Impulse buying is when you make an unplanned purchase on a sudden whim, potentially causing you to overspend. Some examples include throwing a bag of chips into your shopping cart while waiting at the cash register or purchasing an expensive pair of jeans you see in an ad while casually scrolling on social media. Read on further to find out why people like impulse buying and what to do to stop it.
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Types of Impulse Purchases
There are four types of impulse purchases that people make: pure, reminder, suggestion, and planned. Knowing which type an impulse purchase falls under may help you understand if there are any patterns in your spending. We’ll define each type below.
Pure impulse: This is when you make a purchase based off an emotion. For example, you’re craving something salty, so you grab some chips while you wait at the cash register at the grocery store.
Reminder impulse: You see something that reminds you to get an item. For example, you’re at the store to pick up toilet paper and pass by the drinks aisle and remember that you’re running low on soda or beer.
Suggestion impulse: You imagine a need for a product you see for the first time. An example would be seeing a shed at Costco and believing you need it so you can have more space to store items at your home, even though you didn’t think more storage space was necessary before.
Planned impulse: This is when you make a purchase based on sales or coupons for a product you were already planning on getting. For instance, maybe you were considering getting an air fryer for a while, but then decided to buy it when you saw it was 50% off at the store.
Five Reasons Why We Impulsive Buy
Impulse buying can be caused by several emotional and situational triggers, such as needing instant gratification, wanting to feel good after a stressful event, or seeing a sale you don’t want to miss out on. Being aware of these triggers can help you think before you buy.
1. You want instant gratification. You’re bored or craving something sweet or salty, for example, so you purchase something quick to satisfy your craving or ease your boredom.
2. You are trying to feel better. You’re feeling stressed, anxious or depressed, so you buy something to improve your mood temporarily.
3. You are influenced by others. You buy a pair of shoes or a cool new gadget that you see your friend sporting on social media or you get concert tickets at the last minute after you find out all your friends are going.
4. You see a sale or a discount. You see a product that was not on your shopping list on display for half off the original price and you buy it, so you don’t miss out on the sale.
5. You’re lured in by advertisement. You see an ad on social media or in your inbox for a product that’s offered for a limited time, so you feel the need to buy it now.
Why Is Impulsive Buying Bad?
An impulsive buy can give you a satisfying, thrilling rush in the short-term. However, buying things without considering the overall impact on your finances can have long-term negative effects.
May lead to buyers’ remorse. Quick purchases made on a whim may not live up to their initial hype, or you may decide later that you actually have no use for what you bought. More than half of buyers who made an online impulse purchase admitted that they regretted it, according to a survey done by shopping platform SimplicityDX.
Can cause financial strain. An impulse purchase may cause you to go over your spending limit if it was not originally included in your budget. It may also cause you to spend funds that you were going to use for necessary expenses or for future financial goals.
You may take out unnecessary debt. Regular impulsive buys can cause you to accumulate debt if you do not have cash on hand to pay for these purchases. In addition, the added interest can make the debt much more expensive than the original purchase price.
Could damage your relationships. You may start hiding your impromptu purchases, so your significant other does not know how much you’re spending, affecting trust within the relationship.
How to Stop Impulsive Buying
Make a Budget and Stick to It
Making a budget allows you to plan out your spending, so you can focus on using your money for your necessary expenses and reduce your likelihood of spending it on unplanned purchases. You can also set aside some money for making small impulsive buys in your budget. That way, you won’t wreck your budget since you have already allocated money for these purchases. The key is sticking to your budget, so you don’t spend more than you allocated.
Determine Your Spending Triggers
It’s important to identify the reasons behind your impulse buying. These triggers could be as simple as going to the grocery store hungry, so you put tasty snacks in your cart that were not on your shopping list, or more complex, such as feeling sad and depressed and wanting to buy something to temporarily lift your mood. The sooner you can identify those triggers, the sooner you can work out a plan to limit their negative effects.
Have a Waiting Period
If you want to purchase something that you originally did not include in your budget, give yourself a 24-hour waiting period. This waiting period gives you time to think about whether you really want this purchase and if you can afford it. If you still want the purchase, you can work out a plan to fit it into your budget.
Set Goals
Setting goals can motivate you to save your money instead of spending it on unplanned purchases. In addition, achieving long-term goals, such as buying a house or retiring early, can have long-lasting positive effects on your mood compared to the short-term effects an impulse buy has.
Use a Shopping List
Make a shopping list and stick to it. This can help you focus on buying only the things you need and prevent you from putting last-minute unnecessary items into your cart.
Pay in Cash
With credit cards, it is harder to see how much you are actually spending if you are not consistently tracking your transactions. This can cause you to overspend. However, if you use cash, you can instantly see how much you’re spending and when you don’t have enough money to make a purchase.
Remove Your Credit Card From Online Shopping Sites
Having your credit card saved on online shopping sites allows you to make a purchase with just a few clicks. However, removing your credit card information from these sites puts an extra hurdle for you to jump through before making a purchase. This extra hurdle may give you time to think about whether you actually need to make this purchase.
Limit Social Media Consumption
Social media sites are filled with ads and influencers tempting you to buy products that will supposedly make your life better. A WalletHub survey found that nearly 3 in 4 people have purchased unnecessary items from social media. To reduce the temptation to buy products you do not need, you should limit how much time you spend on social media sites and mute posts from influencers who are always recommending products.
Learn more about how to stop spending money.
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