Compulsive shopping is one of the biggest roadblocks in saving money. Every now and then it is nice to have a nice new gadget or maybe a purse or new furniture but when it comes to the point when it becomes excessive, it can be very deleterious to your financial condition. Unless you have a multimillion dollar business and you have a trust fund, shopping excessively should never be your kind of therapy. Cost of products, branded or otherwise are already at stratospheric heights so it would be best to focus on pulling back and assessing your condition.
Embrace the truth
The fact is, unless you embrace the reality that you are compulsive in your retail decisions, you will not be able to move forward to saving money and increasing your depleted account. How do you do this? You might want to check your home or closet. Look at the items that maybe starting to overflow but most of the time, you do not use these items. Look at those “investment pieces” that you have. Are they really worth investing on? Ask your family and friends about how they think your retail habits are. Sometimes, you need the help of others to identify if you shop excessively on one thing.
Limit your cards
You have 12 cards? Why? Think about it, credit cards are very detrimental if you do not pay them full. Credit cards are not extensions of your wallet. They are extensions of your debt tab. A good way to minimize shopping excessively is to cut down on your credit cards. Focus on a credit card with the lowest possible APR and use them only when necessary. Also, your “hard earned cash” should undergo a rigorous budget analysis to ensure that you can only spend an amount that you can actually spend on. Did you pay your insurance policies yet? Have you set aside budget for emergencies and for your retirement fund? Any money that is left behind, use them for whatever purpose you may have.
Make a list and stick to it
Lack of organization makes someone a compulsive shopper. By creating a list, you limit how much you spend and make sure that you focus first on the needs before the wants.
