Have you ever purchased a product only to realize shortly after that you shouldn’t have? Well, you’re not alone! According to one survey, over 75% of adults have admitted to making financial decisions they wish could be taken back. Many times, they bought impulse goods and regretted their purchase in as little as 9 hours after making it, too!
Millennials are especially prone to buying impulse products. In fact, they’re 50% more likely to purchase them and whether they realize it or not, this affects their ability to save and create wealth!
Impulse products are goods and services that consumers buy without planning to. They target your desire for instant gratification and pleasure which entices you to purchase them on the spot without considering your budget or long-term financial goals!
Retailers use marketing gimmicks and product placement to tempt you to spend, too. They place impulse items near the checkout or close to their best sellers which increases the likelihood that you’ll encounter them and be more enticed to buy.
Many times, people don’t realize they need or even want these items until they’re seen. The strong temptation these products have can cause them to overspend, potentially busting their budget!
Another study conducted by Slick Deals found that the average American spends $276 per month on impulse products. If you’re married, that’s over $6,600 per year of your family’s finances that’s spent on a whim. Just think, if you were able to stop or reduce your spending on these impulse purchase, you’d be creating a tremendous opportunity to lower your burn rate and increase your savings ratio!
Here are 10 ways that will help you stop buying impulse goods:
Your budget is your plan for what you intend to do with your money. It determines the way you’ll use your income to spend and save within the parameters that you’ve established.
While creating a budget won’t stop you from buying impulse goods, monitoring it can. By tracking and reviewing your spending, you can see the actual dollar amounts that you expend. Comparing them with the amount you budgeted allows you to see where you’re overspending and need to stop or adjust.
If you enjoy buying products on impulse, then it’s ok to continue as long as they’re included in your budget. Just be sure to set an amount you’re comfortable spending and that also allows you to save. This way, you’ll still get the satisfaction of buying on a whim while simultaneously working towards your future!
While a budget creates a plan for you to save, a shopping list determines exactly how you’ll spend. It gives you instructions on what and how much to buy, which can help control your urges.
Before you go to a store, get in the habit of making a list. Not only will it help you remember everything that you need, but it can also stop you from making impulsive buys.
Many people report that shopping with a list gives them a sense of satisfaction, too. They feel good crossing items off a list and sticking to their spending plan which helps to reinforce this behavior!
Your lists don’t have to get limited to the grocery store, either. You can make shopping lists, to-do lists, and my favorite – bucket lists!
It’s common for most people to shop without a list. Without one, they’ll leisurely browse the entire store, hoping they find everything they need.
However, wandering through a store with no direction increases the amount of time you’re inside it. And many studies show that the longer you’re within a store, the more likely you are to spend!
If you don’t have a list, then you aren’t sure of what you need or want. You’ll spend more time giving each aisle a once over, increasing your chances of encountering and buying impulse goods!
Retailers are making it easier and easier for you to buy their products and spend money. It’s a common practice for them to give you a discount in exchange for creating an online account that stores your credit card information. Now, anytime you’re tempted by a product, all you have to do is click “Buy It Now.”
The most common online retailers where people buy impulse products are:
Deleting your credit card information from these sites can help you stop making impulsive buys. Instead of simply clicking one button, you’d have to make a more conscious effort to buy. You’d have to get your credit card, enter it in, along with your address and shipping information, which may be enough time for you to second guess your decision!
Impulse purchases are items you buy on a whim that stems from a strong desire to satisfy a sudden craving. But, as you previously learned, these decisions often lead to regret.
To avoid this unpleasant emotion, try delaying your purchases. By doing so, you may find them at a lower price, discover something better, or change your mind altogether!
Thinking over your purchases allows you to determine if you really want the item. It also gives you time to do research and comparison shop, ensuring that you’ll find the best product at the best price!
Most impulse products aren’t considered expensive. Yet, some people get lured into buying big ticket items on a whim. Often, their rash decisions lead them into debt with high monthly payments, causing them to waste money on interest!
Common large impulsive buys include:
Big purchases should be well researched and planned in advance. It can even be helpful to create a monthly savings goal for the item you plan to purchase. Start by determining the amount you need and when you need it. Then, divide the cost by your time frame and add the amount to your monthly budget. By doing this, you’ll have enough money to pay for the item in cash!
For most employees, the relationship between time and money is interdependent on one another. To get more money, they’ll have to spend more of their time working and vice versa.
While American society focuses on money, it’s important to realize that time is your most precious resource. By putting your expenses in terms of time, you’ll be able to determine an item’s true cost.
For example, imagine you’re shopping and get tempted to buy a $100 pair of shoes. Even though this isn’t a large amount of money, you’re still paying for them with your precious time on Earth. If you make $30 per hour, they’ll cost over 3 hours of your life, leaving you with the question – are they really worth it?
If you’re like most people, you have a device that’s tied to you 24/7. No matter where you are, you receive a constant bombardment of solicitations through email, text, and phone calls – most of which are temptations to buy.
You can prevent these messages by unsubscribing and opting out of them. In addition, visit DMAchoice.org to stop receiving unwanted catalogs and mail.
Another way to avoid buying impulse products is by not spending any money. Try challenging yourself to not buy anything for a specific amount of time, like for a day, weekend, or even longer!
You don’t have to give up spending altogether, either. You could complete a challenge that eliminates spending in one or more areas of your budget, such as groceries, dining out, or entertainment.
Participating in a no-spend challenge not only helps you avoid impulsive spending triggers, but it can also increase your awareness. It can point out areas where you’re habitually spending on things that may no longer be providing you with any value.
Impulse goods appeal to your desire for instant gratification. They make you believe that buying them will make you feel pleasure.
Like it or not, your emotions influence many of the decisions you make. Because of this, impulse products have the unfortunate ability to wreak havoc on your finances.
Many people buy them as a way to cope with difficult situations and feel better. But oftentimes, these purchases provide only temporary relief that leaves them wanting more. Instead of a quick fix, put the money towards something that will improve your life and last much longer, like your long-term financial goals!
Reviewing your goals every day can help you stop impulse buying. By doing this, you’ll be reminded of what you’re working towards, why you’re pursuing them, and that you need to save to achieve them!
Impulse goods are designed to grab your attention and lure you into spending money. By using this list, you can control these urges and stop, allowing you to make financial decisions that are better for your future!
Which impulse products tempt you the most? Comment below.
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