Be a smart shopper

Here's how to resist the urge to splurge.

1. Examine your spending habits.

Are your buying decisions motivated by your own values or by advertisements? Don't be influenced by consumerism and an obsession with spending.

2. Break down why you.

Shop and ask yourself what real needs are satisfied by shopping trips. Are you doing it out of habit because that's what all your friends do, or because you get bored easily? Finding other shared experiences like sports, hobbies, and special interest clubs can help break that circle.

3. You can get the same or better.

Shopping at flea markets and thrift shops. Are you rewarding yourself for small achievements? That's a good pattern, but you can look closer at what type of rewards motivate your best, and ask yourself if doing something fun is better reward.

4. Stay home.

If you don't need to shop, don't go shopping because you are bored. Don't use shopping as s recreation or amusement. Find other amusements and hobbies, if it is lonely, then invite people over, or organise a group to play games together.

5. Leave the money at home.

The easiest way to not buy anything is simply not to take any cash, cheques, debit cards, or credit cards with you when you go out. At most, take a small amount of cash for emergencies.

6. Buy used.

If you really need something and haven't been able to beg or borrow, go to Cash Convertors and get one for a few ringgit. Online auctions and garage sales are also good, although there is still the temptation to buy "stuff" you don't really need.

7. Buy for durability.

If you decide to purchase something, choose something that won't wear out, or won't wear out quickly. Also avoid purchasing items that will go out of fashion. Think through how you will use the item and how your choice will meet you needs for as long as possible. Thinking long term, a more durable item costing 30% more up front will still save you money if you can use it twice a long.

8. Buy for easy compatibility.

If you really like an item, think how well it will work with what you already have. Maybe a clothing item is fresh and flattering, but if it doesn't coordinate well with at least two or three pieces you own, you will either get limited use out of it, or worse, you may 'need' to buy more to use it at all.

9. Pay cash.

Studies show the average person spends less when paying with cash, and much more when paying with credit, possibly because when you use a credit card it feels at as though you are not parting with "real" money.

10. Make a budget and stick to it.

Don't treat your budget like a New Year's resolution. While creating and sticking to a budget requires self-control, it is really good way to get your finances under control.

Taken from: News Straits Times - 8 August 2012 (article), Google (images).