9 Tips On How To Stop Impulse Spending
Ready to stop impulse buying? Here are some practical tips and tricks to get started.
1. Create A Budget
Without a budget, it’s easy to spend irresponsibly or tack on unplanned purchases. Laying out a budget gives you a framework to keep your spending in line. While many personal budget templates are available, it’s important to personalize your budget to suit your financial situation and work for your goals. Different types of budgets are available to get you started, including the 50/30/20 rule and the 80/20 rule.
Dedicating portions of your budget to specific spending areas and debts can help you avoid tacking on unplanned items. This is where the Rocket MoneySM app can especially come in handy. It allows you to create your budget and track your progress so you have a better chance of sticking to your plan.
2. Use Cash
The cash-only budget, otherwise known as the budget envelope method, is another strategy for reducing impulse buying. Some consumers who limit their spending to the cash they have on hand find that they spend a lot less than when they use debit and credit cards. That’s because you’re actually watching the amount of cash you have dwindle, and it makes you think twice about whether you really need to part with it.
But as with any budgeting method, there are both pros and cons of the budget envelope system. While some people find it easier to save money and have better visibility into how much they spend, others might find it harder to keep track of their spending with cash. Some folks are also uncomfortable carrying cash around and find that many places don’t accept cash at all, which can make this method challenging.
3. Stop And Think
As simple as it sounds, you might avoid impulse buying by simply taking a moment to really consider the pros and cons of your purchase. After all, impulse buying stems from a failure to think the purchase through, so why not stop yourself before you get to the checkout line and determine whether each item in your cart is a necessity?
Ask yourself: “Do I really need this? Is it worth it? Is there something else I should spend this money on or save for?” Pondering these questions will help you reconsider a purchase and possibly put it back on the shelf.
4. Shop In The Right State Of Mind
Because impulse buying is usually an emotional or rash decision, it’s important to be in the right state of mind when shopping. If you’re stressed or sad, you might try to make up for it with shiny new gifts. If you’re tired, you might be less inclined to spend time considering your purchases. If you’re hungry, you might add on more snacks and new foods.
Try to be clear-headed when you make a purchase of any kind. Perhaps that means shopping in the morning before work so you’re not tired or on edge. Or maybe you find it’s best to shop after a workout when you’ve released some stress.
5. Avoid Temptation
Another way to eliminate bad spending habits is to avoid the temptation to spend frivolously. Whether your go-to outlet is online shopping or your favorite local clothing store, try restraining yourself from heading to the store or visiting the website where you’ll be tempted to make an impulse purchase.
Instead of driving over to your local clothing store when you’re bored, take a walk or check out a store with items you’re not tempted to buy.
6. Postpone Your Purchase
If you’re not sure whether a purchase is an impulse buy, hold off. Put it back on the shelf or store it in your “save for later” folder. If you’re still thinking about it in a few days, maybe then go back and get it. After a few days pass, you might find that you don’t have the same urge to spend or you’re in a better state of mind.
Give yourself a waiting period for any unplanned purchase. Whether it’s 1 day or a week, delaying your purchase can end up saving you a lot of money.
7. Try A No-Spend Challenge
A no-spend challenge is when you designate a certain time period where you only spend on your living expenses. During this challenge, you don’t spend anything on nonessentials. In other words, you’ll pay to cover your rent or mortgage, utilities, phone bill and any other necessities, but you’ll skip take-out orders, going to the movies or splurging on a new pair of shoes.
This challenge allows you to prioritize responsible spending and save money on purchases you don’t need to make. Any money you don’t spend can go toward other goals, like paying off your student loans or building up your savings account.
8. Remove Your Saved Card Info
Many of us know how easy it is to order online with just a click of a button – your card information is saved and ready to go. To make it a bit more difficult, remove your card information from anywhere it’s saved. That way, when you want to order an item, you’ll have to reenter all your card information.
This gives you a moment to consider whether this purchase is really worth the money and the time spent reentering your information. When the process is no longer effortless, you might second guess an impulse purchase.
9. Unsubscribe From Your Favorite Retailers
Sometimes you have no intention of spending money, but an email pops up showing you a promotion on one of your go-to buys. You might as well stock up, right? Retailers are only getting smarter – and they document your purchases and send hard-to-ignore promotions for your favorite products.
This is why it’s crucial to unsubscribe from text alerts and newsletters from your favorite stores. If you aren’t aware of a sale, you won’t fear missing out on it.
