We’ve all been there: That moment when you are on a website or in a store, and you see that item that just speaks to your soul. Do you need it? No. Can you get a better deal on it? Absolutely. Do you want it now? Most definitely.
eCommerce websites and retail shops are designed to get you to buy that item now, regardless of whether or not you need it. As a shopper who needs to live within your means, you must recognize these purchasing patterns and resist the urge to buy those goods. With knowledge and practice, you can resist the strongest temptations.
Recognizing triggers for impulse purchases
If you ask yourself the question “Why do you make impulse purchases?” and the answer may be more complicated than you think.
According to research, a variety of factors can influence impulse purchasing. These include:
- Emotions and mood: Strong positive or negative emotions can increase impulse buying.
- Personality factors: Some traits like low self-control mean more impulse buying.
- Cognitive processes, such as the scarcity impulse.
Other situational factors—like displays or pop-up ads that are targeted directly to you—can also enhance impulse buys and undermine your budgeting tactics.
Your challenge is recognizing your specific triggers and figuring out ways to mitigate them. A failure to do this will, in the long run, hurt your credit score and damage your ability to live the financial life you want.
Practicing mindfulness and delayed gratification
Impulse buying is all about needing something now. Your challenge is to force yourself to be more mindful about your shopping patterns. Before running to the cash register or clicking “Buy now,” ask yourself a few questions:
- Why do I want this?
- Do I need this?
- If I really need this, can I get a better deal elsewhere?
- Did I think I needed this before I saw this?
Delayed gratification—the process of turning off our immediate urges and concentrating on the future—can also help reduce impulse buys. Challenge yourself: You may want to buy something now, and the internet and credit cards make it easier. Instead, can you wait thirty seconds and then ask if you want to make that purchase? Even this brief delay may slow down the “hot” part of your brain and force your higher impulses to kick in, helping you make better budgeting decisions.
Establishing accountability partners for financial decisions
Sometimes, working with others is better to ensure you make better financial decisions. Who this other person is ultimately depends on you. Often, a spouse or partner works, but be careful: Financial and budgeting decisions are among the top sources of conflict in any marriage.
Rather than approach working with someone on your fiscal decisions as a source of conflict, consider doing so as a source of personal improvement. This person’s job is to discuss your financial decisions, ask probing questions, and make sure you consider how you spend your money. You can use this accountability partner to give financial advice, celebrate wins, and ensure you will have to discuss your financial decisions with someone else. In theory, this may ensure that you think twice before making an impulse buy.
Creating barriers to impulsive buying, such as freezing credit cards
Physical barriers matter. Credit and debit cards can be great for convenience, and having cash on hand is always a good idea, but these conveniences can sometimes lead to impulse buys.
If you find the temptation to spend money in your pocket too strong, consider limiting what you have. You can work with vendors to freeze your credit cards and ensure you never have more than a certain amount of cash. Some banks, like Village Bank, also have credit card products with spending limits and the ability to turn your card on and off. This can make it easier to reduce the temptation to spend money.
Redirecting urges toward healthier coping mechanisms
Impulse spending is often about something other than spending money: People who can’t control themselves financially may have other issues that need to be addressed. If that’s the case, consider developing alternative, healthier habits, such as leaving the story or putting down your phone. If you find impulse buying is something you do to improve your mood, you may want to consider speaking about these issues with a professional therapist. There may be underlying mechanisms driving your mood challenges, and by addressing these issues, you can dramatically improve your life.
At Village Bank, we’re here to help. We offer an array of deposit services to help you make the most of your money, as well as the tools you need to be a better consumer. We also offer an array of educational resources that are meant to help you become more knowledgeable about finances, help you become a more educated shopper, help you budget better, and help you be better equipped to live within your means.
Ready to learn more? Contact us today for the latest budgeting tools and financial products.