Monday, March 24, 2008 Questions for your Inner Shopaholic By Maricel Aznar Cortes STC Media Communications student
YOU see it, you want it. That’s part of being human, no matter how old you are or how much you have. People are forever looking at what other folks have—new clothes, new make-up, a new CD—and thinking they would like to own it, too. But buying things just because they are “what’s cool now” can leave with you very little or no savings and a closet full of purchases that you really don’t use.
There are a lot of choices we make in life, including financial choices. We all make financial decisions that may not be the best, and we find ourselves living with the consequences later on.
Setting a budget is the first step to stopping impulse buying.
Start by writing down your allowance. Next, write down the things that you want to do or buy during the period and how much each item is likely to cost. (Don’t worry about items that your parents will cover.) Things you need to plan for might include clothing, sports equipment and activities, such as concerts and eating out.
If, after making a budget, you discover you want more than you can afford, you’ll need to decide what things to get and what to skip. In other words, consider prioritizing the items you want to buy. Maybe there are some items that you can postpone purchasing. You’ll have to make some tough choices, and to help you, here are some questions to ask yourself about each item. There are no right or wrong answers. Hopefully, these questions will help you reflect on your purchasing decisions.
Why do you want the item?
Your best friend might have a new computer game. Do you want the game because you think your friend’s cool or because you actually want to play the game? It’s also important to ask yourself if you’re trying to keep up with the spending habits of a wealthier friend. It’s important to remember that there will always be people who will have more or less money than you. Buying something just because someone has the same item is not a good reason for making a purchase.
Will you use the item more than once?
Wanting can be more compelling than having. Don’t blow a big chunk of your budget on something that never sees the outside of your closet again.
Will a different purchase make you just as happy?
Maybe you can’t afford a whole new wardrobe this period, but one or two shirts will be enough to spruce up your look.
What are the things you won’t be able to do later if you make this purchase now? Buy an expensive pair of jeans, and you may not have the money to attend a concert next month.
How will this purchase affect my plan for one of my long-term financial goals?
Too many concert tickets this time could put off the day you buy a car, and too many expensive athletic shoes this year could put that big beach trip out of reach.
What if your spending choices match those of your friends? That’s fine—as long as they really are your choices. Get in the habit of making your own decisions about money, and you’ll probably be happier about each peso and purchase you make.
Finally, don’t ignore your past mistakes.
If last year you ran through your December holiday money by the first week of January, you might try to pace yourself this season. Or maybe you bought a CD on a friend’s recommendation last year and hated it. You might think twice about taking his advice again, or decide to borrow the CD so you can listen to it before you head to the store.
