Spending too much money is a complaint you hear from your spouse or partner?
How surprised are you to find that you charged more than you thought on your credit card each month?
Is your closet filled with more shoes and clothes than you can possibly wear?
Have you purchased every new gadget before it collects dust on a retailer’s shelf?
Have you ever purchased something you weren’t even aware you wanted until you saw it on display?
If you answered “yes” to any two of the above questions, you are an impulse spender who indulges in retail therapy.
We’ve all been there aren’t we?: you’re strolling through the mall or browsing your favourite online store, and suddenly something catches your eye.
Before you know it, you’re pulling out your wallet and making an impulse purchase.
Impulsive buying can be a fun and exciting experience at the moment, but it can also lead to financial stress and regret.
However, don’t despair, there are ways to avoid impulsive buying.
In this article, we will discuss the reasons behind impulsive buying, the extent of the problem through financial data, and tips from experts on how to avoid this behaviour as possible.
The experience of being an impulsive buyer:
Being an impulsive buyer can be a thrilling and addictive experience.
It’s easy to get caught up in the excitement of a sale or promotion, and before you know it, you’re filling your cart with things you don’t need or even want.
The feeling of instant gratification can be hard to resist, and the thrill of the purchase can be all-consuming.
However, high impulse buying is often followed by feelings of guilt, shame, and regret.
You might find yourself wondering why you made the purchase, or worrying about how you’re going to pay for it later.
Reasons for impulsive buying:
Impulsive buying can be caused by a variety of factors, including emotional triggers, social pressure, lack of planning, and even brain chemistry.
Emotional Triggers:
Shopping can provide a temporary escape from emotions such as stress, boredom, sadness, or even happiness.
This is often referred to as “retail therapy”.
According to Dr. April Benson, a psychologist and author of To Buy or Not to Buy: Why We Overshop and How to Stop,
“Shopping is not a long-term solution to emotional problems. It’s a short-term escape that can quickly lead to financial problems and regrets.“
Social Pressure:
Social media and advertising also play a role in impulsive buying.
The pressure to keep up with friends and celebrities on social media can create a sense of FOMO (fear of missing out) and make people feel like they need to buy the latest products.
Advertisements especially targeted ads, can also make us feel like we need a particular product or that it’s a limited-time offer.
Lack of Planning:
When people go shopping without a clear plan or budget, they are more likely to make impulsive purchases.
This is because they are not considering their financial situation and the long-term impact of their purchases.
Brain Chemistry:
Research has shown that impulsive buying can be linked to changes in brain chemistry.
Impulsive behaviour has been linked to lower levels of serotonin, a chemical in the brain that regulates mood, and higher levels of dopamine, which is associated with pleasure and reward.
Shopping can be a temporary escape from emotions such as stress, boredom, or even happiness.
According to a study by Credit Karma, over 60% of Americans reported making an impulse purchase in the last three months, with an average spend of $142.
Another reason for impulsive buying that may not be immediately obvious is the effect of ambient scent on consumer behaviour.
Research has shown that certain scents, such as vanilla or lavender, can have a calming effect on shoppers, making them more likely to spend money impulsively.
Similarly, other scents, such as citrus or peppermint, can have an energizing effect that may increase impulse buying.
Retailers have been known to use scents strategically in their stores to influence consumer behaviour and encourage more sales.
Financial Data: The Extent of the Problem
Impulsive buying can have a major impact on personal finances, and the following data highlights the extent of this problem:
According to a recent survey, Americans spent an average of $659 on impulse purchases in 2020.
A survey by CreditCards.com found that 69% of Americans have made an impulsive purchase, with the average impulsive purchase costing $158.
Impulsive buying can lead to overspending and debt.
According to a study by the National Endowment for Financial Education, overspending is the second most common cause of household debt, after unexpected expenses.
The study found that:
“36% of Americans say they have taken on debt due to impulsive shopping, and 20% of those surveyed reported they had gone into debt to purchase a luxury item.“
This data highlights the need to take control of your finances and avoid impulsive buying.
