E-commerce sites have made online shopping accessible, easy to navigate and convenient—but it’s incredibly easy to get carried away. If your online shopping habit has your budget spinning out of control, it’s time to put some boundaries in place. Here are four ways to control your online spending while paying attention to your financial health. For personalized financial advisor, please reach out to our team. We’d be pleased to hear from you!
Buy only what you need
Purchases can typically be divided into one of two broad categories: wants and needs. When you’re browsing an e-commerce site, it’s easy to start by looking at needs (for example, a new jacket) and then find yourself adding ‘wants’ to the cart (those shoes that are on sale, a new sweater and other appealing items that find their way onto your screen). We understand the desire to splurge or take advantage of a good deal, but if making those purchases puts you over budget, you’re working against yourself. Before checking out, assess what’s in your cart and remove any unnecessary items. By sticking to your needs, you’re helping yourself stick to your monthly budget. And when you find yourself with a little extra money for discretionary purchases? That’s the time to treat yourself to those wants.
Don’t save your payment info
A lot of your favourite websites allow you to save your payment information within your shopping profile, making it easier to make purchases without getting out your credit card. By removing this critical step, shopping becomes faster, easier and almost unconscious. You may even be surprised when certain packages arrive by mail because you put so little thought into making the purchase! To avoid this and keep your spending in line, opt out of saving your payment information on e-commerce sites. Not only will this slow down your spending by making you think consciously about every purchase, it can help protect your data and reduce your risk of identity theft and fraud.
Set a spending limit
Whether you’re shopping for clothing, gifts or even a grocery delivery, set a clear spending limit and adhere to it. Online shopping actually makes this easier for a lot of people because instead of estimating your total and getting a surprise at the cash register, you can fill an online cart and add/remove items as needed before actually making a purchase. You can also search for online coupons to help reduce your total. Remember: you’re in control, and staying on budget brings you one step closer to achieving your financial goals.
Hit ‘pause’ before purchasing
A lot of online spending is somewhat spontaneous, especially when you’re bored, under stress or killing time or your smartphone. After all, who hasn’t been drawn in by an Instagram ad or promotional email, or found themselves casually shopping from the couch between shows? To avoid mindless overspending, get in the habit of waiting a day or two (or even a week) before completing any purchases. Some websites will allow you to create a wish list or hit “save for later” and if they don’t, simply email yourself the links. You may be surprised how much less you’re compelled to buy something when a bit of time has passed. And if you do still want it, you may have received a discount code in the meantime (brands will often do this as incentive for you to check out after abandoning your cart). This tip is all about timing and self control—we know you can do it!
Thanks for reading, and please remember to contact a Financial Health Coach for personalized guidance and support.