This one is very simple. A lot of us buy a lot of things on impulse, only to later wonder why we bought it, or to not use it or eat it after all, and then we realize it was just a waste of money. Multiply these impulse purchases by however many times you make them and by the dollar(s) they cost, and they can add up quickly.
Let’s say you make impulse purchases of $3 to $5 or $10 five times a week. Averaging that out, it could add up to $30 or more a week spent on items or food you really didn’t want or need.
So here’s the technique to practice. Set yourself a threshold amount of money. Anything that costs more than that, you wait a certain period of time (the cooling-off period) before you allow yourself to buy it.
One purpose of this technique is to prevent impulse purchases. If even some portion of your money is spent on impulse purchases, giving yourself a cooling off period can keep you from making a number of those purchases. By giving yourself a cooling-off period, you give yourself a chance to evaluate whether you really need that item. You might end up amazed at how many things you do not purchase simply because you waited. Read the rest of this entry »