Tag Archives: Impulse Buying

Tips for Avoiding Impulsive Holiday Spending

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It’s that time of year again. If you’re prone to swiping your credit card or blowing your budget in December, knowing a few ways to curb your impulse spending can help you get through to the New Year with your finances unharmed.

Understand why you buy. For the majority of non-essential purchases, most consumers make the decision to buy based on emotion. The product conjures up a positive feeling that is compelling enough to make you want to open your wallet. Stopping to examine the reason why you buy can help you determine if it’s a wise purchase and if it’s absolutely necessary.

Don’t shop hungry. Below normal blood sugar can impair your judgment.  Being hungry can cause you to be cranky, emotional, and more impulsive. Eat a balanced meal before leaving the house and always carry water and healthy snacks before going out shopping.

If you are easily swayed by the opinion of others, shop alone. Although, if you have little willpower when it comes to overspending, take along an accountability partner and discuss your spending limits and budget before you walk into the store.

Use a prepaid card. If you know you’re inclined to overspending, determine your budget and put the funds on a prepaid debit card allocated for holiday gift purchases. Leave your other cards at home and take only your driver’s license and enough money for gas and meals. When the prepaid card is empty, you need to be done shopping.

Shop online. Some consumers do better sticking to a budget when shopping online. Using a prepaid card or connecting through your PayPal account, you can safely do a lot of holiday shopping online. This allows you to thoroughly research products at your leisure without the pressure of other hurried shoppers, crowds, or a relentless salesperson. You also have the ability to review your shopping cart extensively and remove any unwise purchases without embarrassment before you buy. If you are shopping online, remember to research online coupon codes to get the best deals too!

Walk around the store with your items for awhile before purchasing and see if you really still want them by the time you are ready to check out.

When considering the cost of an item, think of how many hours of work it will take you to earn the full purchase price. If you would be willing to work a 40-hour work week without pay in return for receiving that item you’ve been eyeing, it may be a good purchase. Otherwise, walk away.

Freeze your credit cards for the month of December. When all else fails and you don’t want to give in to using your credit cards – put them in a cup of water and stick them in the freezer until the holiday shopping season is over. Do not defrost them before the new year.

Call your financial institution and request a lower daily spending limit on your debit or credit cards. This may be a great budgeting option if your bank or credit union offers it.

You don’t have to buy a gift for everyone you know. Be frugal with your gift list. Write down the people who you absolutely have to buy for: your kids, nieces and nephews, and so forth. Do you really need to buy individual gifts for all your co-workers? If so, try to make the spending limit minimal. Perhaps you can also suggest doing Secret Santa gifts with co-workers or if you have a large family as well. This way you only need to buy a gift for one person and there is typically a spending limit. Another idea for co-workers or a group of friends is not to exchange gifts and just all get together for a meal or night out instead.

The usual tips of don’t wait until the last minute and make a shopping list and stick to it always apply, but for many impulsive shoppers – this isn’t enough to control the spending behavior. If none of these tips will help you break your impulsive spending habit, your best solution may be to make a list and let someone else do the holiday shopping for you within the set budget and funds you provide them with.

Article Source:  Jamie Simmerman for Moneyning.com

3 Steps to Reduce Your Impulse Spending

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It can be tough to resist spending money. When you see something you want, especially when it’s at a price you like – it can be difficult to keep from making the purchase. With the way the internet and our smartphone apps have made it so easy to shop, the solution isn’t as simple as just avoiding the stores. If you’ve got an itch for shopping, here are three steps you can take to help you get back in control of your finances.

Take your time: During an impulse buy, for the most part – the whole process from finding the item to paying for it only takes a few minutes. Next time you’re about to hit the “buy now” button, slow down. Put the item in your online shopping cart, but wait before completing the transaction. Try not to buy anything the day you add it to your online cart. Let it sit and think – do you really need this item?

Think it over: If you’re still thinking about that item after sleeping on it, go back into your online shopping cart. In your cart you’ll be able to see the total price (including taxes and shipping), and decide for yourself if the item is really worth that total cost. At this point, look around some more online and try to find a better deal, but still – don’t buy the item (yet). After you’ve done all your research, put the item on your wish list or save it for later.

Be ready: You’ve thought about your purchase for days now, and you know you’re going to buy the item. You’ve done the research and you’ve found the lowest price. Do you have the money to make the purchase in your checking account? If the answer is yes, then go ahead and complete the transaction. If you don’t have the money now, save and start the process over when you’ve saved up enough to buy it without going into debt.

These same steps work for in store impulse purchases too. If you see something you’d like to buy when physically in the store – think about it for a day. The next day do some comparison shopping to make sure you are getting the best price. Still want the item on the 3rd day and you have shopped around and have the money to buy it? Head back to the store and make your purchase.

It pays (literally), to be a savvy shopper and reduce your impulse purchases!

Article Source: John Pettit for CUInsight.com

5 Ways to Curb Impulse Buying

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It’s so hard to fight the urge to spend money. You’ve earned it, so why can’t you spend it – right? It’s certainly fine to give in once in awhile, but impulse buying can really throw your budget, especially if you’re buying higher priced items.

Impulse shopping is far from uncommon in America. According to a survey from CreditCards.com, about 54% of Americans have spent $100 or more on an impulse purchase. The survey also points out that 84% of Americans have made impulse purchases, and 20% have even made purchases of at least $1,000 on impulse – wow!

If you’re looking for ways to finally kick this type of habit, here are five tips to help overcome impulse buying:

Make a Shopping List

The easiest way to fight impulsive shopping is by making a list. When you go shopping, know exactly what you’re there for and stick to the original mission. If an item is not on the list, you don’t buy it – it’s as simple as that. Sticking to the shopping list will take some self-discipline but with a little practice, it will become second nature.

Create a 30-Day Rule

Impulsive purchases happen essentially because you don’t give yourself the time to rationally think about the purchase. The next time you feel the urge to buy something, tell yourself to wait 30 days. After the 30 days, do you still want it? Are you still thinking about it? If so, go ahead and buy it – but you’ll find that most of the time, you’ve long forgotten about it already.

Budget in Impulsive Purchases

Some people just can’t help it. They’re going to buy random items regardless of how much planning they do. If you’re one of those people, that’s okay. Just put it into your budget. Create a category for “miscellaneous spending” or in other words, impulse purchases. Once you’ve reached the max for the category during a given month, you’ll have to wait until the next month to buy anything else. This way, you can satisfy your urge to shop while controlling it at the same time.

Bring Cash Only

Another way to stop yourself from impulsive buying is to leave all your credit cards at home. Just bring cash. Doing so will put a limit on how much you can buy. Of course you’ll want to be prepared and know how much cash you’ll need to bring for at least essentials, but this could be a very effective method if you’re good with keeping track.

Think About Those Long Term Goals

Thinking about the future is actually very difficult, as shopping can be fun and the thrill of making a purchase even more so. But think about your long term goals and all the things you want to save up for. You’ll realize that there are probably more important things than what you’re about to buy. Is that pair of designer jeans really worth delaying your vacation? And what about another new tablet or other electronic device? Is that more important than saving for retirement?

The answer could very well be yes, but most of the time – opt to save up and spend it on something that truly matters.

Article Source: Miranda Marquit for Moneyning.com