I love Mike and Ikes.
I’m an addict for these small chewy fruit flavored pieces of candy. Like potato chips it’s nearly impossible for me to stop at just one. One piece, two pieces, three pieces, and before you know it I’ve gone through a large box.
Despite my best efforts, I have been unable to control myself, until recently.
My big breakthrough came after eating a few and then putting the rest of the box in my car. The hassle of going back out to the car to retrieve the box was greater than the temptation of my favorite candy treats.
It sounds silly, but it was extremely effective at solving my sugar gluttony.
So what do Mike and Ikes have to do with your personal finances? It’s simply. Human willpower is weak. That’s why we have so much trouble getting our money straight.
We have the best of intentions until the soft leather handbag, the unexpected night out on the town, or the latest iPad busts our budgets.
Like placing a half eaten box of Mike and Ikes in a car, sometimes it just makes sense to erect barriers to the spending behaviors that get us in trouble.
If you’re susceptible to the seduction of impulse shopping, don’t rely on willpower alone. Erect some barriers. Try this on for size. Learn to leave your credit cards in your glove compartment.
When you come across the “gotta-have” fashion or latest electronic gadget, walking back to your car to retrieve your plastic may be just the barrier you need to rethink your intended purchase.
Perhaps you have a weakness for daily deal websites or online shopping. Erect your barriers by deleting your Living Social and Groupon accounts. If you have a favorite online shopping website, you know that storing your address and credit card information on file makes it just too easy to order. Stop. Erect a barrier by deleting this information. Make it just a little more difficult for yourself to shop online.
Maybe you’re like me and having trouble paying attention to where your money is going. Before you know it, you have more month than money left. Again barriers to spending can help.
Have your discretionary spending money automatically transferred from your main checking account to a bank account for which you don’t possess an ATM or debit card. Whenever you need money for discretionary spending you now have to actually physically go to a bank to retrieve your money. This simple barrier can help you keep better track of your money and make your spending more judicious.
Barriers are not always a bad thing, especially when it comes to your finances. By creating barriers to frivolous or impulsive spending you pave the road to financial success.
BMWK, what are some of the barriers you could erect that would help you spend money more wisely?