Many of us have given in to the temptation to buy something we don’t need.
Perhaps you were passively scrolling through your social media feed when a sponsored post popped up, showcasing the latest tech gadget with rave reviews. Unable to resist, you clicked the “buy” button for fear of missing out, only to find that the excitement faded shortly after, leaving you with regrets and a hole in your bank account.
What is an impulse purchase?
Impulse purchases are unplanned purchases made on impulse, without considering long-term goals and needs. From flashy tech items to trendy fashion items, impulse purchases can quickly drain your bank account and hurt your long-term financial goals.
The temptation is even greater on social media: 48% of social media users have made an impulse purchase, according to Bankrate’s social media survey. And 68% of them said they’ve regretted an impulse purchase made on social media.
In a climate of high inflation, impulse purchases can have an even more detrimental effect on our savings than usual. However, there are ways to curb impulse spending habits and focus on longer-term financial goals.
Strategies to Stop Impulse Buying
1. Think before you buy
Getting into the habit of slowing down and thinking before making an impulse purchase can save you a lot of money.
Some questions you should ask yourself:
- Is this item a want or a need?
- Can I afford it without sacrificing something more important?
- Will this bring long-term value and satisfaction?
2. Stick to a shopping list
Before you head to the store or surf the Internet, make a shopping list of the items you actually need. A shopping list gives you a clear plan for your purchases, eliminates ambiguity, and reduces the risk of impulse buying. It also reminds you of your goals and priorities.
You can try using a shopping list app that can help you organize your shopping lists and even share them with friends or family members to streamline your shopping process.
3. Apply the 24-hour rule
When you come across a product that you are tempted to buy immediately, give yourself a 24-hour cooling-off period. Why? The purpose of the 24-hour rule is to create a space between the initial impulse and the actual purchase. Often, the initial excitement and compulsion to buy can fade after this time. By waiting, you give yourself the opportunity to reconsider the purchase in a more neutral frame of mind.
During these 24 hours, you can take the time to research the item’s features, read reviews, compare prices, and determine if it fits your needs and budget.
4. Unfollow accounts that fuel your temptation
The constant stream of captivating images, flashy ads, and influencers promoting products on social media can tempt us to click the “Buy Now” button without thinking. With a simple swipe or scroll, we’re exposed to an endless array of products and services, each promising to improve our lives in some way. But that promise can be deceptive, and succumbing to temptation can lead to financial stress and instability.
To resist the siren call of impulse purchases, there’s one important step you can take: carefully curate your social media feed to avoid seeing these items in the first place. Unfollow brands and promoters that constantly tempt you. You can even delete certain shopping apps from your phone or set time limits on the ones that appeal to you the most. A few tweaks to your social media feed can even reduce constant exposure to purchase triggers and help you save money.
5. Prioritize clear financial goals for long-term satisfaction
Imagine your ideal financial future and set clear goals. Instead of simply saying you want to save money, set a specific goal, such as saving $5,000 in the next year. Once you have your goals defined, you can incorporate them into your budget to align your spending with what you want to achieve in the long term.
It’s easy to give in to temporary pleasures when we’re constantly plagued by shopping temptations, but reminding yourself of your financial goals and learning to wait can help you find long-term fulfillment. As you take small steps toward your goals, reward yourself (within reason) to maintain a positive mindset and reinforce your commitment to the bigger goals.
6. Pay in cash
Take the time to budget exactly how much you can spend on your purchases and withdraw cash to pay for them. By using cash, you avoid overspending and impulse purchases.
If you’re used to paying with a card to earn credit points or cashback rewards, you’ll lose those benefits if you pay with cash. But once you start being more disciplined about paying with cash, you may be able to return to using your credit card responsibly.
Be alert for signs of impulsive spending habits
The excitement of an impulse purchase may not appear immediately, but there are some signs to watch for, including:
- You spend beyond your means or more than expected when making your purchase.
- You hide purchases from family members or a partner.
- You are unable to pay your bills or save as much as you would like due to high expenses elsewhere.
- You feel guilty or regret spending.
In conclusion
By setting clear financial goals and prioritizing your long-term needs over short-term impulse purchases, you can regain control of your finances and make decisions that support your future aspirations. Keep track of the savings you’ve made by reducing your impulse purchases: these savings can be put into a dedicated savings fund or invested in a high-yield certificate of deposit (CD) to earn money back in the form of interest.
Key takeaways
- Impulse buying means buying items you didn’t plan to buy.
- Impulse purchases can lead to more spending, which can lead to decreased savings and even increased debt.
- There are steps you can take to reduce impulse buying, such as prioritizing financial goals and sticking to a shopping list.
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