Spending on Impulse: How to Break the Habit and Increase Your Savings

Spending on Impulse: How to Break the Habit and Increase Your Savings

Blog Article

Everyone’s done it—you go to the shop for one thing and end up leaving with a basket filled with products you never intended to purchase. Buying on impulse is one of the biggest barriers to accumulating wealth, and it can sabotage your budget if you’re not careful. The good news is that overcoming spontaneous purchases is possible, and with a little focus and a few simple strategies, you can start saving more money and making wiser spending decisions. The key is to pinpoint the reasons behind your spending and swap those tendencies with positive, money-saving behaviours.

The first step to reducing impulsive buying is to make a financial plan and stick to it. Knowing exactly how much money you have available for discretionary spending each month can help you avoid the impulse to purchase items impulsively. When you see something you want to buy, wait before buying—give it a day before making a purchase. This gives you time to assess whether you actually need the product or if it’s just an unnecessary desire. In most cases, you’ll find that the desire to buy fades, and you’ll keep your money in your pocket.

Another helpful strategy is to limit your exposure to temptation. If internet shopping is your challenge, remove yourself from mailing lists and delete stored payment info from your favourite retail sites. If you tend to buy without thinking in person, avoid bringing your credit cards and use only cash. By adding obstacles to purchases, you’ll have more time to think about your purchases and avoid succumbing to spontaneous purchases. Overcoming financial advice impulse spending may take time, but the eventual payoffs—increased financial security and lower money worries—are worth the discipline.