7 Tips to Kick Impulse Purchases to the Curb

You’re standing in the checkout line at the grocery store browsing the magazine headlines, without even thinking about it you toss a pack of gum in your cart.

You’re driving home from work and you had a really lousy day. Since the mall is on your way home, you stop in just to window shop and leave with a brand new two hundred dollar coat, even though the one you’re wearing is just fine.

A friend wants to stop for a cup of coffee on the way to the library. You didn’t really want one, but once you’re in the coffee shop with him you order a latte. You end up throwing half of it away because you didn’t really want it in the first place.

Any of these moments sound familiar? They’re moments when we succumb to impulse buying. We all do it. But it can wreak havoc on our wallets. Want the cycle of undrunk lattes, unchewed chewing gum, and extra winter coats to end? Use some or all of these tips to quit impulse shopping and get your finances under control.

Shop with a list. Write down what you need from the mall or grocery store before you head out. Be thorough and careful. When you get to the store, don’t deviate from the list. This can be tough if you’re new to it, but over time it becomes a habit and yields positive results for your finances.

Go shopping less often. Head to the mall when you need a new outfit for work, not because it’s a Saturday and you’re bored. Go grocery shopping once a week or less instead of every day on your way home from work. The less time you spend with merchandise, the less likely you are to buy it.

 

Don’t grocery shop hungry. This is an old piece of advice, but it works. If you go to the grocery store when you’re hungry, you’re more likely to make impulse purchases based on what looks delicious right then and there, whether or not you’ll be interested in it later in the week when it actually comes time to eat it.

Shop with a friend. You’re less likely to break your new rules if you have a chaperone.Find a friend who is willing to hold you accountable and/or shares your goal to quit impulse buying. Explain your goal to your friend before you go and then ask her to keep you in check on your shopping trip.

 

Track your expenses. Write down every penny you spend and what you spend it on. Whether it’s an impulse buy or a planned purchase, track it. If you can see where your money, you’ll be less compelled to spend it on unnecessary items. For a really stark look, take a sheet of paper and write down your income for a month and your spending in the following categories for that same month: food, savings, and impulse.

 

Take a deep breath and think about it. If it’s a candy bar at the grocery store you’re after, then close your eyes for a moment and reevaluate the purchase. If it’s a larger purchase like fancy pair of shoes or a new smart phone, head home to think about it. If it’s something you really want, take the time to shop around and find exactly what you want for the right price.

Make a slush budget for impulse purchases. Sometimes we don’t want to worry. Sometimes we want to forget limitations and just shop because it’s fun. There’s nothing wrong with that. But you’ll save yourself plenty of headaches if you budget for those excursions and stick to it. If you set aside $100 and make a date to go shopping with a friend, you can then blow that hundred on whatever you want – guilt and debt free.

How-to keep your New Year’s finance resolution

Spend less.

Save more.

Get out of debt.

Financial resolutions are some of the most common promises we make to ourselves at New Year’s. It’s a great feeling to be in control of your finances and debt free with a healthy savings account. But having that stability takes more than a resolution to save more sealed with a champagne toast. Many resolutions don’t make it past the first week of the new year.

Often, New Year’s resolutions don’t last because we never take the step of turning a resolution into a goal. A resolution is merely the moment of formal decision: I will spend less this year. There’s no measurable way to determine your success and there is no plan to succeed.

A well-defined goal, however, is much easier to measure. If your resolution is to save more, then you might make a goal like this:

I will put five percent of each paycheck into my savings account.

Read that statement again: I will put five percent of each paycheck into my savings account.

Does it sound more powerful and doable than save more?

I bet it does.

Why? Because this goal is clear and concise. It tells you exactly what you’re going to do and when you’re going to do it. It’s much easier to make a change when you know exactly how you’re going to do it.

The key is to take the time to consider what you really want and then plan how you will make it happen. Be specific and realistic and you’ll be on your way to keeping your resolution(s). Now that’s worth a champagne toast.

Here are some more examples to inspire you in your quest:

Resolution: Spend less.

Possible goals:

I will bring my lunch to work instead of buying it at least three days per week.

Before I go to the mall, I will set a budget and stick to it.

Resolution: I will be debt free.

Possible goals:

I will pay $100 each month toward my credit card bill so that I can pay it off by December 31, 2012.

