You run into Target to quickly grab a baking ingredient, when suddenly you have convinced yourself to buy out the entire home decor section. As soon as you swipe your card, you immediately regret your purchase and have buyer’s remorse. This scenario is a prime example of impulsive spending--it happens to the best of us, but learning how to stop impulsive spending is a critical step in managing your personal finances.

In a nutshell, impulsive spending is any purchase that you have not planned for in your budget.

Impulsive spending is bad because it causes people to needlessly spend money, derail their budgets, and potentially go into debt.

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Why do people spend impulsively?

They had a rough day and want the purchase to make them feel better

Let’s say you had a terrible day at work, so you decide to swing by Loft on the way home and buy yourself something nice because “you deserve it” and it will make you happy.

Retail therapy (or comfort buys) are good examples of impulsive spending. People shop to improve their mood, but often end up feeling even more stressed about the excess money they just spent.

They’re tired or stressed and want something because it’s convenient

When I was in college, I was going to school as a full time student and working over 30 hours a week. Needless to say, I was super busy, stressed, and exhausted.

Instead of meal prepping, I would frequently swing by a takeout restaurant for dinner after shifts. 

These convenient purchases are common for so many of us! They are almost always made on a whim, and the $10-$12 per meal can quickly add up.

They think they’re getting something for a good deal

Have you ever bought something that you absolutely don’t need just because it’s on sale?

A common example of this is obscure kitchenware--you know that specialty avocado slicer you bought on sale three years ago but have NEVER used because you use a regular knife like everyone else?

That’s a great example of impulsive buying something just because you got a good deal.

They’re trying to impress others

So many Americans are guilty of spending money we don’t have to impress others. As of 2015, the average outstanding credit card debt for American households is $15,609!

That’s a LOT of money!!

Whether they’re buying new clothes, makeup, household decorations, etc., a fair amount of impulsive purchases are made to “keep up with the Joneses.”

Questions to Ask before Making an Impulsive Purchase

When breaking the habit of impulse buying, ask yourself these questions to combat the temptation to spend money:

How do you want this item to make you feel, and will it actually accomplish that for you?

In the middle of my worst impulsive spending days, I was going through some personal issues. I was in a toxic relationship that made me feel pretty self-conscious, and used makeup as a way to cope with it.

Essentially, I was buying makeup to try to boost my confidence. When, in reality, it only made me feel anxious about the amount of money I was spending.

Asking myself how I wanted the purchase to make me feel had a HUGE impact on how I spent my money. If I was feeling down and wanted to buy an eyeshadow palette to make me feel happy, I would ask if the eyeshadow palette would actually do that for me.

The answer was typically no, so I stopped buying the eyeshadow palette.

Does this purchase align with or take away from your financial goals?

Let’s say, for example, that you want to pay off your student debt but you get an email about a flash sale at Anthropologie.

Does a new cardigan that you hadn’t budgeted for mean more to you than paying off your student loans?

If the answer is no, then add the cardigan to your wishlist and budget for it the next month.

Do you need this thing RIGHT NOW or can it wait for a few days or weeks?

Most of the time, impulsive purchases are not necessities. If you don’t immediately need the thing you are considering, add it to a wishlist and see if you want it just as badly in a few days.

Other Tips to Avoid Impulsive Spending

Create a budget that you will actually stick to

Setting a realistic budget is a great way to avoid impulsive spending. When you create a budget, you are essentially creating a plan on how you want to spend your money for the month.

If you are new to budgeting, check out this post on how to start a zero based budget!

Add “fun money” to your budget

Remember, impulsive spending is any purchase that you have not planned for in your budget.

If you’ve budgeted clothes money for the month and you decide to go shopping on a whim, then that is NOT an impulsive purchase (as long as you don’t go over your allocated amount!).

Here’s the thing: you ARE working hard, and you DO deserve to treat yourself.

Anticipate this, and include “fun money” to your budget! If your budget is too restrictive and doesn’t allow you to do the things you enjoy, that is a surefire way to spend impulsively.

Track Your Spending

Once you have your budget in place, continue to track your spending to make sure you don’t go over in any category. This will give you a good idea of how much money you have available before spending.

Wait 24+ Hours

Instead of buying something the minute you see it, wait a day or two before deciding to get it.

A lot of times, purchases are made when emotions are high. By setting a waiting period to buy something new, you will give yourself time to determine if you actually need the product or not.

Shop with Cash

Numerous studies have shown that people spend more money when paying with a credit card.

If you feel like your credit card is contributing to your impulsive spending habits, start shopping with cash instead.

When someone buys something with cash, they are much more likely to internalize how much the item actually costs and much less likely to overspend.

Unsubscribe from Emails

If you are subscribed to a bunch of different stores email lists, unsubscribe from their promotional emails.

This will remove the temptation of flash sales, which are essentially asking you to spend impulsively.

Final Thoughts

Impulsive spending happens to all of us from time to time, and can be a tough habit to break.

When tempted to impulsively spend, ask yourself these questions:

• How do you want this item to make you feel, and will it actually accomplish that for you?

• Does this purchase align with or take away from your financial goals?

• Do you need this thing RIGHT NOW or can it wait for a few days or weeks?

You can also avoid the temptation to overspend by:

• Creating a budget that you will actually stick to

• Adding “fun money” to your budget

• Track your spending

• Waiting 24+ hours before deciding to buy something

• Shop with cash

• Unsubscribe from promotional emails

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