Impulse buying: Can you justify it?
If you can’t control the urge to buy online, make sure you budget for impulse buying. How?
- Make a list to buy
- Weigh your needs versus your wants
- Calculate the value of an item over time
- Create budget for ‘personal perks’
- Remember the items you regret buying
It’s payday, and you try your best to stretch your budget to last until the next one. As you surf the internet, an animated ad for a big red-tag sale catches your eye. Against your better judgement, you click the link to “just check out” the prices, until you see an item that seems too good to pass up. Your resolve is broken; you decide to buy it and say “I needed it anyway.”
Impulse buying happens to just about anyone. It occurs when you are lured to buy items without thinking about its long-term value. You could have been compelled because it was on sale, that it was a rare find, or it came with some extras like a free item or free delivery.
Impulse buying can adversely affect your budget, especially if you can’t control your urge to buy. It is among the top reasons why you overspend and you fail to follow your budget.
But don’t worry. There are ways to control your urges whenever you see a red tag sale and to make real savings.
- Make a list of things to buy- A list should remind you that you only have eyes for things you need. As you track your expenses, you need a clear mind to ensure that you don’t go beyond your budget.
- Look at what you have versus what you need- Do items in your home ensure a sustainable lifestyle? If yes, then you don’t have to buy something that would not add value to your lifestyle.
- Calculate an item’s worth to you over time- Some things can have real value for money if you are able to use them frequently or over longer periods. This is hard to measure, but try to give yourself some time to consider an item’s usefulness in the long term.
- Set a budget for “personal perks”- If you think you can’t control the urge to spend, then you might as well give in. Set a specific amount that you can use to spend for anything that you fancy. Be strict though and avoid spending beyond this budget.
- Remember the items you regret buying- Looking at all the items you bought by impulse, which ones did not live up to expectations? Surely, there are several. Look back at these items and ask yourself why you initially thought they were worth the money and make a mental note to avoid similar purchases in the future.
Fighting your natural impulses can be daunting, but knowing that you have those urges is half the battle. Developing the discipline to control it is the next half, and ultimately, your savings will benefit the most.
To help you manage your money, you can learn more about Metrobank Online or the Metrobank Mobile App.
This article is part of a collection of stories and practical financial tips that are published with the goal to help people learn from the experiences of others, and to pick out lessons on personal finance and sound money habits beyond the pandemic.
