Everyone’s done it—you pop into a shop for one thing and end up leaving with a bunch of things you didn’t plan to buy. Spontaneous spending is one of the major obstacles to saving money, and it can easily disrupt your financial plans if you’re not cautious. The good news is that breaking the impulse spending habit is possible, and with a little self-control and a few practical tips, you can start increasing your savings and making smarter financial decisions. The key is to pinpoint the reasons behind your spending and shift those behaviors with smart, savings-focused actions.
The first step to curbing impulse spending is to create a budget and follow it. Knowing exactly how much money you have available for discretionary spending each month can help you avoid the impulse to purchase items impulsively. When you see something you want to buy, wait before buying—give it a day before pulling the trigger. This gives you time to evaluate whether you actually need the product or if financial advice it’s just an urge. Usually, you’ll find that the desire to buy fades, and you’ll avoid spending money needlessly.
Another useful idea is to limit your exposure to temptation. If buying online is your challenge, remove yourself from mailing lists and remove saved payment details from your favourite retail sites. If you tend to spend impulsively in person, avoid bringing your credit cards and use only cash. By putting limits on your ability to spend, you’ll have more time to consider what you’re buying and avoid succumbing to spontaneous purchases. Overcoming impulse spending may take time, but the benefits over time—more savings and less financial stress—are worth the discipline.