How To Stop Impulse Buying

We’ve all felt the rush of seeing something we know we didn’t need, buying it on a whim, and the joy that comes with it. Whilst it might make us feel good in the moment, impulse buying can quickly drain our budget and take us further from our financial goals. Whether it’s a late-night purchase or a last-minute treat at the checkout, this spending adds up. 

Trying to stop impulse buying isn’t just about saying ‘no’, it’s about understanding why it happens and how to build long-term habits that can help us change our financial future. It helps to learn these skills from someone who has transformed their finances, but has also taught thousands of others to do the same.

With over a decade of experience in trading the financial markets, STARTrading’s founder, Lewis Crompton, has helped an amazing number of people to break the cycle of emotional spending and have a more intentional relationship with money. 

So, how do we stop impulse buying?

The process of stopping impulse buying comes in 3 steps:

• Recognising your triggers, 

• Planning out your budget, 

• Building healthier financial habits.

 Track the feelings that happen when you feel the urge to spend, set budgets in the areas you tend to overspend in, and redirect those emotions towards healthier habits. Your focus should be on acknowledging your impulsive feelings and balancing the things you enjoy with your future financial goals.

In this blog, we’ll run through some of the psychology behind impulse buying, how to recognise it, and the tactics you can use to overcome it.

What Is Impulse Buying?

According to the Cambridge Dictionary, impulse buying is defined as “the act of buying something that you had not planned to buy, because you suddenly want it when you see it”. Impulse buying is something we all do, whether it’s treating ourselves to something delicious after a hard day, or splashing out on that piece of technology after a late-night scroll, and you’re not alone! 

88% of people in the UK make an impulse purchase at least once a month, with an average yearly spend of over £600 per person.

Impulse spending can feel good in the moment, but it can seriously impact your financial health in the long run. Budgets can only take you so far, with taking accountability for habits like impulse buying being the key to success. 

Why Do We Impulse Buy?

There are a number of reasons why we might purchase something on impulse, and they typically fall into two categories: emotional and environmental.

• Emotional: When we feel bored, stressed, or tired, we often look to do something that will give us a bit of a boost. This is typically where the idea of instant gratification will come in – the quick hit of dopamine that makes us feel better in the moment, but will soon wear off.

• Environmental: These factors can have an impact when you’re shopping both online and in-store. Tempting offers, store layouts, and even personalised ads are all environmental factors that could lead you towards an impulse purchase.

How To Stop Impulse Buying

Impulse spending can make us feel really good in the moment, but this can quickly wear off, and the reality of our spending habits can set in. By spending on something you didn’t plan for, it’s likely that you’re taking away from another part of your budget, like your savings or money set aside to invest. As with anything finance-related, recognising your bad habits and making changes is intimidating, but also important to your long-term financial health.

Spotting Your Triggers

Understanding what makes you spend impulsively is the first step to reigning it in. As we’ve covered above, triggers can be either emotional or environmental. You might also be more prone to spending if you’re with friends or see something you’d like to buy right after pay day.

If you’d like to keep track of what leads you to impulse buying, try keeping a log of the things you bought on impulse and how you were feeling at the time. You could also write down the cost of each impulse buy, adding it up at the end of the month to see how much you could have saved and push you to make positive changes. 

Over time, patterns will start to emerge, helping you to pinpoint exactly what can send you into a spending spiral.

Budgeting Strategies

Strong budgets can help you save for your goals and can make it easier to stop impulse buying. In combination with the right mindset, techniques like the 50/30/20 rule can help you enjoy everything in moderation while working towards a successful financial future. 

If you tend to overspend in a certain area, like eating out or clothes shopping, set yourself a clear limit and track your spending for a certain period. From basic spreadsheets to apps designed to track spending, there are a number of ways to make sure you stay within your spending limits. Be sure to give yourself a bit of ‘fun money’ to keep some joy, but try to stay within the boundaries that will get you to your long-term goals.

The 24-Hour Rule

This simple rule is particularly effective when it comes to overcoming impulse buying habits. When you see something you’d like to buy that isn’t planned or is non-essential, pause for 24 hours. 

Allow for the instant gratification to pass and really evaluate if this item is something you actually want or need. If you still feel strongly about an item and it fits in with your budget, you can buy it! 

The difference is that you’re now making a conscious choice, instead of a decision influenced by emotion. 

Build Healthier Habits

To really overcome impulsive money habits and get back on track, it’s important that you prioritise more mindful habits. Recognising when the impulse arises and redirecting those feelings is the key to long-term change and, ultimately, financial success.

If you feel the need to buy something impulsively, try going on a walk, or even making a cup of tea. Distract yourself from the initial feelings and come back to the item with a clearer head. This doesn’t mean you have to refuse to buy anything, but try putting together a wishlist and coming back to those items after a little while. 

If you still want to buy the item, you can plan for it in your budget and keep working towards your goals.

These healthier habits are all about making it easy for you to resist an impulse buy. As you start to think more about your finances in the long term,  you’ll start to move away from the need for instant gratification. Instead, you’ll think about the experiences, freedom, and safety that a strong financial plan can provide, ultimately making the resistance to impulse buying more rewarding.

Investing

It can be extremely easy to fall into the trap of impulse buying, whether it’s a brand new gadget to keep up with trends, or treating yourself ‘just because’. Investing offers a much smarter way to use the money you would have otherwise spent and turn it into long-term gains. Here’s how investing can help you go from impulse spending to achieving your financial goals:

• Shifting Your Mindset: Investing introduces the concept of delayed gratification, allowing you to focus on the greater rewards you’ll receive later rather than short-term joy.

• Building an Impulse Buffer: Once you’ve put your money into investments, it can be harder to access immediately. This can help you to avoid emotion-driven, impulse spending.

• Replacing The Rush: Watching your investments grow can replace the feeling of satisfaction that comes from impulse spending with a sense of lasting value.

• Keeping Your Goals In Mind: For many, investing helps to fund a number of long-term goals, like buying a new home or saving for your retirement. Keeping these goals in mind can help to give purpose to your money and stop impulse buying.

Build Your Financial Future With STARTrading

Impulse buying can make us feel really good in the moment, but this is short-lived, and the impact on your financial goals is much greater.

Here at STARTrading, we’re here to break that habit and turn it into long-term success. With our expert-led swing trading course for beginners, we’ll work with you to teach you how to make smarter money decisions, improve your financial discipline, and start investing with purpose. Instead of buying things on impulse, you’ll start to use your money to invest in your future with both knowledge and confidence.

Take control of your finances today and start building your strong financial future with STARTrading. Get in touch with our expert team, or book your place on one of our courses.