Friday, January 18, 2019

Say No to Impulse Buys


Living in the era of technology has made impulse buying an absolute breeze. Online shopping and credit cards have lent themselves to numerous negligent purchases that continue to lead us to multiple financial missteps. Feeling poorly about a purchase, especially if it’s a large one, is never a good feeling. It has been said that shopping habits are connected to our emotions, so feelings of regret are not conducive to maintaining a healthy lifestyle. Learn how you can avoid making future purchases that will make you feel crummy by reading below.

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Need to get your spending in check? Real Simple[1] is here to help advise you on how to gain more control over your spending habits that will have your bank account thanking you.

Check in With Yourself Before Buying: Being aware of the feelings that surface around money is essential to making good financial decisions. Tessler strongly recommends doing a body check-in the next time you go to buy a sweater or a pair of jeans on a whim. “All the same emotions that come up in every other area of life come up around money as well, so it's really important to understand what is the emotion or set of emotions that come up for you,” she adds. Before you buy that couch, sweater, or sneakers, stop, pause, and notice what’s going on in your body—both physically and emotionally. Is your body relaxed or tense? Are your shoulders up to your ears or are they down? Is your breath shallow or deep? Are you excited or anxious? Mindfully observing if you feel anxious while making a purchase could be your cue not to buy the item.

Ask Yourself These 4 Questions Before Making a Purchase: Before buying, try a popular check-in technique used by support groups like A.A., called the HALT method. HALT has us ask ourselves: "Am I Hungry, Angry, Lonely, or Tired?" Tessler explains: “If we can stop and pause and just see what’s going on in our body ... we might stop ourselves from making an impulsive buy." By taking the time to get to know ourselves better, we begin to gather more information on when we’re most likely to splurge and what state provokes these actions. For example, if you learn you often overspend when you're stressed right after work, you can learn to avoid shopping at that time to prevent purchases you may later regret.

Set Your "Impulse Buy" Budget: If you're not currently using a money-tracking app or program, now is a good time to start. There are many free apps that make it easy to keep track of what you're spending and can even help you set up a budget. Set up a budget for "food," "housing," "healthcare," and other common expenses. If you want to be able to still make the occasional impulse purchase but just want to curb wild overspending, make "Impulse Shopping" its own section of your personal budget. Set up a notification and the app will let you know once you've hit your limit. This way, you'll still have the freedom to make some spontaneous decisions, but that spending will still be factored in to the big picture of your budget.

Take Some Time Off from Shopping: When shopping compulsions turn into a bad habit, you’ll need to break the cycle completely before you can shop again in a healthy way. “It takes 21 days to break a habit, so if you’ve gotten into the habit of splurging, then you need to avoid shopping for at least 21 days to learn new ways of being around shopping,” advises McCoy. She suggests staying away from shops you enjoy and online shopping and instead finding things to do that don’t require spending. Knowing ways to treat yourself that don’t involve buying something can be extremely empowering. “You deserve something, too, but make it a bubble bath with wonderful music rather than a cashmere sweater,” proposes McCoy. After you’ve broken the spending cycle, try switching to a more concrete form of payment—cash. “It just emotionally feels more powerful to see how much you are spending rather than swiping a card and signing a machine,” she explains.

Assess Your Needs: While keeping a list of the things you actually need is a great way to cut down on impulse buys, an even better tool is having a set of questions that you can ask yourself during small, medium, and large money decisions. “When I’m clothes shopping it can be anything from, ‘Do I really need this? Do I want this? Will I really enjoy this or get value out of this?’” says Tessler. If you don't answer "yes" to every question, you know it's time to move on. 

Watch Out for Retail Tricks: Being a mindful shopper also means being aware of retail tricks. “So many of the ‘deals’ are trappings,” warns McCoy, “Buy what you need now, not what you think you may need one day because it’s a good deal.” When people buy things on a whim, they’re not letting the logical part of their brain make the financial decision, but rather the reactive part. The next time you're debating whether to buy a dress or a necklace on sale, ignore the "deal" for a moment and ask yourself the questions outlined on tip #5 instead. If you don't answer "yes" to every question, it doesn't matter how much money you're theoretically saving, you don't need to buy it.

Rein In the Holiday Shopping Spree: “The holidays are like a microcosm of your larger money story and it gets really exacerbated because this is when there’s a lot of expectations around family and gift-giving," explains Tessler. "For some people, gift-giving is their love language, for others it’s not,” she says. Rather than let your emotions run the show, set up a budget for how much you'd like to spend on each person or each gift even before you set foot in the store or start scrolling online. It's easier to stick to a dollar amount when you have one set in mind beforehand. There's a lot of social pressure to overspend during the holiday season, but coming into it with a clear budget in mind will help.

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Works Cited:
1.       Christiansen, Marla. “7 Smart Strategies to Avoid Impulse Buys That You’ll Regret Later.” Real Simple. 19 November 2018. <https://www.realsimple.com/work-life/money/spending/how-to-avoid-impulse-buys >.


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