Tis the season…to spend money!  We all have things that we do for entertainment or to make ourselves feel better.  For some its food, for some drugs or alcohol, for some its sex, and for many it is shopping. Yes, shopping…especially this time of year. Shopping can be fun – even exciting.  People often justify it by saying, “I love shoes; I love cars; I love clothes; I just love nice things.” There is absolutely nothing wrong with that; but, there is something very wrong with spending money that you do not have.
 
We have become a society that measures love by how much we spend on someone, or by how much someone spends on us. Children know the holidays as a time when they will get more than they currently have.  If we do not receive gifts we somehow feel slighted or unloved. So, we shop, to make others feel a certain way, and we expect to make ourselves good.  Except those feelings are only temporary. The thrill of something shiny and new is wonderful for a short moment, and then reality kicks in when the bill arrives and we are struggling to pay. It’s like a drug high – you get a rush initially, but then you have to do it over and over to try and get that same rush (which you never really attain).  In the meantime you are going downhill fast.
 
While unnecessary shopping isn’t directly hazardous to your health, it is harmful to your finances, which can lead to health issues such as depression and stress.
  
Are you one of those people who leave the house for eggs and milk, and come home with eggs, milk, a coffeepot, candy, a scarf, and magazines?
 
​Here are some tips for controlling your urge to shop and saving your finances:

1. Establish a mandatory wait period. In business finance there is a period called a waiting or cooling off period.  During this time a company that has made an initial public offering must be quiet about it, so the value of the stock is not inflated artificially. There are also a number of other processes that utilize waiting periods like purchasing firearms in some states, divorce, and insurance policies. Create your own waiting period that applies to any non-essential purchases. You don’t have to have the latest automobile or iphone just because you want it in that moment.  There are things to take into consideration such as, “Can I afford this?”

 

• Impulsive shopping is just that – impulsive. Give yourself a little time and see if you come up with another decision. 
  
  
• How long do you have to wait? It’s up to you. A good rule of thumb is anywhere from 48 hours to 30 days. You might try using a sliding scale depending on the cost of the item. A $50 item could result in a shorter waiting period than a $2,000 item.
  
  
• Do not shop when you are in a bad mood. Many impulsive purchases happen during times of depression, anxiety, or other stressful emotional states. Feeling better because you purchased something does not last very long. That is because you have not taken care of the real issue which is internal.  Shop when you are feeling good mentally and able to make wise choices regarding purchases. Just because you do not purchase at the moment, you may be able to plan the purchase for a more suitable time which will keep you on track.
  
  
• Determine when you are most likely to make an impulsive purchase. Is it when you get paid? Is it related to how you are feeling? Is it when you are feeling lonely or bored? Is it when you are spending time with a particular friend? Do a self-assessment. Why do you splurge and when?
  
  
• Limit unnecessary purchases to items you can return. Often you feel differently after splurging, and when you get home you change your mind. Be sure you can return the item and get your money back.

 

• Be careful when opening anything you purchase. Save all of the packaging and be careful that you do not damage the item. Save your receipt, too.

 

1. Make a list of what you need and stick to the list. If it is not on the list – do not purchase it. Take inventory before you leave home and determine what you need. Your car might be 10 years old, but if it’s still running without any issues, you don’t need a new one. Do not be swayed by salespeople that stop you often during the holidays, and offer “deals” and “sales that you supposedly won’t see again. Funny thing is, we still see those deals down the line! When you leave the house

 

1. Online shopping. Unless you need the item and it’s cheaper online, purchasing anything online is too much of a temptation. It’s too easy and convenient to sit down in your house with your laptop and order away!  With all of the internet marketers out there, shiny nickels are plentiful but not plausible.

 

1. Keep your money where you cannot easily access it. Move extra money out of your checking account as soon as you get paid. Move it into an account that doesn’t have a debit card. You can still access the money for emergencies, but it won’t be easy to spend unnecessarily.

 
There is nothing wrong with shopping when it is done responsibly. It can be fun and rewarding, especially if you are not doing damage to your financial state. Remember, retailers do research on their market – you!  They know how and why the average person makes purchasing decisions; they know about baby boomers and millennials; they have done their homework!  Have you done yours?