5 ways to cut impulse buys
Freedom to be out more can lead to overindulgence
Since the COVID -19 vaccine became available in the U.S., there have been more opportunities to impulse spend that you didn’t get to enjoy early in the pandemic.
With the freedom to do more, consumers are spending more. For the first seven months of 2021, retail sales were up 15.5 percent compared to that same period in 2020, according to calculations by the National Retail Federation.
As some restrictions have eased, it’s likely that you’ve had new spending needs: returning to work, visiting with friends and family, and partaking in other backto-normal activities. But when the nonessentials threaten to put your finances in jeopardy, it’s important to keep your financial goals on track.
Here are five strategies to help you navigate impulse spending.
1. Wait a day or two
When you feel that overwhelming urge to spend, wait 24 to 48 hours to see if you still want an item, suggests Brad Klontz, a financial psychologist based in Colorado.
“Ask yourself: Can I afford this? Where am I going to put it? How am I going to feel about this purchase tomorrow? How am I going to pay for this?,” he said.
This pause can help calm the “emotional brain” and activate the “rational brain,” the one that holds you accountable tomorrow, Klontz said.
If you can’t bring yourself to wait, a store’s return policy may prove useful should regret set in. The return protection benefit on a credit card, if available, can also offer a backup option. When you make a purchase with the card that offers the benefit, it can provide a window of time to file a claim and receive a refund when a retailer’s return policy fails.
2. Start smart habits
Credit cards may help or hurt, depending on how you spend. Klontz said that people spend significantly more money when using their credit cards instead of cash. He suggests keeping a cash envelope to use in areas where you tend to overspend.
Also, minimize impulses by not storing credit card information on websites or apps, said Kathy Longo, a certified financial planner and president of Flourish Wealth Management, a financial planning firm in Minneapolis.
“It’s much easier to be like, ‘I’ll look at it later because I’m not going to go find my purse and get my credit card,’” she said. That time can indirectly make you rethink a purchase.
Once you do charge a purchase to a credit card, pay it off in full to avoid interest and save money.
3. Use curbside pickup
Many retailers offer curbside pickup. It’s one option that Lauren Miller, a Massachusetts resident, uses to stay debtfree.
Avoiding the inside of the store means “you’re not seeing those seasonal items and those flashy marketing strategies,” she said.
4. Include splurge
Build a personal allowance into your budget for potential musthave purchases. When
Miller first started to curb impulse spending, she gave herself $20 to use at each store. Over time, that amount lowered to $5 per store as she embraced the habit. Since she frequents only about four stores per month, the total doesn’t dent her budget.
“The desire to make impulse purchases lessens, I think, because I know I have the permission to make an impulse purchase if I choose to,” she said.
5. Get a partner
An accountability partner can help you dissect your reasoning for a purchase. They don’t have to offer an opinion, just an ear. The goal is to hear yourself
talk about it out loud and make a decision that aligns with your goals and values, Klontz said.
He suggests choosing a spending limit that merits discussion. For instance, if a purchase exceeds $100, then it may be worth running by an accountability partner. Another option is to use social media followers to stay accountable. Miller, as a content creator on YouTube, documents her progress on social media platforms by sharing her plans to stick to a shopping list.