I will take some time before the end of January to assess my debts and create a realistic debt pay-back plan.

What are your New Year’s Resolutions and how are you going to turn them into goals you can keep in 2012?

5 ways to save money without really trying

We all want to save more money, but we often don’t feel like we can do it. It’s easy to make excuses or to dip into our savings when something fun tempts us. But there are a few ways to save that are so simple you almost won’t notice you’ve started doing it. Try one or all of these five examples to pad your savings.

 

1. Keep the change. Switch your plastic for cash to help keep track of your budget and then implement this easy savings strategy: Don’t spend your coins. At the end of the day or the week pop all the coins into a jar or piggy bank – you’ll be surprised how quickly the change adds up! If you’re really committed, you can do the same with one-dollar bills.

 

2. Drink tap water. Invest in a reusable water bottle and fill it up everywhere you go. Water is the best liquid we can give our bodies, it’s more thirst quenching than any drink (even those fancy sports drinks). Your body and wallet will thank you when you cut your calories and your spending by switching soda and juice for water.

 

3. Use an automatic transfer. Instead of just telling yourself to save every time your paycheck comes in and then choosing a number in the moment when you’re tempted by your new influx of cash, think ahead. Set up an automatic transfer to your savings account that occurs as often as you get your paycheck. Choose a reasonable number that makes you happy and then treat it like a bill you need to pay.

 

4. Get rid of your credit card. There are very few times in life when we truly need to buy anything with credit. Avoid temptation by paying off and canceling your credit card(s). If you want to keep one for emergencies, hide it in a different part of your wallet and don’t touch it unless you’re in dire straits.

 

5. Downgrade your cable. How much television do you really watch? If you’re like most people, you’re paying for a lot more than you use. Look carefully at your bill and all your TV and movie watching alternatives like Netflix, Blockbuster and Hulu, and then decide on a less expensive option that still allows you to enjoy your favorites.

5 last minute gift ideas that won’t break the bank

If you’ve left your shopping for the last minute, there’s no need to panic. You can get out of this pickle easily with a card and cash. But if you don’t want to give cash, you still have many budget-friendly options (yes, even if it’s Christmas Eve). Choose any of these five ideas or use them as a jumping off point to inspire your own creative gift solution.

 

1.     Box of candy. Depending on your talent, time left until Christmas, and ambition you can go for homemade or store bought for this festive gift. Stop by a candy shop and get an assortment of handmade candies. Do a gift basket of the recipients favorite candy bars. Or take the time to make your own homemade truffles or buckeyes wrapped up in a fancy box.

 

2.     Coffee lovers assortment. Hit up a local coffee roaster to buy some fresh beans in a variety of styles and/or flavors. You can find pre-made gift baskets or mix and match items to create your own. Perhaps you’d like to check out a thrift store to find an inexpensive mug and fill it with homemade chocolate coffee spoons that you wrap up with a pound of tasty coffee beans?

 

3.     Magazine subscriptions. Most magazine subscription prices are really cheap. You can subscribe online and print out a little note about the subscription to put inside a holiday card. Every month when the recipient receives the magazine they’ll remember how thoughtful you are. (Hint: This is one of those gifts that’s easy to get if you’ve left all your shopping for Christmas Eve.)

 

4.     Books or gift cards for books. E-books are cheap, easy to give and download instantly. You can also give a gift card for a bookstore or e-book store; for a special touch you can add a list of books that you like and think your loved one might like, too.

 

5.     Photos. Head over to a the photo department at the store and print out a photo or two. Purchase and inexpensive frame to slide the photo into and you’ve got a thoughtful gift that will delight just about anyone.

10 Handmade Christmas Gift Ideas

A great Christmas gift doesn’t have to cost a lot of money. It’s easy to get swept up in buying craze of the season and feel pressured to fork over a lot of money for video games, fancy candy, hefty gift baskets, or the latest techie gadget, but for just a few dollars and with a bit of time you can make meaningful gifts that are sure to bring smiles. Try one or more of these ten ideas to accomplish your holiday gift giving frugally and thoughtfully.

1.     Baking mix in a jar. Grab your favorite cookie, muffin, or quick bread recipe and get to work. Layer the dry ingredients in a glass jar and seal tightly. Tie a copy of the recipe to the jar. Voila! Baking mix in a jar: pretty, tasty, and made especially for someone you care about.

