Monday 1 October 2012

Cash Stash - Money Savings Envelope (Part 2)

Are you ready for the next way to help your Cash Stash to grow into a bit fat pile of money?

Here it is...
2)  Impulse Buying

We all love a good impulse buy!  We wouldn't be human if we didn't ;)  But how often do you get home and realise that you just spent a whole lot of money that you hadn't planned on parting with before you left home?  I am guilty of that one!

The first step to conquering this one, is setting yourself some 'big picture' financial goals.  I did this at the start of the year, and it has helped me immensely! Having a big target in mind, really helps to put things into perspective when out and about in a shopping centre (or shopping online!).  I wrote about setting short and long-term finanical goals in my Organising Finances post earlier this week, which you can read about here.  So, when you are shopping and pick up something you hadn't planned on buying, think of these two questions:  

- Do I NEED this right now?  

- If I buy this, is it helping me to achieve my financial goals?  

If your answer is no to one or both of these questions, use your willpower to put the item back!  You know you can do it!  Then, to give yourself a pat on the back, take the money that you would have spent, and put it in your Cash Stash!  Remember, physically move the money out of your purse and into the savings sections of your purse/handbag right there in the store.  If you don't move it immediately, chances are you will forget later!

This is where you will see your cash stash grow, because this is the big leak in many budgets.  One would-be $50 impulse buy, suddenly sees that cash stash look so much healthier!  I will admit that it is really hard to move a big amount of money out of your spending allocation into the Cash Stash, but as I said above, this is where you see your money pile grow - and you will thank yourself at the end of the week when you count those pennies!  It is quite confronting to think that you would have just spent all that money on something that isn't on your list, nor contributing to you achieving your financial goals - and it makes you a stronger person in the long run.

And remember this doesn't have to be just for big ticket items.  How many times have you seen something on promotion while doing the grocery shopping - that is NOT on your list, and you pop it into your trolley?  Chocolate, ice-cream, snacks, a cute notepad, little toys for the kids - ask yourself that all important questions - Do I need this?  I think you know the answer ;)

I once learnt a really valuable tip from a friend who said that if you see something that you think you 'love' but are not sure if you should buy it, then you should leave it there.  If you go home and keep thinking about it, then that is a fair indication that you would use it and you really want it, so then you can work out if you have the money to go back and buy it - and you know that if its something that you really want, you will find a way to pay for it!  I use this principle all the time - and I rarely go back to actually buy the items, which shows me it was, in fact, an impulsive moment.

How is your Cash Stash going?  Have I convinced you to give it a go yet?

More ways to build up your Cash Stash are just around the corner....

Click these links to read more:

Cash Stash - Money Savings Envelope (Part 1)


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