Tackling Impulsive Spending
Enjoy this week's edition of the Planner's Beta
Beta (n) - climber's jargon that designates information about a climb This digest's purpose is to share observations, ideas, and treasures found this week which you may also find insightful. Sharing does not mean it's an endorsement. I am endorsing the pursuit of knowledge and exploration.
You Can Learn to Manage Your Impulsive Purchases
How can you prevent your next impulse purchase? Understanding why we make the spending choices we make is the first step in ensuring that our purchases are thoughtful. While having a budget in place is always a good idea, understanding your unique approach to making spending decisions can help create a safeguard for emotional spending.
In this article from Money, Dr. Brad Klontz, CFP(R) and financial psychologist shares some of the reasons we have a trigger finger in consumer shopping. Most importantly, he also shares ways we can set up our own defense against impulse buying.
Consider these tips from Dr. Klontz:
Look for external influences on your shopping decisions. Is something or someone leading you to browse, search for, or spend money on something you typically wouldn’t consider buying?
Make a list of your impulse spending “go-to’s.” Create a process for those purchases, such as scheduling when you buy them (e.g., once a month instead of on impulse).
Focus on meaningful, long-term goals when faced with a short-term decision. Connecting the short-term decision to buy something as a hurdle to achieving something meaningful (for example, being less stressed about finances) can strengthen your ability to forego quick purchases in the future.
Keep lists of desired purchases, and review them during a less emotional time. This wait-and-see approach can keep your wallet safe.
This Month's Financial Planning Item - Reviewing How to Maximize Your Savings
The K Shape Recovery led some household's savings rates to skyrocket. The personal savings rate is the highest it has been since the 1970s. Now, families may be struggling to optimize their savings strategies because of the assets they accrued.
You may have extra cash on hand, and you want to save for the future. But you may need help identifying all of the different account types to consider for your savings. This 17 point checklist provides a structured outline to guide your thoughts regarding available and appropriate saving strategies. It covers accounts across the following categories:
Foundational Savings
Healthcare Savings
Retirement Savings
Employer-provided Benefits
Business Owner Savings
Accounts To Help Future Generations
Tax-Deferred Insurance Options
Other Account Considerations
If you need independent advice on managing income and savings, please review the services I offer and place an introductory appointment on my calendar.
If you are a current Pursuit Planning and Investments client, securely upload any documents needing review to PreciseFP. I am happy to help proofread any resumes, conduct mock interviews, or support you with any career decisions you face. We can discuss this in our next scheduled check-in meeting, or feel free to place an appointment on my calendar.
Quote of the Week
"No written law has ever been more binding than unwritten custom supported by popular opinion." - Carrie Chapman Catt
Have something on your mind? Schedule a free call with Nate.
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