I confess - I’m an impulse buyer! Are there any tips on how I can avoid this behaviour and start saving?
Katharine P. emailed us at expert@sweetspot.ca, and RBC financial expert Maria Contreras, answered;
Got a weakness for impulse shopping? Who doesn’t! But a savings plan can take you from instant gratification to long-term gain – which can be a lot more satisfying. When you put your savings goals in writing (ie: a vacation down south next winter), you can stay on track and ignore the impulse!
Here are some tips that can help you start saving:
- Pay yourself first. Get in the habit of setting aside some money from your paycheque to achieve your short-term goals. It’s easier if you think of it as something you have to do, like setting aside money for your mortgage or rent. If you find it hard to commit to a savings regimen, let your bank do it for you. Scheduling automatic transfers from your everyday account to your savings account is a manageable, “set it and forget it” method of paying yourself first.
- Curb your impulses. Just because something is “on sale” doesn’t mean you should buy it. Focus on your goals and resist the urge! Also, be aware of when you’re vulnerable – ignore the impulse to buy things to treat yourself when your work or personal life is stressful.
- Focus on the expenses that you control. Unlike your mortgage or rent, you have control over your variable expenses – lunches, coffee, clothing, music, entertainment, etc. This is the first place to look when you want to save money. Keep track of what you spend in a month to see where your money is going. You may be surprised.
A savings plan is a lot like an exercise regimen. It can feel overwhelming at first, and it’s always easier to pig out than work out, but once you see the benefits you’ll know it’s worth it. You’re strong – you can do it!
Determine how much you need to save or how to get started with RBC’s savings tools at rbc.com/tipsandtools.
Do you have a questions that you need a centsible solution for? Ask our SweetCents experts by commenting below.
Maria Contreras is currently a Product Manager Savings Accounts at RBC Royal Bank. Maria has over 20 years with RBC and has held various roles in Personal Financial Services including 6 years as a Financial Planner. A love of designer hand bags, passed on to her teenage daughter, has helped Maria gain experience with making savings goals and achieving them in style.