Simple Savings Sunday #5 – The Impulse Purchase Savings Plan
Welcome back to Simple Savings Sunday! I hope your holidays have been great and you are ready to start the new year off right. This week’s savings tip is one that you can start implementing now and you will see the power of it by the end of the year. Creating some great savings plans in the beginning of the year is the best way to create an ever-lasting mentality of saving. Make a goal of saving each and every month. You can do it, only if you want to. The tip I have for you this week is dealing with impulse purchases. I consider it a counter to impulse purchases and hopefully you can use it.
The Impulse Purchase Savings Plan
The impulse purchase savings plan has everything to do with impulse buying. When you make an impulse purchase, you are not making any calculated decision. You are just buying because you want to. Most impulse purchases are small, but there can be some bigger ones.
In order to implement this savings plan, you will need to first keep a record of your purchases. If you don’t do well with this, then keep a small notebook with you. When you pay cash, you need to write it down. You need to know of all of your purchases. This is a good practice anyway, so why not start it now!
When you make an impulse purchases, you then will transfer that amount into your savings account. You can do the transfer at the end of the day if it makes it easier. Depending on your bank account, you might have to do the transfers at the end of the week. There are some banks that don’t allow too many transfers. This all depends on where your checking and savings accounts are. I have a few checking and savings accounts. There are at different banks. If I were to do transfers for every impulse purchase, then I would be charged a fee. I don’t pay bank fees, so that is not cool with me. This is where I would just add up all of my impulse purchases every week and then make the transfer.
Recommended: I have and use a savings account with American Express. You can easily sign up and you get a competitive interest rate.
The impulse purchase savings plan is perfect for those that make a lot of impulse purchases. Using this method to save money will show you how much money you are really spending on impulse purchases. So, not only will you get an insight into how much you are spending, but it will also get you to save. Saving money is an important part of managing our finances, but many people don’t do it. It is time to start saving and take back control of our spending habits.
Would you implement a savings plan like this?
I want to do a quick shout-out to those that have mentioned Debt Roundup in the past few weeks. I want to send a big thank you to Life and My Finances, Money and Potatoes, Reach Financial Independence, Monroe on a Budget, Avant Credit, Everybody Love Your Money, The Dime Colorado, Feeling Financial, The Frugal Farmer, The Amateur Financier, and Evolving PF.