Have you ever found yourself spending a lot of money on things you didn’t plan to buy? Does it happen often? If your answer to both questions is yes, you aren’t alone. Also, we aren’t judging. Impulse buying is a very common financial pitfall. From a shiny new dress in the perfect colour to the latest electronic device you saw with a friend, many things can lure you into making it a habit.
Buying these items can make you feel good and do wonders for your ego, but can your wallet and bank account shoulder the effects of impulse buying? As great as it may feel, it has consequences for your finances and it can be quite severe. This is why your impulse buying habit must be put under control in time for the new year.
What are the negative effects of impulse buying?
Perhaps the most obvious negative effect is running into financial difficulties, but it’s not the only one. When you buy things without planning first, there is a great chance that you’ll end up purchasing things you don’t need because no thought was put into the purchase. You may also feel a lot of negative emotions like guilt and regret after spending on impulse
How to stop Impulse buying
Bad financial habits can constantly leave holes in your pocket, but all that can change. They can be remedied.
You can conquer your impulse buying and master your money again. Here are some tips to control this habit:
1. Find the cause of your impulse buying: Impulse buying can sometimes stem from emotional issues. You may be feeling anxious or sad and it can bring on the need to buy something, anything to make yourself feel better. When you find the root of your impulse buying, you can avoid retail therapy and find a healthier coping mechanism that does not involve putting yourself in a tough spot financially.
2. Take time with your purchases: When shopping, don’t be in so much of a hurry to pay. Give yourself some time to think it through in case you change your mind and decide it isn’t so much of a need after all. Impulse buying is usually done in a hurry and without much thought. Allowing yourself dome extra time just might be the miracle hack you’ve been searching for.
3. Make a budget and live by it: In healthy personal finance, budgeting is everything. Budgeting is one thing, but having the discipline to stick to that budget is even more important. Create a realistic budget and discipline yourself enough not to exceed it.
4. Create an extra budget to splurge: Splurging is alright once in a while, but you can also plan your splurge. Setting aside an amount of money to buy yourself what you like can also help your finances by keeping you aware of what you can afford. Even while you splurge, it’s wise to establish financial limits and not go beyond them.
5. Record your purchases: Accountability for past expenses can help you spend better and wiser in the future. If you feel regret towards an unnecessary purchase you made in the past, you may be less likely to spend unwisely again. Keep record of your big purchases and splurges. It can also help you answer the question you keep asking yourself: Where did all my money go?
6. Plan your shopping trips: If you’re prone to buying last minute, unplanned items on the shelf when you go to the mall or supermarket, this is a sign to make a list. Before you leave home to go shopping, think carefully and make a list of the things you need. If you like, you can also make provision for buying extra. This can help you control your impulse buying on shopping trips.
If impulse buying is a habit for you, there’s no shame in it. It’s quite common. There’s a reason “retail therapy” is so popular. What you can do however, is commit to a better lifestyle in the coming year and make healthy resolutions for 2022. You can control your habits and still have fun. In fact, you will be happier knowing that your purchases and fun plans are not interfering with your financial stability.
In the spirit of having a financially healthy christmas, check out this article about celebrating christmas on a budget.
It’s almost 2022 and now is the best time to cultivate better financial habits this year by planning your money and saving. Get on the Crowdyvest platform today!