We’ve all been there: standing in line at the checkout aisle and spotting a chocolatey treat. It’s tempting to grab one, toss it on the conveyor belt and enjoy it on the drive home. In this case, a lack of impulse control affects our diet. But with our finances, impulse purchases can have a bigger impact on our savings and make it more difficult to reach our goals.
New furniture. Designer sunglasses. The latest and greatest gadget. Impulse buys come in all shapes and sizes, and as one member of our VyStar Savings Challenge Facebook group recently shared, they can be a source of anxiety.
That’s because impulse buying is driven by emotions, habits and even the way our brains are wired. The good news is that with awareness and a sound strategy, we can make more intentional financial choices.
Why do we give in to impulse purchases?
Impulse buying isn’t just about lack of discipline. Studies have shown it’s linked to how our brains process rewards. When we see something we want, our brain releases dopamine — often known as the “feel-good” chemical. This creates a temporary sense of excitement and urgency. Our brain chemistry is part of the reason why retailers use limited-time offers and eye-catching displays. Other common triggers for impulse spending include:
Stress or boredom: Have an upcoming exam at school or presentation at work? Shopping can be a temporary distraction. The same goes for if you are looking for the excitement of something new.
Social influence: Seeing friends or influencers buy something makes us want it, too. This is especially true in the age of social media.
Accessibility: Saved credit card information and one-click ordering make purchases almost effortless.
Simple ways to improve impulse control
The key to breaking the impulse-buying cycle is to introduce small barriers between the urge and the action. Here are three effective strategies:
1. Use the 24-hour rule
Before making an unplanned purchase, wait 24 hours. For bigger purchases, you may want to give yourself 48-72 hours. This time allows you to evaluate whether it’s something you really need or just a passing urge. Another way to avoid making unplanned purchases is to unsubscribe from store emails, turn off app notifications and avoid browsing shopping websites out of habit.
2. Set spending limits
One principle you can learn about in our Financial Fitness modules is the 50-30-20 rule. This is where 50% of your income goes toward needs, 30% goes toward wants and 20% goes toward savings or debts. You may have to adjust your percentages based on your unique financial situation, but the point remains the same. Take a clear-headed approach to determining the percentage of your income that can go toward “wants” — and once you have hit that threshold, use tools like our Card Control app to prevent additional purchases.
3. Pay with cash
Individuals often spend less when using cash instead of credit or debit cards. That’s because the act of physically handing over money makes the transaction feel more real. Using cash can also help establish guardrails. If you enter a grocery store with $100 in hand, you know you have a hard cap on your budget. That chocolatey treat then becomes a bit easier to avoid.
Similarly, be very cautious of using services that allow you to buy items now and pay for them over time. These services make it easy to splurge up front and worry about the rest later. This may sound appealing but can result in serious issues if you use this short-term flexibility to spend beyond your means or if your financial situation suddenly changes. It’s important to be honest with yourself about your finances when deciding what you can spend — now and in the future.
Take a smarter approach to spending
Here’s a quick exercise you can do to learn more about yourself. Grab a pen and paper and try to write down your last 5-10 impulse buys and how you were feeling at the time. Bored? Stressed? Stimulated by social media? Understanding your own triggers can be helpful.
If you find you’ve been bored lately, seek out a new hobby such exercising, reading, gardening or crocheting. If social media is a problem, consider removing the apps as you retrain your brain.
Impulse control doesn’t mean cutting out all spending. It’s about being more mindful. By recognizing what triggers impulse buys and making small-but-meaningful changes, you can keep more money in your pocket and make purchases that truly align with your goals.