Impulse Spending: How to Overcome the Urge and Boost Your Savings

Impulse Spending: How to Overcome the Urge and Boost Your Savings

Blog Article

We’ve all been there—you walk into a store for one thing and walk out with a basket filled with products you weren't expecting to get. Buying on impulse is one of the largest challenges to building savings, and it can sabotage your budget if you’re not mindful. The good news is that getting over impulse buying is possible, and with a little focus and a few simple strategies, you can start putting more aside and making smarter financial decisions. The key is to pinpoint the reasons behind your spending and replace those habits with healthier financial practices.

The first step to curbing impulse spending is to make a financial plan and adhere to it. Knowing exactly how much money you have available for discretionary spending each month can help you fight the temptation to make unplanned buys. When you see something you want to buy, take a break—pause for 24 hours before making a purchase. This gives you time to think about whether you actually need the product or if it’s just an unnecessary desire. More often than not, you’ll find that the urge to purchase disappears, and you’ll keep your money in your pocket.

Another great tip is to limit your exposure to temptation. If buying online is your challenge, remove yourself from mailing lists and remove saved payment online financial advisor details from your favourite retail sites. If you tend to spend impulsively in person, avoid bringing your credit cards and use only cash. By putting limits on your ability to spend, you’ll have more time to think about your purchases and avoid succumbing to spontaneous purchases. Breaking the habit may take time, but the long-term rewards—more savings and less financial stress—are well worth the effort.