Have you ever thought about buying a new and expensive item so much that the urge becomes irresistible? In most of these cases, the money burning a hole in your pocket is just too strong and keeps you from thinking rationally. You look at the price tag and do some quick math to convince yourself that you can afford the item. You know that the money would be better spent elsewhere but inevitably a trip to the store and a ride home with that great new item follows. How can we stop these urges?

This impulse recently hit me hard when I thought about getting a new Playstation 3. I love playing football online against other people and was able to justify the purchase in my head by telling myself that I’m getting both a video game system and a Blu-Ray player all in one. How could I not turn that down? The answer is… I did turn it down and I’m glad I did. Here’s some techniques I use to resist the urge to spend my hard-earned money.

1. Take A Trip To The Mailbox And Pay Some Bills

   Paying your bills can be a really sobering experience. $100 here and there adds up quickly and soon you get the feeling that you’re not as well-off as you once thought. When the urge to spend is overwhelming, direct that motivation towards bills you already have. If you don’t have any current bills, apply the money you would have spent on that new gadget toward your credit card balance.

2. Take A Long Walk Around Your House

   Resisting the urge to buy things is a skill that took me a long time to develop. As a result, my house is littered with items that were just too hard to resist. When the urge to spend hits, take a quick walk around your house and look at those items that you couldn’t resist buying. You’ll likely find books you just had to read (and didn’t), video games you never played, movies you watched only once and so on.

3. For Really Big Purchases, Clean Up Your Old Version

   The urge to buy a new house or car can be one of the toughest to overcome–especially vehicles. From the second you get the idea, you’ll start picturing yourself driving around in style. When this happens, go outside and clean up your old car. Don’t just throw away all of the Slurpee cups but really get into it. Clean the carpets, use some Q-Tips to get all the dirt out of the hard to reach places and wash and wax the exterior. Hopefully when you see how nice your old car can look, you may decide to keep it around for some time. Of course, the same works for your house.

4. Calculate What You Could Have Otherwise

   Visit a site with a handy financial calculator. Plug in the cost you’d pay today for the item in the PV field. Put in the interest rate you’d earn annually if you invested in the stock market (8% is a low and conservative figure). Set the number of periods to the number of years until you retire. Make sure number of payments is 0 and click on the FV button. That large number is what you’d have at retirement if you invested your money in the stock market instead of purchasing the item! For my simple example on the Playstation 3, by spending $500 today I am foregoing $7,350 when I retire!

5. Can You Upgrade Your Existing Item To Avoid Spending?

   If you’ve decided to spend money to get a better version of something you already have, consider upgrading your existing item. This works great with computers as an example. Instead of shelling out a good chunk of money on a new system, take a look at adding some RAM or getting a better video card. If you can delay the new computer purchase for even a year, you’ll get a much better system later for the same amount of money today.

6. When All Else Fails, Phone A Friend

   Find a frugal and rational friend and give them a call. Tell them what you’re thinking about buying and ask them if they think you should go for it. Sometimes, you’ll be too embarrassed to even call so you get your answer there. If you do call, your friend will often be able to explain to you why you shouldn’t purchase that shiny new gadget and you’ll be better off for it. The best part is that there are even times when your friend will tell you to go spend if the item is something that will help you! Either way, run your idea past someone else before you open your wallet.

   What Do You Do? Is Spending A Tough Impulse To Resist?

   I know I’m not the only person that struggles to keep money in my wallet at times. I’d love to hear about experiences you’ve had in your own life where you had to resist the urge to buy something. Are you happy you did resist? Let’s hear about it in the comments section!