Never buy on impulse

Our worst mistakes with money are often the things we do on impulse. Retailers price items at $49, $99 and $199 because research shows that most of us will "buy it now" at those price points. We typically put a lot of thought into larger purchases, but it is the smaller impulse purchases that often bust our budget.

I have an odd personality in that I am a tight wad but also an impulse buyer by nature. In order to control my impulses I follow a process similar to one recommended by Larry Burkett.

I keep an "Impulse List" in the notes application of my cell phone. Rather than purchasing an item that is not in my budget I add it to my list and abide by the following rules.

1) An item must be on the list for 2 weeks before I can purchase it.

2) I must get a price from 3 different sources.

3) I can only have 2 items on the list at a time.

4) I must budget for it and pay cash.

I implemented this strategy a few years ago and can identify with Larry when he wrote:

"I rarely buy anything on impulse. Do you know why? Because long before I have found two more prices on the first item, I find two more items I would rather have. A person could easily go broke saving money on good buys. The only way to conquer the impulse is self-discipline. Without discipline, no budget will help. 'For a man is a slave to whatever has mastered him' (2 Peter 2:19b)."