How to Overcome Impulsive Spending Habits
We've all been there…
You weren’t planning on spending money, but then you see something you want, and suddenly, you have to have it. You make an impulse purchase, in the moment, only to regret it later when you realize you didn't need it or that you have other priorities for the money you spent on it.
Impulsive spending habits, when repeated, can wreak havoc on your finances making it almost impossible to stick to a budget, creating stress and overwhelm. To overcome your impulsive spending habits and take control of your finances, it requires a new, slower and more intentional approach to managing your finances -
Identify your triggers
The first step to overcoming impulsive spending habits is to identify your triggers. This means thinking about the situations or emotions that tend to lead you to make impulsive purchases.
For some people, it might be feelings of boredom or stress. For others, it might be the thrill of finding a good deal or the fear of missing out (FOMO). It may be a combination of things, depending on your mood or the situation.
Activity:
Think back to the last time you made an impulsive purchase. See if you can identify and write down some of the triggers. What were you doing? Who were you with? How were you feeling? What did you tell yourself to convince yourself to make the purchase?
Creating awareness of your triggers is a great starting point. As you can begin to recognise some of the ways you react, you can implement strategies to avoid exposing yourself to these situations, or find different ways to respond to them.
Identify how your feelings may be influencing your spending decisions
If you’ve ever been to a grocery store hungry, you’ve probably walked out of the store with many more items and having spent a lot more money than you had anticipated. Our spending habits are often tied to our feelings and emotions.
In our budgets, the categories such as food, eating out, entertainment, clothing, personal development and travel are most likely to be where we are most impulsive. Spending money in these areas can often create a sense of increased (albeit temporarily) feelings of joy, happiness, worthiness or belonging.
Activity:
For the next week, keep track of your spending. Have a notepad, journal or use your mobile phone to note every time you spend money on an item. Make a note of the item and its cost, and take a moment to check in to how you are feeling when you make the purchase. I.e. Monday - Take Out $25, Tired, Rushed.
This activity will help you to bring more awareness to how your feelings may be influencing your spending decisions, or give you insight to some of your spending habits, i.e. when you’re tired you eat take out more often, or if you’re feeling bored, you shop for clothes. Etc.
Practice mindfulness
Practicing mindfulness can help you become more aware of your thoughts and emotions and help you resist the urge to make impulsive purchases.
When you feel the urge to buy something on a whim, take a moment to pause and check in with yourself, to see if the purchase you’re about to make is something you need, want or can afford.
Activity:
Next time you’re about to purchase something, stop, take a breath and ask yourself a few questions:
- Do I need this?
- Will this purchase bring me lasting happiness?
- Can I afford this purchase without going into debt?
- What else should I / could I be spending this money on?
Taking a few moments to reflect on your decision can help you avoid making a purchase you might later regret.
Find alternative ways to cope
Suppose you've identified stress or boredom as triggers for your impulsive spending. In that case, finding alternative ways to cope can be helpful, instead of reaching for your wallet, for example, going for a walk, calling a friend, practicing meditation or picking up a hobby or activity when you feel bored.
Activity:
Make a list of things you enjoy doing, but don’t necessarily cost you money. The list could include cooking, talking with or spending time with friends, being outdoors, reading, gardening, listening to music, doing art, writing, etc. Keep this list handy, as it can provide alternative ideas to break stress, boredom and to help change the habit of spending money when we are feeling stressed, bored or emotional.
Practice delayed gratification
Impulse spending is largely based on a desire for instant gratification or to have a thing now, or in the moment.
By practicing delayed gratification, instead of making a purchase on the spot, you try waiting a day or two before deciding to buy it. This can help you avoid making a purchase based on a momentary impulse, and can help you make more intentional spending decisions.
Activity:
Next time you want to purchase something online or in store, give yourself 24 hours. Add it to cart, or put it back on the shelf, and allow yourself 24 hours minimum. At the end of the waiting period, if you still want to purchase the time, and can afford to do so, you’ll feel more confident in your decision.
Impulse spending is often habitual, done quickly and with little awareness. Following these tips can overcome your impulsive spending habits and build a stronger financial foundation.
Remember, treating yourself occasionally is okay, as long as you're making intentional and informed decisions about your spending.