IS IMPULSE SPENDING IMPACTING YOUR LIFE?
You can hear the audio version of this discussion on my podcast at Lola’s Frugal Life Podcast, on Apple Podcast, and many other platforms!
WHAT IS IMPULSE SPENDING?
How many times have you gone into Target to buy one or two items and come out with many more items than those things you went in for? Do you ever think about the fact that had you not walked in the store that day you would not have spent that money on items that you had no intention of buying?
Have you ever been listening to a podcast or watching youtube or some other programming and heard some type of product talked about? Then you go rush to order it because you need to have this item and don’t want to forget about it. Have you ever thought that if you think you might forget about it if you don’t order it right away, maybe you really don’t need it? If it was something you really needed, you would naturally be reminded often each time that item would have been of use to you.
IMPACT OF IMPULSE SPENDING
Impulse spending is when we make a purchase on a whim often without giving consideration to how it will impact our financial situation. In order to help us reach the financial goals we have set for ourselves, it is important to be aware of impulse spending and take steps to prevent it. Impulse spending impacts financial goals and can cause clutter in our home. Even if we are good with getting rid of clutter on a regular basis, it still takes time away from other things we could be doing. Who wants to take more time to declutter than you have to because you decided to pick up some extra items that the store than you really needed? Today I am going to share some tips on how you can reduce impulse spending so that it does not have a negative impact on your finances and your home.
GIVE YOURSELF A WAITING PERIOD
When you have the urge to buy something put it on a list, or add it to the shopping cart and save for later (if website allows). I have heard of the 24 hour rule, some people do 7 days, and I have also heard of the 30 day list. There is no right way to do it. It’s just about the idea of giving yourself time to think about making a purchase. Often after you give it some time, the excitement will wear off and you will find you might not even want the item anymore.
If you like to shop on amazon you can add the item to your cart and then move it to “save for later”. I currently have 60 items in my amazon “saved for later”. Imagine if I had purchased all of those things? I couldn’t even tell you what is in there. And I bet if I looked through them I wouldn’t even remember why I wanted the things!
MAKE SURE YOU HAVE A BUDGET
When you keep a budget and you really want to stick to it you are more motivated to say no to unplanned purchases. It is also important to add some miscellaneous dollars for impulse items or things that just come up that you didn’t plan on. By having some money budgeted you can make sure that you do not feel super restricted by your budget. Some impulse spending is OK, but we just want to keep an eye on it and have a dollar limit that we are ok with. Having a budget can also make you think a little bit more about whether purchasing an item is worth using up your miscellaneous dollars on that purchase.
TRY NOT TO BE TEMPTED BY SALES
Stores design sales to make you feel like you are missing out if you don’t take advantage of this great offer! One of the most important things that I have learned is that you don’t save money by spending money. If you needed something and it’s on sale, then great, get it. But, if you were not planning to buy something and you end up buying it, you didn’t save. When you buy something you didn’t intend to buy and didn’t really need you are spending, not saving!
CREATE FINANCIAL GOALS THAT ARE EXCITING TO YOU
When you have goals that you really want to achieve, you can use them as a tool to help you not make poor spending decisions. Talk about and review your goals often. When you keep your goals in your mind frequently you will be more likely to consider the impact of an impulse spend on those goals. When you spend $20 on some random thing you saw at target that’s $20 less going towards your goals. If the goals you have created a really meaningful to you it will be easier to make mindful spending decisions.
REMIND YOURSELF HOW IT FEELS WHEN YOU MAKE A PLANNED PURCHASE
When you see something that you really love but is not in the budget, see what you can do to add it to your budget for the future. When you budget and save up for something there is a such a good feeling about making the purchase. You won’t have any regret that you might get when after making some unplanned purchases that threw you over budget. Plus, it’s fun to save for something that you are really excited about getting. Anticipation is part of the fun in life, so by saving up for things, you can extend the joy you get out of that purchase.
UNSUBSCRIBE FROM PROMOTIONAL EMAILS
Promotional emails are written in a way to make you think you need something that you had no idea you needed just prior to reading the email. They also try to make you feel that if you don’t take advantage of this deal right now, you are going to miss out. If you are unsuccessful at unsubscribing, as I have been. Try to make it a habit to automatically delete the email without reading it. Don’t worry, there will always be another sale on whatever it is they are promoting. Try to remind yourself that you are not saving money by purchasing something that you had no intention of buying, that is spending, not saving!
DON’T GO SHOPPING JUST TO “GO SHOPPING”
When you go to the store – make sure it is for a purpose. Make it a challenge to buy just what you went in for and get out of there! If you struggle with emotional spending, keep yourself out of the stores if there is really no reason for you to be there. Limit the number of times you go to the store. This includes grocery shopping. The more often you are in the store, the more opportunities you have to make impulse purchases. Try to find something else to do with time that you might have previously gone shopping so that you can resist the temptation of making additional purchases
Thanks so much for checking in! If you would like to hear the podcast version of this topic to check out Lola’s Frugal Life Podcast! Also, be sure to check out my other blog posts on this site!
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