How to Take Control Over Your Impulse Spending

Do you consider yourself an impulse spender? Almost all of us are subject to at least a few of those spur-of-the-moment decisions.

We'll suddenly decide “let’s eat out tonight.” We'll declare that those pricey clothes “would look great on me, and I need them now.”

The problem is that many times we can't really afford these impulse buys. Times are tough. Maybe we're supposed to be saving more and controlling our spending. But how do we do that when we're impulsive buyers?

If you're subject to the occasional burst of impulse buying, don't worry, you have plenty of company. A recent Harris Poll of 2,000 American adults found that nearly all Americans—94% to be exact—admit to spending impulsively.

The survey found too, however, that impulse spending for many people results in financial difficulties, sometimes even major problems.

The poll, conducted for budgeting app YNAB, found:

• Almost two-thirds of those who spent impulsively regretted the decisions they made to do so.

• Impulsive spending caused half of those polled to delay major financial goals, including paying off debt, saving for retirement, or building an emergency fund.

• Many Americans buy impulsively because they are afraid of missing out. We're afraid the price will go up if we fail to buy NOW, or the item will no longer be available if we think too long about it.

• More than half of impulsive spenders use credit cards to pay for their impulsive buys.

• More than half of impulsive spenders have suffered from debt over the past year as a result of their impulsive spending.

• Nearly half report that they sometimes feel occasional stress because of their impulse buying.

• Almost seven in every 10 Americans say they are tempted to spend more impulsively during the holiday months (October to December).

• About half of those polled said emotional fulfillment was the leading cause of their taking part in impulse buying.

Gaining Control

There is hope, however. With an understanding of what it is that's driving you to buy impulsively and how it fits in with your spending, you'll be able to gain more control over it.

First off, it's important to recognize that an occasional bit of impulse spending is not necessarily bad. After all, keeping strictly to a budget can be almost strangling. You're allowed to have a little fun with your money every now and then.

Take, for example, a trend in social media that's become known as the “treat yourselves“ culture. In this culture, people treat themselves impulsively in order to receive a quick burst of happiness.

The culture is popular on TikTok where the term “treat yourself” has more than 55 million views.

Gets Out of Hand

The problem, however, is that impulse buying can get out of hand. Those little bursts of happiness start taking place more and more often, and soon enough, it sneaks up on you.

The next thing you know, your money has been all used up on things that you didn't really need, and you have little left for the essentials like groceries or gas.

The result for many is that all that impulse buying causes them to delay meeting major financial goals and can result in financial stress.

Finding Balance

It's important, therefore, to balance the two. On the one hand, treating yourself can bring you happiness, but on the other hand, too many treats can cause you financial woe.

You should spend money on those things that bring you happiness and also align with your priorities and goals, says money expert Ashley Lapato of @theorganizedwallet, who has 84,000 followers on TikTok.

Sometimes, Lapato says, it means that you indulge in a little treat because you believe you earned it. Example: “Let’s celebrate by eating dinner out tonight.” Or perhaps you had a bad day, and you needed cheering up.

People regularly feel as though impulse shopping means that they're bad at handling their money, Lapato adds, but that's not the case.

Indeed, having the financial discipline to set aside even a few dollars each month to treat ourselves provides us with permission to enjoy life, spend without guilt, and stay on track with our financial goals in the future, Lapato says.

Debt and Regret

Nevertheless, although 6 in every 10 Americans follow a budget or a spending plan, impulse buying can still cause debt and regret.

There must be a better way for Americans to cut back on their financial stress, to make progress financially, and still leave room for guilt-free spending. After all, who doesn't appreciate the occasional serotonin boost of a little treat? Lapato asks.

How to Handle Impulse Buying

It's unrealistic to think that you can cut out all impulsive spending, says Jesse Mecham, founder of YNAB. He adds that he doesn't want to live in a world where spending money fails to be fun.

Here is what he suggests is the key to obtaining a handle on the stress caused by impulse buying:

• Be more aware of where every dollar you spend is going.

• Be honest about how often your spend money impulsively. Once you know when you spend impulsively, you will be in a better position to get a handle on it.

• Create a flexible and realistic plan going forward. When you realize where and when you are spending impulsively, note the occasions and you will be able to draw up a plan for yourself. Such a plan might include only occasionally (or never) going to the stores where you always spend impulsively or avoiding certain aisles in a large store. You also could limit your impulse buying to low-priced items, such as a slab of chocolate. Clearly your plan would be peculiar to your shopping habits.

Budget Correctly

Mecham says that the biggest mistake people make is not overspending; it is under-budgeting in certain categories.

Often what happens is that you go to the grocery store with a top spending limit of, say, $200 a week. You believe that fits in with your earning power and the goods that you need for the week. Every week, however, you spend above that limit. One week it might be $250. Another week it might be $270.

You become frustrated and you work out ways in which you can cut down on your spending. You feel you are impulse buying and that is chasing up your spending.

The problem, however, is that you need to be spending, let’s say, at least $250 to feed yourself or your family. You need, therefore to adjust your budget and work out where the money will come from.

You will then be in a better position to stick to your budget and be able to set realistic limits for yourself on impulse buying.