Black Friday Sales: The Do's and Don'ts of Impulse Shopping
Shopping can be enjoyable, but there are times when it's just difficult to resist the impulse buying urge, especially during the sales season. And with the growth of online shopping, impulse buying has reached a new level where you don't need to be in the store to complete the transaction.
It is estimated that an average American spends $276 on impulsive shopping every month. That amounts to an extra $3,312 spent annually and nearly $198,720 throughout a lifetime!
Almost all of us have succumbed to the quick thrill of impulse purchases. According to a recent report, typical impulsive expenditure has increased by 51% since 2020.
Black Friday and Cyber Monday sales are just around the corner, and everything will appear to be a deal. But beware! The goal is not to deprive yourself of anything but to break the spending habit that could negatively affect your financial planning and budgeting. We offer tips to assist you in steering clear of such purchases and maintaining financial stability.
Economic Turmoil and Impulse Shopping: The Do's and Don'ts
Impulse shopping can wreak havoc on your financial health, especially in times of rising inflation. Here are some stats that you should keep in mind.
Since the inflation rate increased by 0.4% in September and is still significantly higher overall than the benchmark target rate of 2%, it is now more likely that future "jumbo" interest rate increases will occur next year.
In times like this, impulse buying can damage your long-term financial goals.
Make A Budget And Stick To It
First things first: You must create a budget.
The kicker is that you have to follow through with it! Budget isn't a magic wand that will magically make all of your money behave. It would be best to decide where your money will go each month and then carry out your plan. It would be best if you only thought of spending money on things it has been budgeted for. Yes, it is that easy and difficult.
Delay Your Purchases
Two thirds of impulsive purchases are made on smartphones while in bed.
Make yourself wait if you find something that makes you feel like you have to have it. Take a walk, give your brain some time to assimilate the information, and then come back to it in a day or two when your emotions have subsided, and you are thinking rationally. If it were an impulse buy, you probably wouldn't remember it; however, if it was necessary, you probably will. Always keep in mind that if you purchase items you do not require, you will be forced to sell the items you do require.
Give yourself time to consider if it is a want rather than a need. Have you wanted it for a while, or are you just interested in it since it's on sale? Spending decisions should be made with an open mind, heart, and eyes.
One of my favourite strategies for avoiding impulse purchases is deciding what you want to buy and how much money you'll spend before you step foot in a store. If you have a plan, you'll be less inclined to cave into impulse purchasing. If you know what you want to buy before shopping, you may find room for extra (important) stuff, like stocking up on groceries for Thanksgiving or buying Christmas presents for your extended family.
Do Not Shop When You Are Too Emotional
Don't allow your feelings to dictate how much you spend!
You can have a great day and decide to buy something on the spur of the moment. Or you may have a bad day and convince yourself that you deserve something good or that buying this stuff will cheer you up.
We've all been there before. It is fairly simple to do. How, then, can it be fixed? Avoid making purchases when your emotions bounce around, whether you're happy or trying to cheer yourself up.
Do Not Subscribe To Too Many Email Lists
November is approaching, and everyone will receive an extreme overflow of sales emails.
Let me tell you how this will flow. Everything has been planned out, and you've been doing well, keeping to your budget. However, when you check your inbox, you see 15 separate emails promoting successive deals!
You weren't even planning on purchasing, but these advertisements caught your attention, and you had to see what was on sale. This is where the vicious cycle of impulse buying starts, and now you regret it.
Guess what? We could all use a little "unsubscribe" in our life.
Do A No-Spend Challenge.
When circumstances are dire, strict actions must be taken, and there are occasions when a no-spend challenge is the best course of action. If you've never heard of it, it works exactly how it sounds—you don't pay any money (for nonessential items).
You continue to make payments for expenses like rent or a mortgage, routine bills, electricity, food, etc. However, you don't spend money on things like dining out, going to the hairdresser, buying new shoes, or buying a new kitchen gadget. Just enter a store to buy essential groceries (that are on your list!).
Only enter a store if something is on your list of essentials.
Consider the last time you made a purchase that you regretted before acting on your next impulse to shop. That could point to a pattern you want to break in your actions.
It's acceptable to make impulsive purchases occasionally. Impulse shopping only becomes a problem when it becomes a habit or a crutch for dealing with life's ups and downs.
The short- and long-term effects of impulse shopping might impact your financial health. If you use your credit card for purchases, picture the enormous bill due at the end of the billing cycle. Additionally, because of the high-interest rate, paying simply the minimum amount puts you in danger of paying more. These Do's, and Don'ts of impulse shopping will help you keep yourself in check!
I hope this helps. Happy saving and less splurging!