How to Stop Impulse Buying
6 Min Read | Published: October 3, 2024
This article contains general information and is not intended to provide information that is specific to American Express products and services. Similar products and services offered by different companies will have different features and you should always read about product details before acquiring any financial product.
Impulse buying can derail even the best budget. See steps you can take to help stop impulse spending and develop healthy financial habits.
At-A-Glance
- Impulse buying refers to unexpected, unplanned purchases.
- Impulse buying can derail a budget, and could lead to overspending and debt, preventing you from reaching your financial goals.
- Keeping a spending journal, implementing a 24-hour cooling period, and other steps can all help you combat impulse buying.
It’s all too easy to buy something unexpectedly without much planning or thought. If you find that you do this often, rest assured you’re not alone and there are ways to overcome this habit. Being able to make intentional purchases can help you to take better control of your finances, avoid debt, and stay on track with your financial goals. In this article, we’ll share tips and techniques to help you overcome the urge to spend and show you things that you can do instead.
What Is Impulse Buying?
Impulse buying happens when you make spontaneous, unplanned purchases. These decisions are spur of the moment and may be motivated by emotions, or they could be the result of good deals or sales that you see while you’re surfing the internet or out shopping at a local store.1 Additionally, you might engage in impulse buying due to external pressure, from your loved ones, friends, acquaintances, or even influencers on social media.
What Impulse Buying Looks Like?
There are different types of impulse buying, including:
- Pure Impulse Buying
Pure impulse buying is when you make decisions based on emotions. For example, if you’re at the grocery store and notice chocolate in the checkout aisle, you may suddenly be in the mood for something sweet and buy the chocolate.2 - Reminder Impulse Buying
Reminder impulse buying might happen after you see an item and are reminded that you need it. For example, if you’re at the mall and looking for new jeans and you walk past the hats, you may remember that you’re in the market for a new hat for an upcoming vacation and buy it.3 - Suggestion Impulse Buying
Suggestion impulse buying is usually tied to a marketing message. For example, if you’re at a restaurant, you may see a picture of a new, more expensive entree on the menu and order it instead of your usual salad.4 - Planned Impulse Buying
Planned impulse buying often occurs due to promotions or discounts for items you may have contemplated buying. For example, if you’re on social media and see a post that says the couch you were interested in is now 25% off, you might take the plunge and buy it.5
Tips to Avoid Impulse Buying
Fortunately, you can avoid or significantly reduce impulse buying with these strategies:
- Identify and Avoid Triggers
Be honest with yourself and understand when you’re most likely to impulse spend. If you know you tend to make unplanned purchases when you’re bored, for example, you can try to avoid websites and stores during these times and find another way to combat your boredom. - Pay Attention to Your Spending
Paying attention to your spending can help to give you more insight into why you are doing it. A spending journal can create a record of your purchases, so you know exactly where your money is going.6 To start, jot down what you buy and when you buy it. With a record of your spending habits, you may be more likely to question future purchases and avoid impulse buying. - Pause and Reflect Before Spending
Before you go ahead and make an unexpected purchase, stop and ask yourself whether it’s really worth it. You may decide to pass on the $5 coffee and go home and brew your own coffee at home instead. - Commit to a 24-Hour Cooling Off Period
When you see an item you want to buy right away, take 24 hours to “cool off.” During these 24 hours, you can do more research on the item and figure out if you truly need or want it. You might find that the initial thrill of buying something fades away after 24 hours.7 - Set Spending Limits
With a realistic budget in place, such as the cash stuffing budget you’ll be less likely to make impulse purchases that take a toll on your finances. As long as you allocate a certain amount of money for “fun” or “indulgences,” you’ll find it easier to limit how often you splurge spontaneously. - Save Up and Spend Wisely
In addition to a budget that you stick to, you can open a high-yield savings account (HYSA) so you can save up for larger, planned purchases.
- Spend Time in Other Ways
Any time you have the urge to impulse spend, look for another, more affordable way to spend your time. This may mean taking up a new sport, like biking, hiking, or swimming, or it could mean going for a walk around the neighborhood, catching up on a favorite television show, or cooking a delicious meal.
Did you know?
A financial accountability group can allow you to connect with others who are prone to impulse buying and receive the support you may need to make smart financial decisions.8
How to Stop Impulse Buying
Identify and Avoid Triggers
Pay Attention to Your Spending
Pause and Reflect Before Spending
Commit to a 24-Hour Cooling Off Period
Set Spending Limits
Spend Time in Other Ways
Frequently Asked Questions
One of the key differences between compulsive shopping and impulse buying is the internal motivation behind the purchases. Impulse buying is typically spontaneous. It may involve emotions but may also be done in response to external factors. Compulsive shopping, on the other hand, may be more inwardly motivated. Compulsive shopping may be planned and done as a way to stave off certain feelings like stress or anxiety.9
A store’s environment, background music, and sales associates can all play a role in driving shoppers to buy impulsively. Sales and promotions can also play a role.10
Instant gratification refers to the rush of excitement that helps someone to rationalize sudden purchases. Retailers may take advantage of this sensation and use it to encourage people to buy.11
The Takeaway
Impulse buying may lead to debt and make it more difficult to buy a house, save for college, retire, or achieve other financial goals. To reduce it, you can identify and avoid triggers, keep a spending journal, pause and reflect before spending, commit to a 24-hour cooling period, set spending limits, and spend time in other ways.
1,2,3,4,5 “Impulse Purchases Are Costing Consumers Almost $2,000 a year — Here’s How to Cut Back,” CNBC
6 “How to Keep a Spending Journal,” Quicken
7 “5 Ways to Avoid Impulse Buying,” Bankrate
8 “How to Stop Impulse Spending,” Experian
9 “The Difference Between Impulsive and Compulsive Shopping,” VeryWellMind
10,11 “Impulse Buying: Why We Do It & 9 Ways to Encourage It,” Shopify
Anna Baluch is a personal finance writer from Cleveland, OH. She enjoys helping people from all walks of life make smart financial decisions. Her work can be seen on Credit Karma, Forbes, LendingTree, Insurify, and many other publications. Connect with Anna on LinkedIn.
All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.
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