We have all been there – a sudden desire for something that we hadn’t planned on buying, and before we know it, the item is in our shopping cart! How does this happen? Why did it happen so quickly? We are all too familiar with this type of purchase, known as an impulse buy.
A word of caution upfront is that it can be a dangerous habit to get into, but don’t fret, this article will explore the psychology behind impulse buying and provide strategies for stopping it.
This post may contain affiliate links; please see our disclaimer for details.
Table of Contents
What is an Impulse Buy?
An impulse buy is an unplanned purchase usually made in response to a strong emotional trigger, such as excitement, happiness, or stress.
This type of buying behavior often results in regret afterward, as the buyer may not have really wanted or needed the item they purchased.
Most often, the money going to that impulse purchase is not part of a planned budget and therefore increases your overall expenses each month – yikes!
Why Do You Keep Impulse Buying?
There are several reasons why people engage in impulse buying even though they want to stop.
For some, it may be a way to cope with negative emotions like sadness or anxiety. Buying something new triggers the release of dopamine, a neurotransmitter that helps to create feelings of pleasure and satisfaction.
Additionally, people may also impulse buy as a way to celebrate or reward themselves. They may use shopping as a way to cope with boredom or relieve stress.
Others may do it for the thrill of making a spontaneous purchase. Being impulsive can be exciting and make people feel more alive. It can also be a way to stand out from the crowd or assert independence.
And still, others may feel like they need to keep up with their friends or peers who are constantly buying new things. Often referred to as “keeping up with the Joneses,” you may feel you are not good enough or do not have enough.
This type of social pressure can cause people to spend money they may not have. Marketers address this tactic as ‘Social Proof.’
Scarcity is another reason people impulse buy. The feeling of scarcity is that you need to buy something new because it may not be available later.
This type of thinking often leads to regretful purchases, as people may buy something they don’t really want or need just because they are afraid it will be gone.
Finally, a lack of delayed gratification can also lead to impulse buying. This is when people have difficulty waiting to get what they want and instead give in to the temptation of buying something immediately.
Whatever the reason, impulse buying can be detrimental to your financial health if you’re not careful.
So remember to be aware of your triggers and to have a plan in place to avoid making impulse purchases.
Why is Impulse Spending so Bad?
For one, it can put a serious dent in your budget.
If you’re not careful, you can easily spend more money than you have, which can lead to debt. Consumer debt can easily snowball into a larger problem; before you know it, you’re in over your head.
Additionally, impulse buying can be a form of compulsive spending, an unhealthy coping mechanism that can lead to financial problems.
Instead of addressing the underlying issues, compulsive spending provides a temporary fix that can ultimately make things worse.
If interested, you can check out this other article I wrote on How to Stop Spending Money | Develop Financial Self-Control.
Impulse spending can also be detrimental to your long-term financial goals. Every dollar counts if you’re trying to save up for a down payment on a house or retirement. Every time you make an impulse purchase, you risk your financial goals.
Another reason impulse spending is bad is that it can often lead to buyer’s remorse. This is when you make a purchase and then immediately regret it.
You may feel guilty, anxious, or even ashamed of your purchase. This can lead to sadness or depression, an unfortunate reality for many people today.
The final reason why impulse spending is so bad is that it can be addictive. Like anything else, the more you do it, the easier it becomes.
Once you start down the path of impulse spending, it can be hard to stop.
How to Stop Impulse Buying?
You might be admitting to yourself that you do occasionally impulse buy. First off, be proud of yourself for being honest and willing to change.
Many marketers know how to take advantage of human nature to get us to spend more money.
They use sneaky techniques like scarcity, social proof, and dopamine triggers to get us to impulse buy.
You can be better equipped to resist sales tactics by simply being aware of them.
Here are a few additional tips to help you stop impulse buying:
1) Identify Your Triggers
Pay attention to the emotions, situations, or people that lead you to make impulse purchases. You’ll become more aware of when you are most likely to spend money impulsively.
