(L25) Budgeting

How does making a budget reduce impulse shopping?

Making a budget reduces impulse shopping and impulse buys by allowing you to exercise self-restraint in advance. Having a plan with your money causes you to be as thrifty as possible in the moment, and price compare before purchasing an item. Planning ahead also allows time to look both online and in multiple stores; this decision is a trade off between time and money that each person must make for themselves depending on how they value each commodity. Another reason budgeting is helpful for a healthy wallet is that it makes it very difficult to spend money that you do not have, which is something that many people struggle with. It is easy to swipe now, and think about what the price is later; however this can lead to serious debt and lifetime troubles.

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