One of the reasons why many people wind up spending more than they make is that they do not keep track of their expenditures, especially the small purchases. But these seemingly insignificant purchases add up to big dollars. Many of them are impulse purchases which, if one is not disciplined, will leave you susceptible to retailers efforts to put these impulse items in front of you at the check-out counter.
Research shows that more than half of all grocery purchases are unplanned, impulse purchases. That's why people who compile a grocery list and stick to it will spend far less than those who go to a grocery store without a list. 'Spur of the moment' purchases tend to be more expensive and is based on what someone wants at that time, rather than what someone really needs (that is on their grocery list).
Last year, a Toronto Star columnist decided to find out why she couldn't save any money. She tracked every single transaction and expenditure for a month and then reviewed where the seepage from her purse occurred. She was shocked to find that every time she went to the drug store, she would walk out with a basket full of small purchases, e.g. a bottle of nail polish,some bath salts, a magazine etc. These added up to well over $200 per month, or almost $2,500 per year. Women also tend to go on fashion shopping trips, often with nothing specific in mind.
Men are not immune to this, as they are extremely susceptible to electronics, hardware and sports stores. Even worse is that men have been known to purchase cars on an impulse! Research shows that almost half of hardware store purchases are spur of the moment purchases.
Despite the tough economic times, there are so many sales and promotions that present temptations to potentially overspend. So as you go and do your shopping, prepare a list and stick to it. It'll save you dollars when you need it most.
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