Consumer debt can creep up to large amounts even with small purchases. How you handle this debt determines whether you are financially moving ahead or falling further behind. When you have consumer debt, do you scramble to extinguish it like your hair is on fire or just ignore it? When you have consumer debt, your wallet is figuratively on fire – money you earn is already pre-spent on interest expense!
Shopping expert, Martin Lindstrom, offers 3 general tips proven to reduce your impulse purchases:
- Keep your cash in $100 bills because it is more painful to break it than smaller denominations.
- Go through grocery stores with only a tiny basket or even better, no basket. You’ll reduce your spending by 40%.
- Many of your shopping decisions are made subconsciously so be more alert when there are sights, smells, and sounds to distract you (for example, a fair, grocery bakery, or casino.)