The Secrets of Fighting Impulse Purchases

by Ace on June 23, 2010

You walk into a shopping mall with rough list of things you “need” to buy. But then you walk out with an arm full of “stuff,” and your wallet $200 lighter. Admit it, this has happened to you right?

You ever wonder why?

You ever think to yourself that there’s gotta be a way to prevent it from happening?

With as much as 70% of all in store purchases being impulse purchases, it can put a huge dent in anyones budget. Being aware of why you do it is just as important as how to prevent it. Make yourself better prepared for impulse purchases. Learn how it happens and use these tips to prevent it. Your wallet will thank you.

Why You Fall for Impulse Purchases

An impulse purchase could happen for any number of reasons. Here are 4 reasons.

1. You’re a Target

Every sign, sale, and ad is specifically designed to make your money jump out of your wallet. Sales are a great example of how retailers key into our psychological insecurities to make a buck. One study[pdf] even showed that 75% of consumers would be motivated to make an impulse purchase due to a sale price.

Sales tug at our emotions for a number of reasons. First, we’re instantly led to believe that we’re getting a great deal. Second, we fear we might miss out on something. Third, we begin to focus more on how much we’re saving rather than how much we’re spending.

2. A Cover-up for Something Else

When you feel the urge to go shopping, check in with your emotions. Moolanomy mentioned a great system in their recent article. They recommend using the acronym HALT, which stands for hunger, anger, lonely, and tired. Before your go on any shopping spree make sure that you check in with HALT. If any one of those conditions are met, then shopping may just be an outlet for something else.

3. Self-Justification

You’ve been working hard, right? You hardly ever treat yourself to anything nice. Don’t let self-justification guide your purchases. It’s easy to get into the mindset that you deserve something, but make sure that your decisions are well grounded before jumping into a purchase.

4. What You Owns Defines Who You Are

No it doesn’t. We live in a world where people constantly judge based on what you own. What kind of car do you drive? How big is your house? What kind of clothes do you where? It’s important to tune out the noise that society creates and remember that it’s more than what you own the defines who you are.

How to Fight an Impulse Purchase

Here are 4 tips that will help you repel impulse purchases.

1. Make a List

This seems like a terribly cliche idea, but let’s face it, it works. In my experience whenever I wonder through a shopping mall without any real direction or cause, I end up getting myself and my wallet into trouble. Humans love systems. A list is a very simple system. Buy what’s on the list and only what’s on the list. There’s no room for wiggle and no potential for gray area. If you think of something else that you need while you’re shopping. Write it down, and come back for it next time. This will give you time to brood over your “need.”

If you’re going grocery shopping, it’s typical for super markets to try to trick you with 3 for $5 type deals. To combat this write down the quantity of each item you intend to purchase. This will relieve your mind from having to battle through the decision process or how much to buy.

2. Spend Cash if You Lack Self-Control

Depending on what stage your are with your credit card usage, you may find difficulty keeping that credit card in check. If that’s the case, no problem. Leave the plastic at home and take only the amount of cash that you intend on spending. As you make your way through your shopping trip the depleting cash in your wallet will act as a simple reminder that you’re on a budget.

3. Shop with Money Conscious Friends

If you have friends that are also trying to live on a budget, great! Shop with them and you’ll have one more barrier to spending money on an impulse purchase. Tell them how much you intend to spend before you start shopping so that they can play the role of the angel on your shoulder.

4. Think About Why You Must Have It

Before you buy something, think carefully about why. What value does it have to you? How much will you use it? You owe it to yourself to ask these difficult questions before taking the plunge. If you can successfully evade the entire grill down, then you’ve earned it.

It may seem difficult at first, but putting the brakes on impulse purchases can do wonders for wallet. The best part is that it gets easier and easier to resist it once you’re aware of your tendencies. Do you have any other tips that’s helped you fight the impulse purchase? Share yours below!

(Photo credit: austinevan)

Update: This post was included in the Carnival of Personal Finance #263 over at the Suburban Dollar