2.     Knitted and crocheted winter gear. With Jack Frost nipping  at our noses this time of year, no one can resist donning a hat or scarf, especially one handmade just for them. If you’ve got the skill, put it to work on a pair of mittens for a loved one or scarves for all your friends.

3.     Homemade candies. Boxes of little candies like buckeyes, truffles, and fudge are irresistible. Especially when you put your homemade treats into cute, festive boxes and tie them up with ribbons.

4.     Framed poetry. If you’ve got good handwriting you could try your hand at a bit of calligraphy for this project – copy a favorite poem onto some high-quality paper, dry, and frame. If your handwriting isn’t the best, you can get a similar effect by choosing a favorite font and printing the poem out instead.

5.     Bath salts, fizzes, and bubbles. Don’t drop a ton of cash on fancy bath soaps, scented bubble bath, and bath bombs shaped like Christmas trees when you can make your own. For just a few dollars you can pick up a few items like Epsom salts, essential oils, castile soap, and plastic containers that you can easily turn into many homemade bath gifts.

6.     Canned goods. Did you can tomato sauce in the summer? Apple butter in the fall? How about make some pickles? If you can your own foods this gift couldn’t be easier. Head to the pantry and pick out a few jars of your best stuff. Add fun labels to the jars and wrap them up. Your foodie friends will thank you.

7.     Coupon booklets. If you haven’t got any cash, you can always give the gift of time. With some paper and markers, you can easily print up your own coupons that can be redeemed for your services like washing the dishes, proofreading documents, making dinner, or any skill you possess.

8.     Photos. Whether you frame them, put them in a scrapbook, or make a collage, you can’t go wrong with a sweet photo gift. Tell someone you love them, miss them, or simply that you have fun with them by reminding them of a special memory.

9.     Jewelry. Hit up a craft store for a basic jewelry making book and supplies. If this is already your hobby, great! If it’s something you’ve always wanted to do, now might be the time to try it. Simple necklaces and bracelets are the easiest to make, but earrings aren’t much harder for the more ambitious crafter.

 

10.  Candles. Whether its gel candles in a wine glass or hand dipped wax candles you fancy, these are surprisingly easy to make. Look for instructions online or buy a candle making kit. You can even make pretty candles out of the ends of candles you have around the house (just be careful about mixing scents).

 

Bonus tip: Wrap your gifts in homemade wrapping paper. The easiest homemade wrapping paper is old newspaper, but you can get much more creative than that if you like. Just grab some brown grocery bags or a cheap roll of packing paper and some markers, crayons, or paint and decorate to your heart’s delight!

Five ways to cut your transportation budget

Many people spend thirty to forty percent of their income on transportation. This can put an enormous strain on your budget. But there are many ways to cut your costs.

Walk or bike. Sneakers and bicycles are much less expensive than cars—and most people already have them. Spending a few minutes to calculate distances in your neighborhood and consider whether you really need to drive to the grocery store, pharmacy, post office, bank, etc. can save you a bundle on gas because those little trips quickly add up.  If you have a short commute, you can save a lot on gas and parking costs by walking or biking to work. You can also consider cutting out your trip to the gym or other exercise time in exchange for your new, healthy commute.

Public transportation. If you live in the city, it might make sense to sell your car and solely use public transportation like the bus and subway. But even if you keep your car, it is likely cheaper to commute to work with public transport. Some companies even offer incentives for employees who use the bus system or subway.

Carpool. If you have to use your car, consider ride sharing, especially for your daily commute. Drive into work with a co-worker or two and alternate which one of you drives. It will save wear and tear on your car and decrease gas costs for all involved.

Buy a used car. Cars lose value quickly starting from the moment you drive a new vehicle off the lot. But a slightly used car that is five years old or less—you’ll save a lot of money but still have a nearly new, reliable car to drive. You might even be able to invest in a type of car that you couldn’t afford new.

Shop gas prices. While it doesn’t make sense to drive fifteen miles out of your way to save ten cents a gallon on gas, there are smart ways to save money in this department. Compare prices along routes you usually drive (your commute, trips to the grocery store, your kids school etc) and within a couple miles of your house. You can save money on gas without have to spend gas to do it. Also, keep your eye out for specials, coupons, and rewards cards for fuel.

