The Importance of a Budget

Making a budget, along with the will of staying on that budget, is the only way to reduce impulse shopping. Having a strong will is important because when we are out shopping and see things we like it is our natural impulse to want to buy it. If we know what our spending limit is it will control those impulses. Even small purchases will add up very quickly and can seem like you are not spending much when actually you have spent too much. Spending too much will cause you to be broke until your next influx of money.

Being broke means no money to invest in your future and accomplish what you are striving for in life. If you are always broke you are willing to settle. Living by a budget means saving for the unpredictable things that happen in life as well as necessities like buying a car. Of course this also means you must pay for insurance and gas which is another important reason for not overspending. Having your independence may also open opportunities that may be further from your house that you normally would have declined because you were relying on a ride.

Budgeting means having to sacrifice in the present time and giving up some things. It will teach you to have self-discipline which will benefit you in the future. It will also teach you to look for things you enjoy doing and making choices based on what you can afford. Making a list before you go shopping is important. If you can begin the habit of sticking to that list, you’ll eliminate a lot of impulse buying. For other purchases, make it a habit to plan them, shop around for a better price or maybe even get it for free somewhere. Doing these things will help you make better purchases and cut down on those pesky impulses. When you show up to a store where you plan on buying something, it is a good idea to have the amount of money you want to spend and nothing more.

You could start a splurging savings fund. It might even be fun watching this account grow knowing you can spend it anywhere you want and this amount is not being taken away from your budget. It also really makes you feel good knowing you are in control. Impulse buying will quickly spiral you in the wrong direction and probably not make you very happy. Developing these habits will take time but it will be extremely rewarding in the long run.

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