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We are still in Step 1 of 8, A Balanced Budget, and we will be here for a couple more weeks because it is the hardest and the most time consuming step. Once we get past this first step, we will be flying and checking off the next marks on your fuel gauge until you have a full financial tank in no time!
Last week, I suggested that most likely, your entire budget isn’t out of whack. There are probably one or two (maybe three) areas of your budget that are causing your checking account to bleed cash.
Today, I want to give you the first of three techniques I have used to correct problem areas of my budget.
I don’t like to admit this as a man, but when I get bored, I’ve been known to participate in a little retail therapy. I’m the sort of person who is susceptible to an impulsive buy if I have spare time and so, I’ve had to practice what I preach more often than I’d like to admit.
One of the most effective ways of curbing retail therapy or impulsive online purchases is what I call the 24-Hour Pause.
When I am feeling bored or prone to an impulsive online purchase, I wait. If those two words didn’t just stop your heart, then you probably don’t suffer from making impulsive purchases. But for those of us who do, waiting is purgatory.
What I have found is that in the 24-hour waiting period, my excitement for that particular item will almost always wane. What was once a “have to have right now” becomes a “maybe I’ll get it later, but probably not.”
It is amazing how much money 24 hours has saved me.
The next time you feel the urge to purchase something online or swing by your favorite store on a whim, practice the 24-Hour Pause. If you find that after 24 hours you still want that item and you have room in your budget, go for it! But if not, you just stopped the bleeding from your checking account and are on the path towards financial health!
Next week, we will further expand upon these techniques of recognizing and stopping the problem areas of spending in our lives with my technique for when you find yourself lacking the will power to say "No." Sometimes we just need a little extra help to control our spending and move towards the financial future we desire.
Zach Santmier is the owner of Trumble Agency, Inc. and the author of the personal financial course, Increase. He focuses on helping families escape paycheck to paycheck living so they can freely pursue their ideal future.
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