Impulse Spender? 3 Ways to Cut Back

Rotating ads on social media with the exact item you’ve had your eye on. The ten extra items in your grocery cart not on your original list. Taking advantage of that on-sale item that would be perfect in your living room.

It’s impossible not to feel the pull of impulse spending. Shopping has never been easier or more convenient. And if you consider yourself an impulse spender, you’re not alone. According to a recently published report, the average consumer spends $5,400 a year on impulse purchases and up to $324,00 in a lifetime.  

With the holiday season fast approaching, it’s a good idea to get a handle on these unplanned purchases now. Financial expert Paul DeMink, Vice President at Town and Country Bank, shares some tips on how to curb the habit.

1. Distinguish between wants versus needs. Do this on your own or with a partner if you share finances. “You will often be able to make room in your budget and curb impulse buying by just asking yourself that question,” DeMink says. “While the strategy seems simple enough, it can be easy to mix up the two. When you focus on just your needs, it allows you to save for the wants and reach financial goals.”
2. Give yourself freedom to make a purchase but set limits. “Set a specific dollar amount for miscellaneous spending and then stick to it,” DeMink says. “Determine what fits your finances and then make it a line item in your budget. This helps eliminate the guilt that often follows impulse buying.”
3. Plan, plan, plan. “Know before you go into the store exactly what you plan to buy and how much you plan to spend,” DeMink says. “If you need to grocery shop, plan to eat before to help cut down the possibility of putting those extra items in the cart. If a great deal catches your eye, have a plan in place to wait at least 24 hours before purchasing. Leave the item in your online cart overnight and see if you still have the impulse to buy the next morning. Often when you come back to something, you determine it’s not really a need or a necessary purchase.”

If you want to get serious about your budget, check out Town and Country’s free Online Financial Management tool. It’s a customized dashboard that allows you to sync bills and purchases all in one place. Knowing what’s coming in and going out leads to greater financial control and better overall choices – like not grabbing takeout on your way home!