I is for Impulse Buys and How It Affects Your Financial Future

Impulse spending could be silently wrecking your finances without you even realizing it. Every dollar spent outside of your budget or without thought can impact your finances in both the short term and long term. Not being careful and being too spontaneous could be the difference between financial freedom and financial frenzy. Sometimes our emotions and wants get the best of us. But it is important to practice self control, especially if we have a larger financial goal in mind.

What is an impulse buy?

An impulse buy is spending money impulsively, on a whim, or without a thought, usually driven by emotions. It is the type of spending that can derail your budget, or make you check your bank account after a weekend of shopping and dining out and say “where did all my money go?” Such spending can include going out for coffee or lunch at work because you left yours at home, grabbing extra treats while waiting in line at the store, or even seeing an online ad/email for something you didn’t know you needed. Either way, these impulse buys can quickly add up.

Why do we spend recklessly?

It can be easy to spend money recklessly and impulsively. Having a bad day? Buy a little treat! Want to celebrate something big or small? Why not buy yourself a little treat. There are many reasons why one would want to buy things without a second thought. It can feel therapeutic, it can feel rewarding, and it can feel like a relief when things feel too tough or too busy. But when spending is driven by emotional rather than true needs is when you can get into trouble.

How can we stop impulse spending?

If you have a larger financial goal, it is best to practice self control. The first step would be to create a realistic budget and stick to it. Even if it feels difficult at first, it will put your spending into perspective and prompt you to make lasting changes. You can also create lists when you grocery shop, and commit to buying only what is on that list! This way you won’t be tempted by end displays or sale items. Another hack would be to stop saving your payment information online. That way when you are up late online shopping, you’ll be less tempted to actually buy it. Always sleep on an unnecessary purchase if you can.

But don’t forget to treat yourself!

If you feel deprived of treating yourself or your past spending habits, you are only going to go crazy if you do succumb to some impulse spending. And while it is OK to make mistakes and have setbacks, one way to help have less of them is to treat yourself every once in a while! Whether it be once a week or once a month, figure out what works best for you and your budget.

I is for Impulse Buys and How It Affects Your Financial Future

I is for Impulse Buys and How It Affects Your Financial Future

What is an impulse buy?

Why do we spend recklessly?

How can we stop impulse spending?

But don’t forget to treat yourself!

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I is for Impulse Buys and How It Affects Your Financial Future