Impulse buying can be a major roadblock to achieving financial wellness. The spontaneous decision to purchase items, often driven by emotions rather than need, can lead to unplanned expenses and disrupt your budget. With the rise of online shopping and constant exposure to advertisements, the temptation to make impulsive purchases is stronger than ever. Taking control of your spending habits, however, is essential for building a secure financial future. In this article, we share some practical strategies to help you learn how to stop impulse buying and take control of your financial health.
What is impulse buying?
Impulse buying is the spontaneous and unplanned decision to purchase something, often driven by emotions rather than actual need. This type of buying is typically triggered by external stimuli, such as advertisements, sales promotions, or the appealing presentation of products, as well as internal factors like stress, boredom, or excitement. Impulse purchases can disrupt personal budgets and lead to financial strain, as they often involve spending money on items that are not necessary or prioritized. Recognizing and controlling impulse buying is essential for maintaining financial health and achieving long-term financial goals.
Why do people impulse buy?
People impulse buy for a variety of reasons, often driven by emotional and psychological factors. Emotions such as stress, boredom, happiness, or the desire for instant gratification can prompt spontaneous purchases. Marketing tactics, like limited-time offers and attractive displays, also play a significant role in triggering impulse buying. Additionally, the ease of online shopping, with features like one-click purchases and targeted ads, makes it easier to buy without much deliberation. Social influences, such as peer pressure or the desire to fit in, can further encourage impulse buying. Ultimately, impulse buying is a way for individuals to fulfill immediate emotional needs, even if it leads to financial strain later.
How to stop impulse buying
It can be difficult to overcome the desire to make an impulse purchase. Thankfully, there are steps you can take to help safeguard your budget and keep control over your spending habits.
Understand your triggers
The first step to stopping impulse buying is understanding what triggers these purchases. Common triggers include emotional states like stress, boredom, or happiness, as well as external factors such as sales promotions and advertising. Identify your personal triggers by keeping a journal of your spending habits and noting the circumstances that lead to these impulse buys. By understanding your triggers, you can work to curb your spending in the future.
Create a budget and stick to it
A well-planned budget is your best defence against impulse buying. Allocate specific amounts for different spending categories and track your expenses regularly. Use budgeting tools or apps to monitor your spending in real time. When you have a clear picture of your finances, it becomes easier to resist unnecessary purchases.
Implement the 72-hour rule
The 72-hour rule is a simple yet effective technique to combat impulse buying. If you feel the urge to make an unplanned purchase, wait 72 hours before buying. This cooling-off period allows you to consider whether the item is truly necessary. Often, the impulse to buy diminishes with time, helping you avoid regretful purchases and facing buyer’s remorse.
Shop with a list
Always go shopping with a list of what you need. Whether you’re grocery shopping or buying clothes, a list keeps you focused on essential items. Stick to your list and avoid browsing aisles or sections that contain items not on your list. This reduces the temptation to make impulsive purchases.
Limit your exposure to temptation
Reducing your exposure to shopping environments can significantly decrease impulse buying. Unsubscribe from promotional emails, avoid browsing online shopping sites, and limit your visits to malls or stores. If you must shop online, remove saved payment information from your accounts to make the purchasing process less convenient and give yourself time to reconsider.
Practice mindful spending
Mindful spending involves being fully aware of why you’re making a purchase and considering its long-term impact on your finances. Before buying, ask yourself questions like: ‘do I really need this item?’, ‘can I afford it without compromising my budget?’, and ‘how will this purchase affect my financial goals?’ By taking a moment to reflect, you can make more deliberate and rational spending decisions.
Find alternatives to shopping
Often, impulse buying is a way to cope with emotions or fill time. Find alternative activities that provide similar satisfaction without costing money. Consider hobbies like reading, exercising, or cooking. Engaging in fulfilling activities can reduce the urge to shop impulsively.