Make A List and Check it Twice – Setting a Holiday Budget

This is part two of a four part series on holiday budgeting. Part 1, Eight Ways to Save Money for Christmas for tips on finding cash to fill out your budget.

The key to successful holiday spending debt-free is knowing how much you have to spend and carefully allocating those dollars to the things you most want to do or give. Use these four steps to plan an accurate, affordable, and pleasing holiday budget.

Step 1: Determine what you can afford to spend.

Look at how much you’ve saved for Christmas this year, the paychecks you will receive between now and 12/25, and the other bills you need to take care of. With all of this information in front of you, choose a number that is affordable and joyful. Double check to make sure that your budget balances and then move on to step two.

Step 2: Make a list of all the things you want to spend money on during the holiday season.

Try to think of all the things you might spend money on. Here is a list of common Christmas spending categories to get you started:

• Gifts and Cards
• Food (special meals at home as well as dining out)
• Decorations
• Charitable Giving
• Entertainment

Step 3: Divide your holiday budget up between those items.

For tips on how to divide your budget, let’s look at two categories: gifts and entertainment.

Gift Giving:

Make a list of all the people you want to buy gifts for and how many gifts you plan to give them. Then put a monetary amount next to each name. Add them all up. If you match or are under your total gift budget, great. Go shopping and take your list with you to remind yourself of your budget. Come in too high? Go back and figure out who you can spend a little less on. Remember, how much you spend doesn’t equate to how much you love someone.

Entertainment:

This category can encompass just about everything else you spend money on in December from food for a holiday party to going out to the movies with the kids while they’re off from school. Take your time and be realistic. You don’t want to under budget on this section. Give yourself enough wiggle room to do the things you really want to do. But also remember that some of the most fun things to do are free or cheap: play board games, bake cookies, sing Christmas carols, etc.

Step 4: Track your spending during the holidays and regularly check it against your budget. Adjust as necessary.

Use a tool like BudgetSimple to track your anticipated spending against your actual spending. Seeing the real numbers will help keep you on track and help you get back on budget if you splurge on something unexpected (which we all do).

 

Cash in Your Closet – Trade in your clothes

Open your closet door. What do you see? A favorite dress, some nice shirts, your shoes, a few random items you shoved in there to get out of the way, and a few items that don’t really fit or you don’t really like but they’ve just been hanging there so long you’re used to them? That’s what my closet looks like anyway  – or it did until I cleaned it out for cash.

If you have clothing that is still in good condition, but you just don’t wear, it’s the perfect candidate to take to a thrift store or clothing exchange. It’s easy enough to do: just find a store near you, pack up a box or bag of clothes, and take them to the store.

The store employees will go through what you brought and decide what they’ll take based on the needs of the shop. They’ll then make you an offer on what they’re interested in. Anything they don’t want is your responsibility once again as is anything they do want but you won’t give up for what they’re willing to pay.

You won’t get a lot of money for your old clothes, but it’s still a great way to earn a little extra pocket change from items that would otherwise be collecting dust and taking up space.

In addition to clothes, you can usually sell jewelry, shoes, purses, and other accessories.

Some thrift stores also offer a better value if you choose store credit instead of cash. This can be a great way to clean out your closet and refresh your wardrobe. Take a few things in, bring a couple things home, and spend little or no cash.

If you have friends of a similar size, you could also have a clothes and jewelry trading party. Ask everyone to clean out their closet and bring over their best unwanted threads, open a bottle of wine or two, and dig through the piles of clothes to find what you like. If not all the items find a home, you can still sell them to a thrift store or donate them after the party.

Eight Ways To Save Money For Christmas

The best way to avoid those hefty January credit card bills, give the Christmas gifts you really want to give, and enjoy some of the fun (but sometimes costly) activities that happen in December, is to save for the Christmas season early. With a little discipline, by December, you can have a slush fund to draw from for holiday expenses.

But how do you do it? Try these eight tips.

1. Make a budget. Estimate how much you think you’ll spend in December. You can (and should) refine your budget once you know how much you’ve saved But think about your holiday budget now as well as your income and set yourself a reasonable savings goal. If you have a specific goal in mind, you’re more likely to work toward achieving it and implementing other saving strategies.

