It has happened to the best of us. We are shopping for some specific items or even window shopping. By the time we get home, we purchased more items than we intended and spent more money than we budgeted.

Although impulse buying can be fun, and may seem gratifying at the time, and often can be seemingly innocent, such as when you add a candy bar – that wasn’t on your shopping list – whilst in the checkout line. But if it happens too often, or wreaks havoc with your daily, weekly or monthly budget, or you find yourself regretting your purchases and if it is an option, trying to return them, impulse buying may be something that you need to manage.

 

Why Do We Impulse Buy?

Much of the literature suggests that impulse buying is an emotional response, but it can also be triggered by boredom, stress, anxiety, low self-esteem and loneliness. Impulse shopping tends to release endorphins and dopamine in the brain creating pleasure sensations, which is why it can be addictive, and if unmanaged can wreak havoc with your finances.

Further, it may not come as a surprise, based on the abovementioned triggers, that according to PR Newswire, two out of three impulse buys happen in bed on a phone, and this increased during the COVID-19 pandemic.

 

How to Avoid Impulse Buying?

As said previously, impulse buying can be quite innocent, but it can be a slippery slope, because of its emotional source, and the fact that it (temporarily) gives you pleasure. However, if you believe that you do not have as much control of spending habits of your spending habits as you would like, here are some strategies to help you get on track.

Become more aware of your spending habits.  Often, you might not realise that you have made, or are currently making, an impulse purchase. So, the very first order of business is to become more aware of your spending habits, whether you are overspending, how frequently you impulse buy and under what circumstances.

Make a budget and stick to it.  Create a budget and detailed shopping list and stick to it when you go shopping. Often, we focus on the basics – eggs, meat, milk, vegetables, fruit, toilet paper – but it may be snacks or some exotic condiment that trips us up. Making a detailed shopping list will you help be accountable and intentional with your spending, and not deviate to buy items that you had not included on the list.

Budget some fun money. In your monthly or weekly budget, include a line item for fun or discretionary spending, which should you reasonable and affordable within the limits of your overall budget. This fun money can be used for impulse buys, which essentially becomes a reward or treat. However, when the weekly or monthly allocation is finished, you should not buy it.

Give yourself a time-out. When something catches your eye and you are eager to add it to your cart, wait. Step back and give yourself a day or more to consider whether you really need that item. When you are no longer caught up in the moment and can examine the situation with a fresh perspective, you may find that you don’t need that item.

Use cash whenever possible or practicable. When you use credit cards, it is easier to overspend. Also, if you include the items that you are supposed to be purchasing with your fun money, you are likely to overspend, generally, and spend more than you have allocated for your personal discretionary spending. Instead, use cash whenever practicable and possible, especially for your fun money, as you will be able to monitor your spending more directly.

Do not shop when you are upset or stressed. Noting that impulse buying tends to be emotionally triggered, it is best not to shop when you are feeling stressed, upset, anxious, etc., as you are liable to overspend and buy items you don’t need. You may thus need to replace the need to window shop or browse online with another activity, such as exercising, journaling, or speaking with friends, to avoid retail therapy at all costs.

 

 

In summary, managing impulse buying starts with taking better control of your money, which requires awareness and action. Know your triggers so that you can avoid or resist the temptation to spend at those times. However, it may also mean that you will need to introduce new behaviours to replace the thrill of the spend.

 

Image: Vlad Vasnetsov (Unsplash)