Ask yourself the following questions:
- Are you someone that needs social validation?
- Does scarcity cause you to fear missing out?
- Do you tend to make impulse purchases when you’re bored or feeling down?
Once you know your triggers, you can be more mindful of them and take steps to avoid them.
2) Get Ahead of the Temptation
If you know you will be in a situation where you may be tempted to spend money, plan ahead. You could bring a set amount of cash or leave your credit cards at home.
Credit cards are often used for impulse buying because they do not cause the same pain receptors to go off as paying with cash.
You do not physically see the money leaving your hands when you use a credit card.
Unless you have great self-control, maybe stick to cash until you can handle your finances better.
4) Budget for Things that Matter Most
Having a budget will help you become more aware of your spending and make it easier to stick to your financial goals. It’s okay to enjoy yourself and have an expense category for that, but make sure what you buy will add lasting value to your life.
When you have a budget, you can allocate funds for specific purposes and know how much you have available.
I wrote another article sharing How The 50/30/20 Rule Works (With Examples). This is another common budgeting technique to help you better know which categories your mone is landing in.
4) Prepare a List Before Shopping
When you go shopping, bring a list of the items you need. This will help you stay focused on your purchases and avoid buying things you don’t really need.
Stick to the list! Do your best not to add anything unessential.
5) Avoid Sales and Discounts for Wants
Sales and discounts can be tempting but can lead to overspending. If you try to stick to a budget, it’s best to avoid sales and discounts altogether. This means unsubscribing from promotional emails and ignoring in-store sales.
Looking for an easy way to manage subscriptions? Look no further than ROCKET MONEY. We love how they provide you with the tools to track spending, lower bills, and track your net worth!
See how you can easily cancel unwanted subscriptions and better manage your money!
Remember that when you buy a $100 item for 50% off, you do not save $50. You still spent $50. This could harm your finances if you do not need that item.
6) Take a Break
If you feel like you are about to make an impulse purchase, take a step back and give yourself some time to think.
Sometimes, all you need is a few minutes to cool down before you make a decision.
The 30-day rule is a good guideline to follow. If you can wait 30 days to make a purchase, chances are you don’t really need it.
7) Avoid Shopping When Unhappy
If you are feeling sad, angry, or stressed, avoid shopping. These emotions can lead to impulsive spending. If you need to shop for something, wait until you are in a better mind.
Advertisers can also use emotion through ads that trigger feelings of inadequacy, sadness, or insecurity.
8) Avoid Shopping When Tired
There is a reason why infomercials often air late at night. When we are tired, we are more likely to make bad decisions. Shopping when you are exhausted is a recipe for disaster.
If you feel sleepy while shopping, put down your credit card and go home. You will thank yourself in the morning. If you watch a late-night TV infomercial, turn it off and get some rest!
9) Talk with Someone, Set Goals Together
If you are struggling with impulse buying, contact a friend or family member for support.
Ask them what they think of the purchase. It can be beneficial to ask them to play devil’s advocate and argue why you should not make the purchase.
Talking to someone can help you gain perspective and make a more informed decision.
All in All
Making impulse purchases can harm your financial health, but it doesn’t have to be this way. If you are aware of your triggers and have a plan in place, you can avoid making these purchases.
You can stay on track with your financial goals with effort and self-control. And if you have friends or family that impulse buy, share this article with them!
Making impulse purchases is something that we have all done at one point or another. Whether it’s buying that new dress we saw in the store window or picking up a new gadget that we have to have, we’ve all been there.
But there are ways to combat this psychological pull. If you impulse buy, bookmark this article to review if you need a refresher on avoiding future purchases.
Disclaimer:
We hope the information in this article provides valuable insights to every reader but we, the Biesingers, are not financial advisors. When making your personal finance decisions, research multiple sources and/or receive advice from a licensed professional. As always, we wish you the best in your pursuit of financial independence!
