For many people, shopping serves as an outlet for stress , and there are those who buy everything in sight. And then, when they realize it, impulse purchases took a good part of the month’s budget and harmed their financial life .
Having financial organization is the key to escaping the traps of buying more than you earn. See in this article how these purchases impact your finances!
What are impulse purchases?
Do you consider yourself a balanced person who spends only what is foreseen in financial planning ? Or does your credit card statement say exactly the opposite?
If you’re on the impulse buying team, don’t worry, you’re not alone in this.
But do you know how to identify what an impulse purchase is? In general, these expenses are made without any planning. The person sees the product or service, and buys it without thinking about whether he can afford it or even if the item is necessary.
Another characteristic has to do with emotions , the person is sad, frustrated or stressed and ends up spending more to have those minutes of satisfaction.
The point is that with this financial health can be harmed. As expenses are neither calculated nor programmed, in general, they will become a debt and a headache in the future.
People want to save money , but they can’t resist purchases that are just a click away. The ease of spending, nowadays, is another issue to be considered. Why make dinner when you can just order something ready in the app? A new outfit? Just choose. Such a product looks wonderful in advertising, but you don’t even know if it has a practical use? We want too.
And there goes the entire budget for that month, or for the next few months, depending on whether the purchase is made in installments.
impact of impulse purchases on financial life
Of course, everyone likes to shop, and there’s nothing like a new item in the house to make you happy. The issue here is not even spending per se, but impulsiveness. Everything has a time and place, but impulse buying can have serious consequences.
According to a survey carried out by the SPC (Credit Protection Service) and the CNDL (National Confederation of Shopkeepers), 8 out of 10 consumers admitted that they took advantage of promotions to make impulse purchases.
And there’s more, 33.2% of respondents buy impulsively at the supermarket. That is, consumer behavior is to buy without analyzing the need.
Have you ever stopped to think about where you spend the most without thinking? A good measure is to write down your expenses and analyze your credit card bill carefully . With this, you will clearly see where your money goes.
Impulsive behavior can lead to debt and uncontrolled finances.
According to the CNC (National Confederation of Trade in Goods, Services and Tourism) 70.9% of families ended 2021 indebted. And that’s where the danger lies.
How much of your medium and long-term debt could be avoided if you stopped to think before you buy? Let’s see some tips to not fall into the temptation to spend more than you can!
How to avoid impulse purchases?
To begin with, you must make a financial organization . Knowing your financial life is a good way to assess whether or not you can purchase a product or service.
Remembering that here we are not talking about the essential items. We are only referring to impulse purchases.
For example, if in your budget you allocate 10% of your salary to leisure, it’s okay to spend part of that on a concert ticket. This is within your budget.
Now check out the tips to avoid impulsive spending:
– Do a self-assessment
Are you one of those people who can’t see the word “promotion” that goes out buying everything? Is there a specific item you buy every time you go to the market, even if you don’t need it? Do any feelings make you leave shopping and lose control?
Anyway, find out what makes you spend without thinking and use strategies to not repeat the mistake. That is, invest in self -knowledge , understand how you handle money and why you shop on impulse.
– Analyze your purchases
Stop and think for a while. Do you need this product? Are you going to use it? Do you have to buy today?
You will often realize that it was a spur-of-the-moment thing, or that you can save money and buy the cash another day. Make a habit of thinking before you buy.
– Have goals and objectives
One of the things that can help you stay focused is having a goal. Knowing where you want to go is easier to strategize to achieve your dreams.
And there’s another advantage, you’re more motivated since you won’t be losing anything by not spending today. You’re saving to fulfill a bigger goal up front!
– Invest in financial planning
Make good financial planning. Know your finances, have a budget where everything is directed. Write down expenses, have goals, know exactly how much you earn.
Separate money for essential bills such as water, electricity, condominium. But also leave a part reserved for personal wishes. Oh, and also don’t forget to think about the future and start saving and investing !