Set yourself financial goals
Having clear financial goals gives you a sense of purpose and direction for your money. Whether it’s saving for a vacation, building an emergency fund, or planning for retirement, your goals can serve as motivation to avoid impulse purchases. Regularly remind yourself of these goals and track your progress to stay focused.
Use cash instead of cards
Using cash for purchases can help control impulse buying. When you pay with cash, you physically see the money leaving your wallet, which can make you more conscious of your spending. Set a weekly cash allowance for discretionary spending and stick to it.
Seek support
If impulse buying is a persistent issue, seek support from friends, family, or a Licensed Insolvency Trustee. Share your goals and challenges with them so they can provide encouragement and accountability. Sometimes, talking through your spending habits with someone else can provide new insights and strategies. If you’re concerned about mounting debt or poor financial management, Licensed Insolvency Trustees are the only professionals legally able to file all forms of debt relief in Canada, and so they’re well placed to advise you on the best next step for your finances.
How to stop impulse buying: FAQs
Here are some of the most commonly asked questions we receive on how to stop impulse buying:
What is the 72 hour rule for shopping?
The 72-hour rule for shopping is a strategy designed to curb impulse buying by encouraging thoughtful decision-making. When you feel the urge to make an unplanned purchase, you wait for 72 hours before buying the item. This cooling-off period gives you time to reflect on whether the purchase is necessary and aligns with your financial goals. During these three days, you can evaluate the item’s importance, compare alternatives, and consider if it fits within your budget. Often, the initial desire to buy fades, helping you avoid unnecessary expenditures and make more deliberate, informed purchasing decisions.
What are the 4 types of impulse buying?
Impulse buying can be categorized into four types: pure, reminder, suggestion, and planned impulse buying:
- Pure impulse buying occurs spontaneously without any prior intention, driven purely by an emotional reaction to seeing the item.
- Reminder impulse buying happens when a shopper sees a product and remembers that they need it, often due to previous experiences or advertising.
- Suggestion impulse buying is influenced by marketing or packaging that convinces the shopper that they need the product, even if they hadn’t considered it before. Planned impulse buying involves a shopper intending to buy certain items but remaining open to purchasing additional products that catch their eye while shopping.
Each type highlights different triggers and motivations behind spontaneous purchasing decisions.
What is the root cause of impulse buying?
The root cause of impulse buying is primarily emotional and psychological, driven by factors that prompt spontaneous purchasing decisions. Emotional triggers such as stress, boredom, or excitement often lead individuals to seek immediate gratification through shopping. Psychological factors, including the desire for instant rewards and the influence of marketing tactics like limited-time offers and appealing advertisements, further fuel impulse buys. Social and environmental cues, such as peer pressure and the ease of online shopping, also make it easier to give in to impulsive urges. Ultimately, impulse buying is a way to satisfy emotional needs and achieve momentary pleasure, even though it may lead to financial strain in the long run.
How to stop impulse buying with ADHD?
Stopping impulse buying with ADHD requires strategies that address the unique challenges associated with the condition, such as impulsivity and distractibility. Creating and sticking to a structured budget can provide clear spending limits, while using cash instead of credit cards can make it more difficult to make spontaneous purchases. Setting up barriers, such as unsubscribing from marketing emails, deleting saved payment information, and avoiding online shopping sites, can reduce temptations. Implementing the 72-hour rule, where you wait a day before making a purchase, can help you reassess the necessity of the item. Engaging in alternative activities to manage stress or boredom, such as exercise or hobbies, can also redirect the urge to shop impulsively. Seeking support from a Licensed Insolvency Trustee can also provide personalized strategies and accountability.
Impulse buying happens; you don’t need to feel bad about every purchase. Yet a reasonable purchase should be something you can buy that doesn’t have negative consequences like increasing your debt or throwing off your budget. Knowing how to stop impulse buying is crucial for achieving financial stability and reaching your long-term financial goals. If you’re struggling with impulse buying, book a free consultation with a Licensed Insolvency Trustee at Spergel for support.