Is your shopping cart full of things that are not on your shopping list? Is your wardrobe filled with clothes that you hardly wear? If yes, there are high chances that you may be a shopaholic, and you are not the only one! You may have made a gazillion resolutions and promises to refrain from unnecessary shopping, but to no avail, thus leading to a fall in your financial management. Go through the following tips to gain a lesson or two on how to financially meet your shopaholic needs.
Refrain from adding unnecessary items to your list. If you are on a budget, your shopping list will generally entail items that you really need and are essential for fulfilling those needs. Not all of us can afford to spend like the Kardashians, and thus it is vital to stick to a stringent list of things that are required and things that are not.
Make a list according to your budget. Start off by looking at how much of your income you can actually use for indulging in items that tempt you and then limit yourself accordingly. A tip for staying on budget could be setting up another account which is linked to your main bank account. When depositing your paycheck you can keep a certain sum of money aside for in account, which you can use to meet your luxurious needs. Most importantly, you can also keep a tab on and regulate your expenditure effortlessly. This may seem daunting, but is extremely easy with online banking and bank apps.
Withdrawing a certain amount of cash and using that amount to shop, will certainly help you save up more than using and maxing out your card on every shopping spree. If the movie Confessions of a Shopaholic has taught us anything, it is that a true shopaholic is unable to abstain from shopping even if they have maxed out 12 credit cards! Thus, using cash instead of a card on your shopping spree is a lifesaving tip. Moreover, using cash can help cut down unnecessary spending. Using cash when going out, be it for buying clothes or accessories is a definite one-up from using a credit or a debit card, which can ultimately dig a deep hole of debt for you.
Secondly, as an ultimatum for when you find yourself deep in debt, withdrawing a certain sum of money and freezing your credit card may be the extreme, but necessary choice. Of course, by freezing, we mean not in the literal sense. Although literally freezing your card may aid you to stop using it for a while, you may still be tempted to break the ice if there is a 50% off at Zara’s.
A SOS tip to accurately fund yourself as a shopaholic is to invest in something that is, of course, risk- free. Abstain from investing in stocks that you do not know about and are unaware of. Starting SIPs in mutual funds and recurring deposits is a helpful tip where you can first invest and then spend. Moreover, keep yourself updated on interest rates and market trends.
A savings account is a definite rescue to aid you when in debt. Stock your savings in a bank account. This does not only help shopaholics, but can prove to be useful in emergency situations as well. Suppose you are robbed? Suppose you get a big dent on your new, fancy car? A savings account will come to save the day! You can use the saved money to meet incurred costs. Thus, put a certain amount of money in savings as soon as possible. Importantly, rather than spending the money available and putting yourself in a lurch, it is better if you keep it away, saved. What’s more? You even earn a modest return on a savings account. Savings account like Kotak 811 gives an attractive interest rate of up to 6% per annum.
Turn your clutter into fortunes by reselling items that you do not need on sites like eBay. Go through all the items that you may have brought and sift through what you need and do not. Selling unused items on eBay can help you gain income and is especially helpful if you are in debt. You can also donate your clothes to various NGOs.
To conclude, a final tip is to look where your money goes. As a shopaholic, you may tend to do make extravagant expenditures not realizing how that can have an adverse effect in the future. The cost of an item maybe subjective in nature, but it is important that you weigh your options and ask yourself if the item is really worth it.Tags: savings account, saving tips
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