2. Set aside a percentage of each paycheck. Create a Christmas fund and pay it like you would a bill. When your paycheck comes in set aside a percentage of the money (whatever number is joyful and doable for you) for Christmas. The sooner you do this, the more money you can earmark for December. But even if you only have a few paychecks between now and 12/25, you can still save a good amount of money.

3. Work a little overtime. If you have a job where you can put in a few extra hours of work, do it. You’d be surprised how much you can earn by picking up an extra shift each week or getting to work half an hour early a few times a week. Just make sure to put all that overtime cash into your Christmas fund!

4. Pick up a second job. Lots of places need holiday help, so why not offer to be that help? You can earn a few extra bucks and maybe you’ll be lucky enough to work at a store where you can snag an employee discount.

5. Cut your discretionary spending. Do you usually stop for a latte on your way to work every morning? Consider bringing your coffee from home and putting the cash you would have spent on a latte into your holiday savings. Take a look at where your money goes and consider what items you could do without in November so that you can splurge on gifts and entertainment in December.

6. Earn and redeem reward points. Reward programs are everywhere these days. Most major retail stores have them. If you have a credit card or checking account, you’re probably already signed up for a bank reward program. Additionally, independent rewards programs like Swagbucks and MyPoints let you earn points by doing things you already do and then you can convert those points to gift cards or rewards. The key to these programs is paying attention. You might think your bank rewards program has nothing to offer you because you already have a DVD player or the other household items you can earn, but most programs now offer gift cards or will even deposit a money directly into your checking account when you reach a certain number of points.

7. Clip coupons. Start combing ads now for holiday items. This is especially useful for keeping your grocery costs down in December. Coupons for items like butter, chocolate chips, spices, and sugar appear this time of year. For every coupon you clip, that’s fifty cents or a dollar (or more) you didn’t have to save.

8. Sell stuff. Do a little autumn cleaning. Go through your closets, shelves, and cupboards and take your items to consignment shops. You’ll clear out a little space in your house and earn a little mad money for the holidays.

Cold Hard Cash – Stay in Budget

With credit cards accepted almost everywhere these days, it’s easy to just pay with plastic and never exchange bills and coins. Just swipe, sign, and go. You don’t even have to think about it.

But that’s the problem.

With the ease of swipe and go transactions, it’s easy to spend a lot of money without giving it a second thought. Imagine: Four dollars for a latte, fifteen for lunch, seven for an after work martini, and what the heck, another seven for a martini since you’re not driving. Add it up: thirty-three dollars just disappeared on just an average workday and your wallet isn’t any lighter than it was this morning.

What if you’d had to pay for each purchase with cash? And what if you knew that the cash in your wallet was your entire allowance for discretionary/fun/impulse purchases for the week?

Maybe you’d spend two dollars and get a regular coffee with cream and sugar or (even better for your budget) bring coffee from home. Maybe you’d pack your lunch more days during the week. Maybe you’d skip the second martini or keep a sharper eye for happy hour deals.

Why does this work? Because you have to think about it. The act of taking cash out of your wallet and watching the number of bills in your wallet dwindle forces you to think about the value of each dollar. How do you feel when you pass that ten-dollar bill across the bar and put three dollars back in your wallet (or two if you’re nice and tip the bartender)?

Plus, when the cash is gone, it’s gone. If you’re in line on Friday morning to get your latte and you only have three dollars in your wallet but the latte costs four, what do you do? It’s a make or break moment for your budget. You can grab the two-dollar coffee, skip the coffee altogether, or pull out your credit/debit card and pay for the latte. But if you pick the credit/debit card option, you’ll know as you sign your name that you just busted your budget for the week. Was the latte worth it?

It might not be easy to adhere to at first. But cash doesn’t lie. It’s in your wallet or it isn’t. You can’t overdraw from something that isn’t there. Try it for a week: Go to the ATM, take out your allotted amount for fun purchases, and see how it goes. Do you feel differently about your spending?

Personal connection: You can do this in more categories than discretionary spending. You could live your whole life with cash. But I’ve found a cash-only fun budget (eating at restaurants, going to the movies, impulsive latte buying etc.) to be easy to maintain because I can still use my debit card for groceries and large purchases (so I can still earn the reward points with my debit card program) and write a check for my rent, but I can’t mindlessly pay for an ice cream cone – I have to decide if I really want it and check to see if I have enough cash.