Are You an Impulse Buyer? Here’s How to Stop.
Impulse purchases are non-budgeted buys that are usually for fun. While the occasional impulse purchase is not a bad thing (as long as it does not severely impact your budget or require a credit card) when it’s done with regularity, it can have very negative financial consequences.
Making unplanned purchases multiple times each month can cause you to have problems meeting your financial budgeting goals or savings goals; this can also cause issues in meeting your financial obligations, such as credit card repayment or other monthly bills. Are you an impulse buyer? Here’s how to stop.
Stop Emotionally Shopping
Studies have shown that a large portion of impulse shopping is made resulting from a shopper’s emotional state at the time. Being conscious of how you are feeling at the time you want to make an unplanned purchase can help save you from spending money unnecessarily. Do you find that you tend to impulse shop when you’re feeling down, bored, or angry? When you’re mindful of these feelings and how they can affect your financial decisions, you may find it easier to make better choices in the future.
Outline a Very Clear Budget
It can be much easier to conduct harmful impulse shopping when you don’t have a clear budget set for yourself and your family. When you don’t have a budget outlined, it’s difficult to know precisely how much money you may be spending on unplanned purchase and how much this may be affecting your financial bottom line. Take the time to write out a realistic monthly budget; be sure to include the following categories:
- Rent/Mortgage
- Utilities
- Groceries
- Car Payments and Gas
- Debt Repayment
- Savings contributions
- Any other regular monthly bills
Finally, be sure to include a category for fun spending! If you allow yourself some room in your budget to spend on things you enjoy, you’ll be a lot less likely to make impulse purchases that you can’t afford. Be careful to make sure this spending allotment coincides directly with your budget, however, and how much you have free to spend; this area definitely should not be the most substantial portion of your spending in any capacity.
Turn Your Impulse Buy into a Calculated Decision
The next time you find yourself tempted to make an unplanned purchase, insist on waiting 24 hours before doing so. Often, when giving yourself more time to contemplate an additional purchase, you’ll end up not making it. Giving yourself this restriction can not only save you money and potential buyer’s remorse, but it can also be an empowering feeling when you wait to make a buying decision.
Bring Only Enough Cash and Don’t Use Credit
If you conduct your shopping with a pre-made list or knowledge of what you need and only bring enough funds to cover your pre-planned purchases, then you’ll leave little room for buying anything extra. Make it a rule never to use a credit card for an impulse purchase; if you can’t afford to purchase it using cash, don’t buy it. The last thing you want to do is finance a non-essential purchase.
Don’t Get Sucked into the Sales
Shoppers often make impulse purchases based on sales offered, especially if it’s from a brand they like or on a hobby or interest of theirs. Eliminate the “I only have this one chance to save money” way of thinking when you see a sale, because the chances are that’s not true. Also, while seeing sales in-store can be unavoidable, you should try to unsubscribe to sales emails for which you might have previously signed up. When your inbox is constantly being inundated with advertisements, it can be hard to pass up making an impulse purchase.