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In 2013, betabait.com
compiled a global report on impulse buying. The report showed that the main
reason that people impulse shop is that it puts them in a better mood.
However
serious impulse shopping can cause lasting problems and affects 2% to 5% of
adults, leaving the buyer seriously distressed or financially crippled.
"While there’s nothing wrong with
occasionally spending your money on an unplanned purchase, if this
spending happens more frequently, it may begin to eat into your
savings and get you into debt; signs that it’s time to make a change," says
Laurence Hillman, Managing Director of 1Life.
Getting over an impulse buying habit can be
as hard as beating any other 'addiction', so Hillman has highlighted ten steps
to help set you on the path to recovery.
You have to want to change
You’re not going to fix your spending
problem unless you really want to. If shopping often makes you feel guilty, or
your bank balance is taking strain, then it’s time to admit to yourself that
you need to stop what may become destructive behaviour. Making this decision is
the first step; then you have to try stick to it.
Budget better
Research from Columinate
shows that only 51% of people work off of a budget. The rest adopt an
easy-come-easy-go approach to spending.
One of the most important steps to
controlling an impulse buying habit is understanding exactly how much there is
to spend in the first place.
List your income and regular monthly expenses,
allocate a portion to savings, and then calculate what you have left over.
If
you do not spend more than this amount and you budget carefully each week, it
may help you manage your spending better.
Avoid buying on credit
Credit cards should only be used for big
expenses like air tickets or furniture purchases that you planned for how you
will repay the bank.
Put your credit card away in a drawer and only take it out
for PLANNED expenses. Aside from your home loan and vehicle finance, you should
avoid having more than one line of credit, anywhere.
Always make a shopping list – and stick to it
If you take the time to make a list of
everything that you need before you go shopping, you will be more inclined to
avoid impulse purchases.
If it is not on your list, don’t buy it. This is
the simplest and most effective way to beat your impulse buying habit.
Sales – were you going to buy it in the first place?
According to the betabait.com study, 88% of
all impulse purchases are made because the item is on sale. People truly
believe that the more we spend, the more we save.
Of course, there are savings
to be realised if you shop when the sales are on, but you have to be buying an
item you were going to buy anyway. Remember to always stick to your list!
Know why you shop
If you know when you tend to make more
impulse purchases such as when you are sad or lonely or it’s the end of the
month, identify these triggers and stay away from the mall at these times.
If
you really are using shopping as a crutch to help some deeper ailment, then
consider seeing a therapist to address that issue.
Don’t shop when you’re hungry
If you shop for food when you’re feeling
those hunger pangs, you’ll be far more likely to fill your basket with food
items you don’t really need which could mean you buy more than you planned.
Pack lunch for work or shop in the morning before the hunger sets in and plan
your weekend shopping for after meal times.
Bye-bye, online specials
You do not need to receive a daily
newsletter telling you how many wonderful specials you could be missing out on.
Unsubscribe from all your group buying and "discount" newsletters and never go
back.
Turn up the volume on that little voice
When you’re making an impulse purchase, you
know you don’t really need it. But you quash that inner voice as you pursue the
instant gratification high.
Let that little voice speak loud and clear when
you’re shopping, and ask yourself questions like: Do I really need this? What
will I use it for? Don’t I already have something just like it? And, most
importantly: Is it on the list?
Implement a waiting period
If you see something that you truly believe
you have to have, wait 24 hours. If, after you’ve slept on it, you still want
it just as much, and it doesn’t get you into debt you can’t afford, then go and
buy it. But remember to put the amount you will be spending into your budget.
Financial fitness is a long-term investment
"Impulse buying satisfies a need created by
our buying culture, but in the long run a healthy bank balance and solid
investments for the future should be a far greater motivation than a short
lived thrill," says Hillman.
Good luck with beating your spending addiction,
and happy saving.
Article by 1Life
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