Why Do We Keep Buying Things We Don't Need?

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Do you often find yourself buying things you don't need? Impulse purchases can quickly drain your finances and derail your savings goals. In this newsletter, we'll explore some effective strategies to help you curb impulse spending and take control of your finances.

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You're walking through the market after a grocery haul. It has been a tiring day. You spot the Third Wave Coffee outlet across the road. A cup of iced Americano won't harm anyone, you think.

Once you're inside the coffee outlet, iced Americano is no longer the only thing that you order. Next, you know, you're sitting at a table ordering a Pesto Chicken Croissant. It's clear when you could've ordered a simple iced Americano, the bill now amounts to ₹863.42.

And there my dear readers is an impulse purchase.

Understanding Impulse Spending

Impulse spending occurs when you purchase without careful thought or planning. It's often triggered by emotions, such as boredom, stress, or a desire for instant gratification. Common impulse purchases include:

• Unnecessary gadgets: The latest smartphone, smartwatch, or gaming console.

• Clothing and accessories: Trendy items that you may only wear a few times.

• Food and beverages: Unhealthy snacks, sugary drinks, or dining out too often.

• Non-essential subscriptions: Streaming services, online shopping memberships, or gym memberships you don't use.

Strategies to Curb Impulse Spending

To break the cycle of impulse spending, implement the following strategies:

1. Create a Budget: A well-crafted budget helps you track your income and expenses. Allocate specific amounts for different categories, such as groceries, transportation, and entertainment. This will help you stay within your means and avoid unnecessary purchases.

2. The 30-Day Rule: Before making a non-essential purchase, wait for 30 days. This cooling-off period can help you determine if you truly need the item. Often, the initial urge to buy fades away over time.

3. Shop with a List: Create a shopping list before heading to the store or browsing online. Stick to your list and avoid buying items that aren't on it. This will prevent you from making impulse purchases.

4. Use Cash Instead of Cards: Paying with cash can make you more mindful of your spending. You can physically see your money depleting, which can deter you from unnecessary purchases.

5. Unsubscribe from Promotional Emails: Unsubscribe from promotional emails and newsletters from retailers. These emails can tempt you to buy things you don't need.

6. Practice Mindfulness: Pay attention to your thoughts and feelings while shopping. If you're feeling stressed, bored, or lonely, take a break and return later.

7. Reward Yourself Wisely: Instead of rewarding yourself with material possessions, find non-monetary ways to celebrate your achievements. Spend time with loved ones, pursue hobbies, or volunteer your time.

8. Track Your Spending: Monitor your spending habits to identify areas where you can cut back. Use budgeting apps or spreadsheets to track your expenses and analyze your spending patterns.

9. Set Financial Goals: Having clear financial goals can motivate you to save money and avoid impulse purchases. Whether it's saving for a vacation, a down payment on a house, or retirement, having a goal in mind can help you stay focused.

10. Find a Spending Buddy: Partner with a friend or family member who shares your financial goals. You can hold each other accountable and provide support and encouragement.

Remember, managing your money wisely is about building healthy habits over time. The more you practice mindful spending, the easier it becomes to resist those impulsive temptations and achieve financial freedom.

Stay disciplined, keep your goals in sight, and you’ll see the difference in your bank balance—and your peace of mind.

Recommended Reads:

• GenZs Ready to Level Up Your Financial Game?

• Where Did My Money Go?

• Adulting on a Budget: Myth or Mission Possible?