Gone are the days when impulse buying simply meant grabbing a candy bar or magazine at the checkout line. Nowadays, social media has made it incredibly easy to make quick purchases with just a click, regardless of whether it fits within your budget. Unfortunately, this trend is causing financial strain for many Americans.
A recent BW survey, conducted online by The Harris Poll, revealed that over 1 in 5 Americans (22%) have made impulse purchases that have had a significant impact on their finances in the past year. Here are three strategies to help combat the temptation to shop impulsively.
1. Prioritize saving before spending
Approximately 1 in 6 Americans (16%) admitted that they spent more on impulse buys than they contributed to their retirement accounts most months in the past year. To avoid this, consider automating your savings before allocating money for spending.
For example, if your employer offers a 401(k) plan, set up automatic contributions (e.g., 10%) and then pay your bills. This way, you can spend what’s left after saving. Similarly, you can automate contributions to an IRA or savings account right after payday to ensure your financial goals are met before indulging in non-essential purchases.
2. Cleanse your social media feeds
Out of sight, out of mind. When trying to save money and reduce impulsive spending, it’s crucial to minimize triggers. Unfollow and unsubscribe from accounts and emails that tempt you to shop hastily, such as those offering discounts or showcasing products you desire.
While you may still encounter ads on social media, eliminating known triggers can help limit impulsive shopping behavior.
3. Delay gratification with a wishlist
In today’s digital age, it’s incredibly easy to buy something the moment you desire it. To curb impulsive purchases, consider creating a wishlist with a waiting period. When you feel the urge to buy something non-essential, add it to the list along with the date and reason. Revisit the list after a set period to determine if the item is still a priority.
By introducing a delay between wanting and buying, you may find that your desire diminishes over time. If the item still holds value to you, you can make the purchase if it aligns with your financial goals.
Methodology
The survey conducted by The Harris Poll on behalf of BW involved 2,090 U.S. adults aged 18 and above. The sampling accuracy is within +/- 2.5 percentage points with a 95% confidence level. For detailed survey methodology and inquiries, contact [email protected].
BW does not guarantee the accuracy or reliability of the information provided in this article. Readers are advised to use this information at their own discretion. The content should not be considered indicative of BW’s future performance. Any forward-looking statements are subject to risks and uncertainties.
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