Making a budget gives a lot advantages to your time being spent shopping. It can get one to be organized not only physically but mentally as well 👍🏻. Sometimes people interpret ‘budgeting’ in different ways whenever it simply means a spending plan based on income and expenses. In other words, it’s an estimate of how much money you’ll make and spend over a certain period of time, such as a month or year. “Why budget in the first place?” Some people may ask not knowing perhaps why so many do it. People budget to get themselves an understanding of how much income they earn, how much of that income is to be used to pay important expenses such as (electric/water bills, home bills, etc.), how much of that income can they use for themselves (wants/needs), and how much of that income can they put to their savings account if they are the type to save money. A lot of people tend to just use up their money as they wish, as soon as they get their hands on their paychecks, and that’s precisely the big main reason why so many have financial problems. These types of people don’t use up some of their time to really consider investing into what’s more important in their current lives. It’s the beginning of a habit, a lifestyle, that ultimately turns into a gigantic financial mess! To those that have been asking themselves ‘why bother budgeting’ I hope they will soon realize why smart people consider budgeting a normal lifestyle time investment.
Budgeting is not something to be scared of, it could actually become one of your best friends when getting to know how to use it, and using it wisely! When some people think of the word budget, they think, “that’s it.. goodbye to buying all the cool new stuff I was planning to spend on,” and let me tell you that ain’t the case at all! Budgeting simply helps you to focus more on what’s currently important such as monthly bills, phone bills, other kinds of bills, etc. It also helps you to have space for investing into your savings account or maybe your emergency account, so that whatever happens, you got a backup financial plan 💕(how sweet)! Another thing budgeting also does, is that it allows you to squeeze in that extra space for personal expense! Budgeting, you see, shouldn’t be something to be afraid of, but quite the opposite, to help you obtain success and true financial fulfillment. It can even give you twice the happiness and sense of accomplishment, than to just spending everything on your paycheck day.
Hang tight with me as I’ll be getting close to answering today’s topic question. Impulse spending is unfortunately a very big problem for many today. Studies show that over 87% of US shoppers make impulse buys, and more than 50% of all grocery is sold because of impulsiveness. Making yourself a shopping list is basically the same as personal budgeting for your finances. Holding a shopping list in your hands gives you a sense of order and an alarming thought mentally to remind you of what’s currently more important.
I personally have always had the knack to save stuff, it’s mostly a subconscious action of mine that doesn’t allow me to spend on more than I should. Perhaps the way I was raised or just how I act naturally concerning finances. However, as a human being, I still had moments in life where I desperately wanted something or as a kid, that cute little stuffed toy just wouldn’t stop staring at me as I walked past the toy shop and I just had to have it 😤. Those were definitely the moments where I impulsively spent on things I desperately desired without thinking twice about my consequences or things I had to face later on. Even as a teenager, sometimes I purchased things without thinking twice and regretted later on, thanks to my impulsiveness. So without knowing much about budgeting I just kinda automatically knew that I needed to invest, save, in order to reap the rewards later on in the future. It was then when I got to learn what budgeting is and how it works, it honestly saved my life and also one of my best friends ‘till this day 🥰!
In conclusion, budgeting keeps you in check before making impulse purchases and when getting into a habit of budgeting more in your life really helps impulsive shoppers cut down their bad habits. Whenever you’re mentally organized and have a steady goal, it’s almost hard to get distracted, but that doesn’t mean there won’t be temptations! It’s only the question of whether you’re going to yield to that temptation or not. Practicing these good budgeting habits determines your impulse shopping purchases.
Thank you so much for reading this essay! I hope you learned something new or simply enjoyed reading though! I’ll be posting more soon, so stay tuned!
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2 thoughts on “Economics Lesson 25: How does making a budget reduce impulse shopping?”
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Thank you so much, much appreciated! 🙏🏻