We’ve all been in this situation. Despite our best intentions to be thrift-minded, sometimes it’s just too hard to fight off the urge to make spontaneous purchases, particularly on the internet. Succumbing to such whims of impulse buying can be harmful not only to your immediate finances but also obstruct your journey towards long-term financial objectives. That’s why understanding your spontaneous spending patterns, what triggers them, and the countermeasures, is crucial.
WHAT IS IMPULSE BUYING?
Impulse buying refers to those unpremeditated and instantaneous purchase decisions we make right before the act of purchasing. While most of us would like to believe all our purchases are meticulously planned, the reality begs to differ. According to some research, an average consumer tends to make at least one impulse buy weekly, which can accumulate to an annual expense of $5,400. Depending on their nature, some impulse purchases could even constitute up to 80% of all sales. Online shopping, enhanced by its convenience, swift pace, and the social media elements, further fuels this trend.
THE DOWNSIDE OF IMPULSE BUYING
Impulse buying can adversely impact your savings and overall financial state. For instance, utilizing credit cards for such purchases could make your bill daunting, often leading to paying just the minimum balance which subsequently incurs interest. In worse-case scenarios, missing credit card payments can result in penalties and even dent your credit score, restricting future loan prospects.
Courtesy of such potential pitfalls, it’s paramount to avert impulse spending and we’re here to help!
HOW TO CURB ONLINE IMPULSE SHOPPING
Here are some handy strategies to aid your battle against the urge for impulse buying.
UNSUBSCRIBE FROM RETAIL EMAILS
If emails from retail stores have a magnetic pull you find irresistible, consider unsubscribing from these mailing lists. Even though you’d miss out on some potential good deals, not knowing about the sale at all saves more of your money.
AVOID STORING YOUR CREDIT CARDS ON WEBSITES
Keeping your credit card details stored online eases the temptation of succumbing to the 40% sales. So, it’s wise not to save them. Manually entering credit card info every time you purchase can introduce a mindful moment in the process.
SHOP WITH A PLAN AND BUDGET IN MIND
Having a pre-established budget and shopping list can help rein in unplanned expenditures. This list could include anything from groceries to holiday presents for your far-off relatives. Knowing what you want to buy in advance is beneficial.
DON’T SHOP WHEN BORED
Avoid shopping for leisure during instances when you’re bored or unable to sleep. It can lead to unwarranted spending which can strain your budget. Secure designated hours for online shopping within the week and avoid doing so outside that timeframe.
WAIT 24 HOURS TO COMPLETE A PURCHASE
The next time you’re tempted to buy something, wait 24 hours. If the desire persists after a day, it may be worth purchasing. However, often you’ll find the urge long forgotten. Having a ‘waiting period’ before spending can deter those impulse purchases.
IN SUMMARY
Certainly, online shopping offers a convenient alternative to traditional retail shopping. Yet, left unchecked, it opens doors for unnecessary spending. Being more conscious about your purchasing habits and setting boundaries can assist in fending off debt and its associated consequences. While shopping can bring instant gratification, reflecting on your financial objectives and future can bring perspective on what’s truly important. Opting for that designer pair of jeans or the latest smartphone might mean delaying your much-awaited holiday or impacting your retirement savings.
Therefore, it’s important to question: Has your shopping been under control?
