7 Impulsive Financial Decisions to Avoid

Remember the last time you waited in line to pay for anything at a store and you "conveniently" decided to purchase something you hadn't planned to buy?

Each of us has a different personality type when spending money but the example above is a kind of impulsive purchasing that, if allowed to continue, may have a detrimental impact on our ability to save and maintain a sustainable financial situation.

When you live in a home and lot in the Philippines like Lumina Homes, which is close to almost everything, the temptation to go shopping might be hard to ignore. This type of consumer behaviour and unplanned purchase is particularly prevalent during the Christmas season, when everything seems like a bargain to boost sales.

Don't give up if you've already made a few of them and are suffering the results; after all, most of us are guilty of making at least one or two impulsive purchases. However, if you're concerned about how to avoid a similar situation in the future, you need not fret; we're here to provide guidance.

7 Budgeting Mistakes and Impulsive Buying Decision to Avoid

The primary action to take in preventing these impulsive financial decisions is to be aware and take note of them, most especially the online-offline comparative of impulse buying. Here are some of the most common budgeting mistakes you must pay attention to:

1. Neglecting to shop for the best loan rates

It's natural to jump at the first loan offer you come across if you're currently strapped for cash and need a sudden infusion of funds. The fees, fines, and other terms and conditions, however, are buried in the tiny print that you'll ultimately overlook. It's possible that this hasty choice will end up costing you dearly.

The encouraging news is that it's never been simpler to look around for competitive financial services and evaluate their costs and features side by side. You may easily compare various personal loans and other financial products online with the help of websites available on the internet.

2. Excessive use of your credit card

If you need money quickly, a cash advance on your credit card might be the answer, especially when doing online shopping. However, before you come up with this purchase decision, you should know that the borrowed funds do not belong to you. Always give your credit card use some serious consideration. If you want to use it, there must be sufficient funds in your account to pay any purchases., since this is not a cash card. Don't use your credit card for such on-the-spot buys if you don't have the funds to cover the whole cost.

Learn to postpone satisfaction and you'll be better able to control your impulsive behavior. Rather of giving in to the temptation of an unplanned shopping trip, why not appreciate what you have and live in the moment instead? You won't only save money; you'll learn to value what you already have.

3. Distressed about the future

Worrying about the future is a major contributor to our propensity for making impulse purchases. While this is fair given the current state of the peso, it shouldn't make you feel like there's nothing to look forward to.

Instead of worrying about this temporary financial setback, prioritize the positives. Stay as close as possible to your set budget, figure out how to control your impulse buying behavior, and try not to stress yourself.

4. Quitting amid financial difficulty

The Philippine economy has developed significantly, but with inflation at its highest, you need to arrange your financial backup before you quit your work.

If you aren't already employed elsewhere when you hand in your resignation, it's a good idea to save up at least six months' worth of income beforehand. This is simply a guideline; you should also consider your actual living costs and any outstanding bills you may have. The sum of all these expenses should also be modified consequently.

5. Impulse buying behaviour

It's natural for Filipinos to feel pessimistic about the future as inflation ushers in an era of uncertainty. When used to rationalize unnecessary spending, particularly in physical stores than online purchases, however, it becomes inappropriate. Although not all unplanned purchases can be considered impulse purchases.

Of course, this is not the time to become one of the impulsive buyers and blow all your cash on frivolous things like weekly fast food delivery services. If you're looking to save costs at the grocery store, and yet eat well, you need to roll up your sleeves and make your own meals as well as avoid any unplanned purchases. Make sure to create a shopping list to remind you about your purchase intention.

6. Lack of capital when starting businesses

While it's true that establishing a company requires a certain amount of trust, you shouldn't let your finances reflect that. Even if starting a company has always been your ambition, you shouldn't invest all you have in a single project or business.

Just keep doing your regular job for the time being, and don't rush things when it comes to making money. You must make contingency preparations in case your business does not succeed in making a profit.

7. Completely cashing out investments and savings

You can't merely put your assets and money on hold because of inflation. Don't let the idea that you need the money for necessities or, worse, that you want to squander the money on impulse purchase force you to throw away all you've worked for over the years to build.

It's possible that unexpected expenses may necessitate using the available cash. However, as long as they are not occurring, you should keep saving and looking into other investing opportunities. Until the financial markets declare victory, nothing has been accomplished.

Secure Your Personal Finance Through A Home Investment

If you realize the value of getting back up after a financial setback, it's OK to make mistakes and fall down. It's always possible to pick yourself up and try again. Think carefully about your impulsive purchases and use what you've learned in your future spending habits.

But if you want to foolproof your future, it's better to make some wise spending by having an affordable house and lot for sale that you can convert into a profitable investment from Lumina Homes.

Our affordable house and lot that is located to over 50 projects all over the country are built in a strategic location, giving it a strong potential for a return on investment.

Located in key cities and municipalities, these ideal home packages of townhouses, duplexes, and single firewall units are close to travel attractions, commercial hubs, transport terminals, groceries and shopping malls, as well as major infrastructures-providing the best convenience and movability to our homeowners and future residents.

Start your profitable journey now in real estate investment and get your own best deal house and lot package from Lumina Homes!