All of us have seen something that caught our attention and we want to buy it immediately. In fact, vendors target your impulse, they place adverts and items that will make you want to buy immediately. This is another reason why you will start seeing displays of different items when you scroll through social media. There’s a difference between when you see something you love, you go home and plan towards buying it later. The other way around it is that you do not give it a second thought, you just dip your hands into your pocket or reach for your already maxed-out credit card. Voila! You swipe your card and then get home and start regretting your decision. Let’s talk about impulsive purchases and how it can affect your finances.

Impulsive Purchase in a Nutshell 

Let’s create another simple illustration. Lizzy is at the store or browsing online and sees something that catches her eye, something she didn’t even know she wanted, and she decides to buy it right then and there. When you make an impulsive purchase, it’s not something you planned to buy or thought about before; it just seems like a great idea or just too good to overlook.

Five Ways to Know You’re Buying on Impulse 

No planning involved 

The number one way to know you’re buying on impulse is the fact that you are buying something that was not included in your shopping list or budget. In financial literacy, planning ahead of the purchase is an important exercise, and that’s the opposite of impulsive purchases. The former involves planning, the latter involves no planning. Where it gets dicey is the fact that, when you buy on impulse, it affects your plans. For instance, if you need $500 to get some stuff at the grocery shop, and on your way you see a fancy pants that costs $300. How do you hope to still buy what you need at the grocery shop if you don’t have any extra cash? 

Instant Gratification

You feel a strong urge to have the item immediately. This is driven more by the excitement of having it right away than by a genuine need. You just want to have the item right away, sometimes you could even tell yourself “If I Perish, I Perish.” This attitude is a bold disregard for the outcome or consequences of your action. You know you could struggle to make ends meet if you make that purchase, but you feel when you get to that bridge you will cross it. Instant gratification fades off in seconds after acquiring such an item, so it’s not what you want to subject yourself to.

Little Research

When something catches your eye, instead of pausing to look up reviews, compare it with similar items, or check if there’s a better price elsewhere, you rush straight to buying it. This lack of due diligence can lead to missed opportunities for better deals or, worse, ending up with a product that doesn’t meet your expectations. 

Buyer’s Remorse

Buyer’s remorse is that uncomfortable feeling that sets in after making an impulsive purchase. It’s when the adrenaline rush of the wears off, and you’re left questioning why you bought the item in the first place. This is the point where you realise that the purchase was unnecessary, not affordable, or didn’t live up to your expectations. What’s then the point of buying something that makes you have regrets eventually? You would wish you never bought such items. Even though you may not experience this all the time, you can avoid it by always taking your time before going ahead to swipe your credit card.

Financial Planning Curbs Impulsive Purchases 

Financial planning is crucial when it comes to managing your finances and curbing impulsive purchases. You need to always create a budget and allocate funds for different needs. This will make you more conscious of your spending limits. This awareness will encourage you to think twice before making unplanned purchases.

Essentially, financial planning helps you prioritise your spending, ensuring that impulsive purchases don’t derail your financial stability and long-term goals. When you see your money as a tool to achieve your dreams, you’re more likely to resist the urge to spend it on things that don’t contribute to your overall goals.

Get Rid of Debt Now!

You can get rid of debt and get back your peace of mind and self-esteem. Being in debt is not the end of the world, you can still get a fresh start and enjoy financial freedom. At EmpireOne Credit, we understand that money matters can get out of hand sometimes but there’s a solution. Your debt can be reduced by up to 80%, and interest will stop immediately. Call us at (416) 900-2324 to schedule a free consultation with us. Being debt-free feels good!