One Minute Money Tip – Control Spending by Avoiding Impulse Purchases

One Minute Money Tips are designed to be quick easy reading that can save you lots of money!

control spendingDid you know that 80% of impulse buying is because the item is “on sale”?  Let's be honest, sales are designed to get you to spend money plain and simple.  Does 20% off sound like a good deal if I would tell you that the item was marked up 200%  Designer jeans don't cost any more to make yet can cost up to 650% more than a common brand of jeans.

So why do we buy things we didn't intend to buy in the first place?  The short answer is we have difficulty controlling impulse buying and this can lead to serious financial problems down the road. By recognizing what factors influence your spending decisions, you can start to control spending.

What are impulse buying triggers?  Well that can be different for each of us.  Shopping for groceries when you are hungry is a big no no yet most of us do this on a regular basis.  A recent study by Alison Jing Xu of the University of Minnesota shows that not only are you more likely to buy more food when you are hungry but you are also more likely to buy other things as well.

The best way to determine what triggers your overspending is to analyze your purchases over a period of time.  You may discover that you make most of your unplanned purchases on the weekends when you are out with your friends at the mall.  You may need to get a little creative and suggest your friends meet you for a free concert at the park next weekend instead of meeting at the mall.  Leaving credit cards at home and only bringing cash is another way to help reign in overspending.

Readers: When was the last time you bought something on impulse?

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4 Responses to One Minute Money Tip – Control Spending by Avoiding Impulse Purchases

  1. Emmy @ Club Thrifty 05/06/2016 at 7:09 am #

    Recently I have committed to leaving items in my Amazon shopping cart for 24 hours. It is amazing how much I have saved as a lot of the time I realize I just don’t “need” the items.

  2. Bill @ The Money Professors 04/29/2016 at 5:38 pm #

    Good tips. It is amazing how we can suddenly “have to have something” when 15 minutes before we didn’t even know the item existed! If have lived without it for 20, 30, or 40 years – does it really need to purchased right this minute?

  3. Derek @ 03/22/2016 at 6:26 am #

    I try to inhibit my impulse purchases by doing two things: 1) making sure I carry limited to no cash in my wallet, 2) trying to limit the amount of advertising I expose myself to.

    These two seem to really work for me to keep impulse purchases to an absolute minimum.

  4. Billy 03/20/2016 at 9:44 pm #

    I’m usually pretty good about not buying things on sale. I trained myself not to buy things unless I absolutely need it. If something’s on sale, it doesn’t matter if it’s on sale: if you don’t need the item, you just spent x amount of dollars on something that is not needed.