To be impulsive is to do things suddenly and without careful thought.

So, to resist impulsive spending, you need to recognise the signals and think about them first.

Think about how you felt when you bought something else on impulse, and ask yourself:

  • What effect did it have on my wallet, bank account or credit card?
  • Did I have to sacrifice something else to make way for this unplanned spend?
  • Was it worth it? If so, what difference did it make to my life?

Now, think about the thing that you are tempted to buy now:

  • Why do I want it?
  • How does it make me feel now? How will I feel about it tomorrow, or in a month’s time?
  • Does it fit into my financial plan?
  • Is there something else I could do, with the resources I have now, that would give me a similar sense of joy or satisfaction?

A deliberate plan, with an end goal of achieving financial freedom, can provide a framework for making decisions.

  1. Have a Spending Plan, and review it monthly (preferably before payday)
  • Set aside enough for what you need (essentials).
  • Honour your debt repayments, lay-bys, and instalments.
  • Commit to saving for things or experiences that add value to your lifestyle.
  • Factor in some fun or spoils that are free or affordable, so that you don’t feel deprived.
  1. Consider where you shop – in the store, at the mall, online or a local supplier
  • COVID-19 safety (distancing).
  • Convenience (time and transport).
  • Value for money.
  • Can you earn or redeem loyalty rewards (in-store cards, or online vouchers)?
  • An advantage of shopping in person is that you can pay in cash or with a debit card (less tempting to buy what you don’t need), whereas online shopping is usually a credit card transaction.

Consider that there may be items on your list that you can buy from a home-grown business. Example: A box of fresh-picked veggies, dairy and eggs from a local farmer delivered to your door, or gifts you could buy from a talented neighbour.

Spending money where you feel it is needed most ‘contributes to the greater good’.  This act releases Dopamine from that same reward centre of the brain that gets triggered from impulse spending, and the effect on you and those who you support is longer lasting.

  1. Resist temptation
  • Limit the retail apps that you download to your mobile device.
  • Mute app notifications.
  • Unsubscribe from electronic marketing (like newsletters and SMS).
  1. Manage your shopping time.

If you are shopping in person:

  • Plan where you need to go to get what is on your list.
  • Don’t shop in a rush. Give yourself enough to read labels and check prices.
  • To avoid distractions, limit your time in the store or mall – set an alarm; commit to a time to be home or meet a friend, or shop nearer to the closing time.

If you are shopping online:

  • Shop intentionally, in a space that is free from distraction.
  • Don’t buy on a whim, or when you are bored.

If you are buying a high-ticket item, set time aside to surf the internet or visit stores to hunt down good deals. Don’t be shy to negotiate, especially if you have enough money at hand to pay for it.

If you have made a rash decision, you could write it off to experience that will prevent you from making the same mistake again. Or maybe you return the goods and get a refund.

If you want to know more about how to improve your financial wellbeing, talk to a financial coach at LifeAssist.