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It can be difficult to make a living and protect it. Impulse buying doesn’t make it easy.
According to a recent survey by BMO Harris Bank, about 42% of consumers say their financial situation is worsening due to impulse purchases and rising debt. Half of the respondents said they spend more money than they think, from 45% of the banks’ April survey.
Credit card debt is also increasing. According to the latest Federal Reserve data, between April 2020 (when it exceeded $ 1 trillion) and January 2021 (when it was $ 961 billion), consumers were worth about $ 130 billion. After reducing such debt, the outstanding amount returned to $ 998.4 billion. ..
Michael Kelly, a certified financial planner and founder of Switchback Financial in Madison, Connecticut, often finds the most difficult part of financial planning to be “budget management and cash flow surplus.”
“Impulse buying is one of the biggest obstacles,” Kelly said.
If you are among those who think such purchases are accumulating credit card debt or otherwise limiting you, how many you can take that may help the situation There is a step.
CFP Judson Meinhart, Financial Advisor and Financial Planning Manager for Parsec Financial in Winston Salem, North Carolina, can start by creating a goal-based budget.
“You may be striving for financial independence, or your goal may be more direct and revolve around becoming debt-free or taking a dream vacation. “Hmm,” said Minehart.
“Write them down, whatever they are,” he said. “you [far] If you write down your goals, you are more likely to act on them. “
Then store your goal-oriented money in a place where you’re unlikely to use it.
“If you want to reduce impulsive purchases, put more money into the account you’re saving for your goals and reduce the amount you can use right away,” Minehart said.
It may also be helpful to think about why you continue to make impulsive purchases.
“Purchases are often made not because of a strong desire for the item itself, but to meet emotional needs or to relieve stress,” said Kelly of Switchback Financial.
According to Kelly, it’s also helpful to write down your values and make sure your purchases match them.
Of course, at this point, you may forget everything you promised to yourself. If you see something online that you are sure you just have to have, take a deep breath.
CFP Jessica Gettel, founder of Pavilion Financial Planning in Allentown, Pennsylvania, said:
“If you cool your urge, you’re likely to forget it by the next day,” she said.
Goedtel also recommends unsubscribing to marketing emails. “If you don’t know about it, you won’t be tempted by the 50% off sale,” she said.
In addition, you can make unplanned purchases difficult for yourself.
“Don’t store your credit card in the mobile app,” said Meinhart of Parsec Financial. “And buy with a debit card linked to your checking account assigned to your monthly spending.”
Impulse buying is a problem for consumers.How to control habits
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