Prevented Compulsive Buying

Shopping is an activity that is often done by most people. Shopping is also a reasonable activities performed by humans, to be unnatural if the activity of shopping is done to excess and do to accomplish that is not useful.

One of the adverse purchasing behavior is Compulsive Buying. Someone said to have compulsive buying if on the face of an unpleasant event he would go shopping to cheer themselves.

For actors compulsive buying, in the form of financial barriers is not a problem because the urge to buy a certain product is very strong. So that they no longer care about the unavailability of funds to cover their shopping habits.

Compulsive buying behavior can be prevented by the existence of personal financial planning to help define the purpose and effect of financial decisions on short-term and long term and adapt to changes that occur in our lives, so it feels more comfortable because everything had been anticipated earlier .

Determine the financial goals

Determine the financial goals with SMART (Specific, Measurable, Achievable, Realistic and Time-Frame). Specific means we should be able to imagine our goals in detail.

Measurable means that can be measured, for example, estimate how much money will be needed for our holiday later.

Meanwhile, achievable means it can be achieved, so as not to be missed pungguk a month, should be tailored to the financial goals of our financial capabilities. Realistic reasonable means our goal, not an illusion that can not be realized in the real world. Time frame means it must have a timeframe to achieve it.

After making a list of financial goals (such as education funds for children, for family insurance, holiday vacation funds, pension funds) and give the serial number on a priority basis financial goals.

Analyzing the financial condition present

By knowing the current financial position and goals to be achieved, then the future financial plans can be made. Therefore the need to analyze the current financial condition so as to obtain a true picture of the current financial condition.

The thing to remember is that in managing finances, we should be able to set aside some income for future use. At least 10%.

Creating a financial plan

In general, the budget is divided into two parts, the revenue and expenditure. After compiling a list of income that can be obtained and given ration expenditure for each expenditure items that have been prepared and do not forget to include savings and investment expenditure.

Do the implementation of financial plans

In carrying out the implementation of a financial plan, a person's personality affect the risk of selection of investment products. For those who do not get along with risk, it is better to choose an investment with a medium risk. But for those who dare take the risk, may choose aggressive investment with a high risk.

Monitor and periodic evaluation

Periodically, perform monitoring and evaluation of return on financial plans that have been implemented. Monitor is useful to ensure that the investments we are going according to plan, and if it does then can take action quickly in order to keep financial goals can be achieved. While the evaluation should be done out of necessity we can only change over the course of time.

People with compulsive buying is more influenced by psychological factors. Therefore, financial planning is not a panacea. Financial planning is more to restore the compulsive buying in real life.