Strategies for Reducing Impulse Buying
In his work, Darcy Bergen facilitates financial literacy workshops for interested members of the public. In addition to recommendations on long-term savings vehicles and strategies, Darcy Bergen offers examples of lifestyle changes that can improve financial health, such as reducing impulse buying.
Impulse buying can cause significant financial problems and prevent people from building up adequate savings for emergencies and retirement. Here are a few effective strategies for curbing unplanned spending and saving more money:
- Impose a waiting period. Many people are enticed into buying an item because of a sale or other offer. However, spending any money on an unnecessary item is not a good deal. Financial experts advise consumers to wait at least 30 days to purchase big-ticket items. This cooling-off period can help determine if the item is a want or a need.
- Use cash. People are much more likely to overspend when they use a credit card. For this reason, consumers should shop with the exact amount of money they need to make a planned purchase. This strategy also helps people remain on budget for essential items, such as food and clothing.
- Avoid e-commerce websites. With endless inventory, coupon codes, and seamless payment options, shopping online can be especially tempting to impulsive shoppers. Experts recommend unsubscribing to all retailers’ email lists to avoid being notified of new sales.
Investment advisory services offered through Horter Investment Management, LLC, an SEC-Registered Investment Advisor. Horter Investment Management does not provide legal or tax advice. Investment Advisor Representatives of Horter Investment Management may only conduct business with residents of the states and jurisdictions in which they are properly registered or exempt from registration requirements. Insurance and annuity products are sold separately through Darcy Bergen. Securities transactions for Horter Investment Management clients are placed through E*TRADE Advisor Services, TD Ameritrade, and Nationwide Advisory Solutions.