7 Expert tips on how to stop being an impulsive buyer:
There are several tips from experts that can help you avoid impulsive buying.
By following these tips, you can take control of your finances and live a happier life.
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Make a list:
Before you go shopping, make a list of what you need and stick to it.
Having a clear plan will help you avoid impulse purchases and stay within your budget.
This tip is emphasized by Lynnette Khalfani-Cox, a personal finance expert, and author of “Zero Debt: The Ultimate Guide to Financial Freedom.”
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Set a budget and stick to it:
Setting a budget can help you avoid impulsive buying because it gives you a clear idea of how much money you have available to spend.
It can also help you prioritize your spending on the things that matter most to you.
To set a budget, start by looking at your income and expenses and deciding how much you can afford to spend on non-essentials.
It’s important to be realistic when setting your budget.
Don’t set a budget that is too restrictive, or you may find it difficult to stick to.
At the same time, don’t set a budget that is too generous, or you may be tempted to overspend.
Once you have set your budget, make sure to track your spending to ensure you’re staying on track.
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Limit social media and ad exposure:
Social media and advertising can be major triggers for impulsive buying.
Consider limiting your exposure by taking breaks from social media or using ad-blocking software.
As a certified financial planner and author, Tom Corley, suggests,
“Delete the shopping apps from your phone and unsubscribe from all store emails.“
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Avoid shopping when emotional:
If you’re feeling stressed, sad, or anxious, it’s best to avoid shopping.
Wait until you’re in a calm state of mind before making any purchases.
As a financial advisor and author, Erin Lowry advises,
“If you’re feeling really stressed or sad, that is not the time to make a decision with your wallet.”
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Don’t shop on impulse:
If you see something you like, wait a day or two before making a purchase.
This will give you time to think about whether you really need it and whether it fits within your budget.
As a financial expert and author, Farnoosh Torabi, recommends,
“Don’t make decisions on the spot. Give yourself a 24-hour rule, where you have to wait at least a day before making a purchase.”
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Keep track of your spending:
By keeping track of your spending, you can see where your money is going and identify any impulse purchases.
This can help you make more informed decisions about your spending in the future.
Budgeting apps and tools can be helpful in this regard.
As a personal finance expert, Dave Ramsey, advises,
“You need to tell your money where to go instead of wondering where it went.“
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Be mindful of your triggers:
Everyone has different triggers that can lead to impulsive buying.
It could be a specific store, website, or social media platform.
It could also be a particular emotion, such as stress, boredom, or even happiness.
To avoid impulsive buying, it’s important to be mindful of your triggers and take steps to avoid them.
If you know that a particular store or website triggers your impulsive buying behaviour, try to avoid it as much as possible.
If you find that you’re more likely to make impulsive purchases when you’re feeling stressed or anxious, try to find alternative ways to cope with these emotions, such as exercise or meditation.
Finding alternatives to shopping, such as going for a walk, reading a book, or calling a friend, can also help you cope with stress and other emotions without spending money.
In conclusion, impulsive buying can have a significant impact on your finances and personal life.
It can lead to debt, financial distress, and even relationship problems.
However, by understanding the reasons behind impulsive buying and implementing strategies to avoid it, you can take control of your financial future.
The reasons for impulsive buying are numerous and varied, including emotional triggers, social pressure, lack of planning, and brain chemistry.
Shopping can be a temporary escape from emotions such as stress, boredom, or even happiness.
Social media and advertising can create a sense of FOMO (fear of missing out), and brain chemistry plays a role as well.
To avoid impulsive buying, experts recommend making a list before shopping, avoiding shopping when emotional, limiting social media and ad exposure, waiting before making purchases, keeping track of spending, finding alternatives, seeking support, setting a budget, and being mindful of triggers.
Remember, it’s not about depriving yourself of things you want or need, but rather about being mindful of your spending and making informed decisions about your purchases.
By doing so, you can achieve your financial goals and live a happier, healthier life.
As financial expert Dave Ramsey said,
“We buy things we don’t need with money we don’t have to impress people we don’t like.“
By avoiding impulse buying and focusing on your financial goals, you can break free from this cycle.
