Tuesday, February 21, 2012

SYMPTOM:

$5.00 bucks always burning a hole in my pocket.

PRESCRIPTION:

Spending that $5 bucks wont put you over the edge, its making that $5 bucks available  to yourself that makes you the shopaholic. Yes, even spending 5 bucks makes you a shopaholic. A shopaholic is more than someone who spends a lot of money. Its an individual who spends beyond their means and is never satisfied. That's why the need to spend every last penny never stops. You need to "nip this in the bud" before you dig a hole you can't get out of.
You need to stop enabling yourself and put that money where you can't touch it. I recommend automatic deposits to a registered savings account such as a GIC or TFSA. Set up automatic bill payments too, this way your bad spending doesn't land you in hot water with creditors. By having money direct-deposited to a registered account you can't just go to the bank and withdraw funds. In most cases its usually 24 hours before you see the money in your account after a withdrawl request.
I find that this is the perfect amount of time, since most 5 dollar purchases are usually impulse buys. In 24 hours you'll realize you probably didn't want those M&M's that bad anyway.
If saving money automatically sounds like a challenge, then try something a little more low-tech. 5 bucks isn't a lot of money but during the week it adds up Monday to Friday that's 20 bucks. If you work in an office maybe you and a couple of co-workers should contribute equal amounts weekly to a petty cash fund. At the end of the week treat yourselves to a nice lunch, go to a nice restaurant or treat yourselves to frappuccinos! Either way it'll make you feel better, you will remember the experience of being out and about more than an impulse buy at the checkout line.