Spending on Impulse: How to Break the Habit and Save More

Spending on Impulse: How to Break the Habit and Save More

Blog Article

Everyone’s done it—you walk into a store for one thing and walk out with a bag full of items you weren't expecting to get. Buying on impulse is one of the biggest barriers to accumulating wealth, and it can quickly derail your money goals if you’re not careful. The good news is that overcoming spontaneous purchases is possible, and with a little self-control and a few helpful tricks, you can start increasing your savings and making wiser spending decisions. The key is to understand the causes behind your spending and shift those behaviors with positive, money-saving behaviours.

The first step to reducing impulsive buying is to create a budget and follow it. Knowing exactly how much money you have allocated for extras each month can help you fight the temptation to make unplanned buys. When you see something you want to buy, take a break—pause for 24 hours before pulling the trigger. This gives you time to evaluate whether you actually need the product or if it’s just an unnecessary desire. More often than not, you’ll find that the desire to buy fades, and you’ll keep your money in your pocket.

Another useful idea is to limit your exposure to temptation. If buying online is your challenge, remove yourself from mailing lists and remove saved payment details from your favourite retail sites. If you tend to spend impulsively in person, avoid bringing your credit cards and use only cash. By putting limits on your ability to spend, you’ll have more time to think about your purchases and avoid succumbing to spontaneous purchases. Changing your spending habits may take online financial advisor time, but the eventual payoffs—more savings and less financial stress—are well worth the effort.