1st Rule: Look for the reason behind (excessive) shopping
It's important to understand the reason that drives you to shop. Through shopping some people seek to boost their self-esteem, while others believe, even subconsciously, that by means of what they acquire, they will more easily join a group of friends or a social group in general. There are, of course, those who “let off steam” by shopping, in order to keep their minds off any problems or a difficult daily routine. Whatever the reason behind shopping, it's important not to use it as an excuse for purchases that do not meet any substantial needs and might cause financial problems.
2nd Rule: Set priorities
Do you have this month's payroll in hand and feel the need to reward yourself? Before acting impulsively as regards your purchases, pause and think: do you really need all these things or would it be better to prioritize? For example, what is more important to you, buying an expensive handbag or saving that amount, so that at a later time you can buy or lease a car?
In fact, smart solutions such as Money Box or term deposits are available in the market, which can boost such savings efforts.
3rd Rule: Set a specific budget and don't exceed it!
This, perhaps, is the smartest thing you can do in order to avoid unnecessary purchases. Setting a financial limit on your purchases will help you turn a deaf ear to the call of the... sirens urging you to give in! The prize, of course, is to stick to your budget, because any overruns will cost you dearly! Shopping with prepaid cards could help you in this respect, since you load them with a specific amount, hence avoiding the risk of overindulging!
4th Rule: Moderation in “Buy Now Pay Later” too
This method of payment is considered the rival of credit cards, as it allows consumers to make purchases in interest-free instalments, without being required to have a card. This is clearly a convenience that can backfire if not used prudently. This is because consumers, knowing that they'll pay later – usually after a few days – may be tempted to make larger or more purchases than they actually should do, given their financial capacity and other expenses.
Technology has made shopping easier, faster and more immediate, “unlocking” possibilities that would once have been considered unrealistic. To be able to complete a purchase at a store anywhere in the world from the comfort of one's own home is undoubtedly an advance. But this freedom, and others like it, in the world of shopping and payments, also requires caution, if consumers are to enjoy the benefits without the risk of overreaching their budget.