5 Tricks to Get a Handle on Unnecessary Spending

This is a guest post by Carrie Davis, lead columnist for Spend On Life.

I know. It’s been staring at you for weeks from the shop window, and you just have to have it. It would go with everything in your closet, and it so perfectly expresses your personal sense of style.

Yes, you’re trying to pay off your debt—not add to it—but clearly this is the exception to the rule. I mean, we’re talking about the ultimate accessory here. And you’ve been working so hard to pay down your debt lately, you deserve a small (okay, a medium-sized) reward.

Green scarf syndrome

While very few of us are as addicted to shopping and spending as Rebecca Bloomwood in Confessions of a Shopaholic, we all can recognize some part of ourselves in her.

Whether we like it or not, marketing messages, store windows, and glossy catalogs delivered to our mailboxes all aim to find the chink in our debt-protective armor. We may have the best intentions of paying down our credit card balances and curbing our spending, but when we stumble upon something really pretty (and possibly even reasonably priced), those intentions often fly right out the window.

That’s when the line between “want” and “need” gets a little blurry. I mean, where does the very well-constructed leather purse that holds everything while still looking incredibly chic fall exactly? Surely it could be described as a necessity; not only does it help to maintain our sanity each and everyday, but it also makes us look stylish and pulled together in the process. And, anyway, life is meant to be lived, right? You can’t always be in save mode…you have to spend spontaneously sometimes…right?

Well, it depends on your situation. If you’re drowning in credit card debt or living paycheck to paycheck, then no, you can’t afford to buy anything beyond the absolute essentials. For purchases that do lie slightly on the other side of essential, don’t even think about whipping out that credit card until you’ve done the following:

#1 – Draw up a budget
I know you’ve heard it before and that the task may sound daunting, but budgeting can actually be fun. It allows you to look at your income and see how you spend your money to decide if your funds are going to the things they should be. No matter how dire your situation feels, making a budget will almost always help. Use whatever method works for you: pen and paper, Excel spreadsheet, or even one of the dozens of online applications available now like Mint.com.

#2 – Make a “Want List”
When you see something you really want, don’t buy it right then. Rather, jot down the item and its price on a “Want List.” Take a peak at your budget (if you don’t have one, create one…see #1 above). Then sleep on it. If you’re still thinking about the item the next day, and it fits reasonably within your budget, go back and buy it.

#3 – Keep your receipt
Just because you bought something on impulse doesn’t mean you can’t return it the next day. If a blouse isn’t flattering, doesn’t fit perfectly, or doesn’t go with your favorite pair of pants like you thought it would, take it back! Think of returning items like earning money. You’re trading in something you don’t really want or need for cold, hard cash (or a reduced credit card bill, as the case may be). Only keep items you really know you’ll enjoy and use for a long time. Everything else is just going to find its way to the back of your closet. Return it while you still have the chance, and use your money for higher purposes.

#4 – Steer clear of temptation. Malls, for instance, are solely designed to part you from your money. Open and airy spaces, coupled with food courts, bathrooms, and Starbucks keep you fueled for hours of shopping. Artistically staged shop windows showcase luxury items that are most likely out of your budget, which makes you crave them even more. If you walk by a cute row of shops on your way to work every morning, take a different route instead. Don’t just pop into a store to “browse” if you don’t have the money to buy. It will only end badly for you or your wallet.

#5 – Have a mantra. “$700 of credit card debt” or “Saving up for grad school” are examples of phrases you should say to yourself before whipping out the plastic. Even in a recession, our society focuses on the importance of material items and appearances. But remember, you have better things to do with your money than keep up with the Joneses. When tempted by a cute new pair of shoes, try to remember your larger financial goals. Some people also do this by keeping their credit cards in sleeves with written reminders on them.

In time, you’ll find that resisting impulse purchases gets easier. The key is to strengthen your “No” muscle, rather than continually giving into your “Yes” one. Your priorities will start to change, and you’ll find yourself more interested in paying down your credit card debt than adding to it. You’ll soon realize that a new pair of heels doesn’t hold a candle to achieving financial freedom. Who needs another blister on their pinky toe anyway?

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Carrie Davis holds more than 10 years of experience in the print and online publishing industry. She is the lead columnist for SpendOnLife.com, an online repository of credit and identity theft resources. Through the site, Carrie leads an initiative to ensure readers have the latest and most thorough information on personal finance and credit-related topics. She has a passion for informing others on achieving financial independence. Follow Carrie and the rest of her team on Twitter @SpendOnLife.