with you everywhere, so you don't neglect to document that afternoon smoothie. If you find your impulse shopping is out of control, bring a chaperone with you to the store. These changes might seem difficult at first, but in the long run you will save money, and be happier.