By the Sun Life team
Have you made a compulsive purchase too recently? It’s not just you. Here’s how to avoid these types of investments.
Adam was buying the latest version of everything. Shoes, clothes and other widgets. In one year, he estimates that his expenses have reached five figures.
“I was in a state of mental distress without even knowing it,” he explains. I had lost control. I was in depression because of various factors in my life. Shopping was my way of dealing with my emotions. »
The pandemic is not without effect on our purchasing habits. In-store sales fell, but online shopping surged. According to Statistics Canada, between February and May 2020, online sales increased by 99.3%.
What makes us overspend? It’s not always clear. But if you’re buying to feel better, it may be a sign of a deeper problem.
Impulse buying: what is it?
Have you ever spent money out of boredom or stress, because you’re sad… or to celebrate? If so, you know what an impulse purchase is, also known as an “emotional purchase”.
According to researchers at Butler University, people make impulse purchases to feel like they’re in control. Especially during times of negative emotions or low self-esteem. The researchers’ work also indicates that spending money produces happiness hormones, such as serotonin, oxytocin, dopamine, etc.
How to manage impulse purchases?
Let’s take a look at nine ways to thwart this impulse.
- Find out what triggers your shopping rage
Take the time to figure out what makes you want to spend.
For Adam, who was going through a difficult time emotionally and mentally, shopping was a kind of therapy that helped him feel better. To find your triggers, consider journaling, especially when feeling negative emotions.
Journaling is recording what you think and feel. This can help you manage your negative emotions and therefore spend less.
“I was forced to tame my buying impulses because my behaviour was hurting those close to me,” Aaron explains. I cancelled credit cards that my wife did not have access to. We sold what was superfluous. And I tried to express the feelings that drove me to make impulse purchases. »
- Discover new hobbies
It’s a way to escape emotional triggers and spend less.
Find free or low-cost activities, such as walking, playing sports, drawing, or writing.
- Cut yourself out from quick buying modes
To achieve this, take these steps:
deactivate your PayPal account;
remove your credit card information from websites;
deactivate saving banking information;
cancel all unnecessary credit cards.
If you use cash, limit your spending by withdrawing a fixed amount. And leave your debit card at home. Collecting your cards will save you from spontaneous purchases when emotions overwhelm you. It can help you take a step back, think about your feelings, and choose another outlet.
- Create a budget that works for you
And don’t plan it too tight. A restrictive budget can cause you to spend even more. It’s always best to prepare for occasional indulgences. People prone to impulse buying and who have no other option are likely to spend more than expected. If this is your case, give yourself a little play.
You can use an online budget calculator to help you manage your expenses. The important thing is to establish a flexible budget that works for you.
- Set new financial goals
Please make a list of priorities or financial goals: it can help you resist impulse buying. For example :
to buy a house?
Go on a trip?
Are you saving for your retirement?
Whatever your goal, write it down. Keep it close by to remember when you feel like spending money.
If you’re saving for an important goal, you might consider asking your advisor for help. A Sun Life advisor can help you create the savings plan that’s right for you. If you don’t already have one, find an advisor near you.
- Take a zero-spend challenge
There are plenty of zero-spend challenges that could motivate you. Their objectives are often fixed in advance: this may be the framework for you.
Some of the most prevalent challenges include:
spend a day or a week without spending a penny;
avoid impulse purchases of clothes;
do not shop for groceries until the pantry is empty.
Regardless
