Impulse buying – how to limit it and regain control?

Many of the issues clients bring to me during financial coachingare related to excessive or impulsive shopping and a lack of spending control. Here are a few practical tips.

1. Feed your brain before you shop. Don't go shopping while hungry: when you're in that state, you'll tend to put more items in your cart than you planned, and you'll be more easily tempted by the candy bars at the checkout. When you're hungry, your decisions will be less thoughtful! This also applies to non-food items, like a TV or shoes. Before you head out to shop, remember to eat something, or at least bring a juice or something else that will quickly provide enough calories to fuel your brain.
2. Extend the time between wanting to buy something and reaching for your wallet – especially your virtual one. Instead of completing the payment immediately, give yourself time to think it over. This is particularly helpful for items like clothing, cosmetics, and electronics, as you usually don't need them right this second. A day or two later, you often find you don't want them nearly as much. And if you still decide you need the item and have the money for it, then go ahead and buy it.
3. Set a time limit for your shopping. When you browse through dozens of items in stores—especially online—you'll eventually be tempted to buy something. After all, top experts work hard to ensure we spend as much time as possible shopping and consuming beyond our means. There are thousands of goods out there that would be nice to have, but that doesn't mean you have to buy them! One way to regain control over the time you spend shopping is to set a predetermined time limit, for example, 30 minutes, and set an alarm to remind you when your time is up. Don't let shopping be a way to kill boredom.
4. Using shopping to boost your mood is a trap! The fleeting pleasure of the purchase is often followed by financial problems, feelings of shame and loss of control, and conflicts with loved ones. The way our brain works—especially the reward center—can lead us to give in to impulses, habits, emotions, and the desire for instant gratification. Develop more constructive ways to regulate your emotions. This is especially important for people with a financial identity known as the hedonist. I wrote about several types in my article Financial identity and its impact on life
5. Don't build your self-worth on the goods you own! It will be unstable, built on fragile and illusory foundations. It will also lead to constant comparisons with others, resulting in low self-esteem and a life lived under pressure. Furthermore, such comparisons will drag you into toxic materialism, which lowers happiness. You can find more about this mechanism in my article Why toxic comparisons lower life satisfaction

Neuromarketing – why we fall into shopping traps

Neuromarketing is the study of how our senses and brain function influence our purchasing decisions. As Martin Lindstrom argues in his book "Buyology: Truth and Lies About Why We Buy," the subconscious controls about 85% of consumer behavior. Companies invest vast sums to nudge customers toward purchases, using the latest techniques to boost sales and sway buying decisions.

Merchandising specialists are also hired. Their job is to entice customers to buy through strategic product placement on shelves and by designing the entire store layout, including traffic flow, lighting, music, scent, decor, colors, and product displays. What you see at eye level is exactly what retailers want you to reach for.

However, if you look at items on lower shelves, which are less prominently displayed, you may find that the price is more attractive and the quality is just as good as the products at eye level.

How to build a shield against marketing tactics?

If you are planning a major purchase, such as a home appliance or a car, write down a list of criteria that matter to you and assign them weights—for example, on a scale of 1 to 5, where 1 is less important and 5 is critical. Then, evaluate the brands you are considering based on how well they meet your requirements.

1. Don't overdo the deep research. Even if you gather hundreds of pieces of information about dozens of products in your category and current promotions, you won't be able to process or rationally compare that much data to objectively choose the best option. After looking at too many refrigerators, cars, or hotels, you will feel irritated, tired, and overwhelmed by information. Ultimately, your purchase might turn out to be less satisfying than if you had only considered a few (or at most a dozen) options.
2. Pay with cash. Most people have better control over their spending when they pay with cash rather than a card. Taking money out of your wallet takes more time than tapping a card or phone at a payment terminal, which provides a moment for reflection. Furthermore, paying with cash makes it easier to stay aware of how much you are spending. And when you run out of cash, you have to make an effort to go to an ATM. This again provides extra time for emotions to settle and for you to consider whether you really want to buy the product at that moment. Paying by card feels painless, at least until you look at your bank statement...
3. A good way to increase control is setting daily and monthly limits on card payments and online shopping. Of course, if a purchase is truly necessary, you can easily increase your single-transaction or daily limit in your account settings.
4. Do you ever get home from shopping and realize you forgot something? Or, conversely, do you end up buying more than you planned? Prepare a list—both for shopping in physical stores and online. This will save you time, as you will buy everything you need at once, and it will be easier to resist mindlessly adding extra items to your cart—including your virtual one.
5. Don't be ashamed to return a product if you bought it unnecessarily. Retailers know perfectly well that the "consistency trap" often makes it difficult for us to back out of a decision, including a purchase. So, instead of trying to force yourself to rationalize the purchase, simply return it—in accordance with applicable rules (consumer rights and store policies).
6. If you feel remorse or shame after shopping, instead of blaming yourself again (which unfortunately often leads to a desire to boost your mood through the very behavior you feel guilty about), it is better to reflect on what caused you to act that way again. Ask yourself: What was my mood at the time? What prompted me to make an unplanned purchase? Which types of ads or promotional activities affect me the most?

A much more serious problem than impulsive shopping is shopaholism (compulsive buying - Compulsive Buying Disorder), which is a type of behavioral addiction characterized by excessive and uncontrollable purchasing of various items, often unnecessary or in significantly excessive quantities. In this case, it is worth seeking help from a psychotherapist or psychiatrist.

You can find more about how a financial coach can support you in my article Financial coaching vs. financial consulting.