Do you buy stuff suddenly without planning (impulse buying)? This might help

Published: May 26, 2018 at 10:58 am

Impulse buying refers to the sudden purchase of goods and services without planning or without evaluating if it would be useful. It is the same as the sudden urge to pick up a packet of namkeen or sweets just because we have seen it! If you are worried about how you or someone you care about buy stuff, give this method a try. It might work for at least expensive purchases.

Impulse buying has a lot in common with impulse eating. So at least one remedy has a lot in common and is well known: delay gratification. There is, however, one key difference. Delaying the purchase does not mean avoidance and that is what this post is about.

There is a common myth that if you close your nose and eyes, you cannot tell the difference in taste between an apple, an onion and a potato! Some people cannot, but most of us can tell the difference. Give it a try! The origin of this myth is the fact that smell plays a big role in taste and satisfaction.

For example, those who have just given up sugar and/or started on a low-carb high-fat diet often feel the temptation to eat spiced up carbs or sweets. The urge to give in might go away if we spend some time sniffing the food. Obviously, those who have poor self-control will give in, but it worth a try. This is delay gratification by embracing the presence of what we desire and not by avoidance.

A similar strategy might (note, again I only say might) work with impulse buying. Today it is so easy to buy stuff without stepping out of the house. We so many products, so much choice within each product type and so many ways to buy. However, we should also keep in mind that information about the product features, its pros and cons are also easy to access. There are online reviews for most medium-ticket prizes.

Perhaps it is an age thing, my first instinct to search for reviews is on Google and click on articles. Younger people prefer to search straightaway on youtube – smart move! So each time anyone in the family has an urge to buy something “expensive”, we will have read or watch reviews, compare the specifications within and across brands and understand why something costs more or less.

If we do this “sniffing” for a few days, we understand how to use the product, when to use the product, what it cannot do. The impulse to process it and our perception of its value as sensed by advertisements change significantly.

If after this exercise, we still think the product would be of value or use to us, we go ahead and buy it without the guilt (which often sets in later).  I have done this for many purchases big, medium and small- my wife’s smartphone, a professional quality tripod, her DSLRs, camera lenses, my son’s toys etc.

Every single time that we did this, we went from “that is nice, I want to possess it NOW!” to “hmm there are better products out there at a lower price” or “maybe I don’t really need this now”. Delay gratification by embracing the object of desire has done wonders for us. It may or may not help save money, but it keeps the regret away. Money is there only to be spent, but we must at least try and spend it well.

Many people want to know how to teach their kids money management. I think all we need to do is to teach them delayed gratification via product research. Next time they want something expensive, the first step is to discuss the budget and when we are going to make it. If we need to save up for it, then we can get them involved. The comes the product research. Let them do the searching and make a presentation. Then a purchase is made.

There is an extreme situation that I would like to add here. I know many parents who deprive children of their wants (not needs). This can be extremely harmful to the child. If they get the impression that their parents will not buy what they want, they might stop communicating with them reg personal and emotional issues. So it is important to strike a balance – buy what they desire (with research) but not spend beyond our means

What I have discussed above will work for reasonably expensive purchases. Impulse buying could also involve repeatedly making small purchases. Eating out too often is a common example. I would think a different approach is necessary here. As I don’t have this problem, cannot comment on this.

If you have overcome impulse buying (small/big) do share how you went about it. 

Do share if you found this useful
Share your thoughts on this topic at the  Reddit freefincal_user_forum

Reach your financial goals like a pro! Join our 1600+ Facebook Group on Portfolio Management! You can now reduce fear, doubt and uncertainty while investing for your financial goals! Sign up for our lectures on goal-based portfolio management and join our exclusive Facebook Community. The 1st lecture is free!
Want to check if the market is overvalued or undervalued? Use our market valuation tool (will work with any index!) or you buy the new Tactical Buy/Sell timing tool!
About the Author Pattabiraman editor freefincalM. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. since Aug 2006. Connect with him via Twitter or Linkedin Pattabiraman has co-authored two print-books, You can be rich too with goal-based investing (CNBC TV18) and Gamechanger and seven other free e-books on various topics of money management. He is a patron and co-founder of “Fee-only India” an organisation to promote unbiased, commission-free investment advice. He conducts free money management sessions for corporates and associations on the basis of money management. Previous engagements include World Bank, RBI, BHEL, Asian Paints, Cognizant, Madras Atomic Power Station, Honeywell, Tamil Nadu Investors Association. For speaking engagements write to pattu [at] freefincal [dot] com
About freefincal & its content policy Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on developments in mutual funds, stocks, investing, retirement and personal finance. We do so without conflict of interest and bias. Follow us on Google News Freefincal serves more than one million readers a year (2.5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified from credible and knowledgeable sources before publication. Freefincal does not publish any kind of paid articles, promotions or PR, satire or opinions without data. All opinions presented will only be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)
Connect with us on social media
Our publications

You Can Be Rich Too with Goal-Based Investing

You can be rich too with goal based investingPublished by CNBC TV18, this book is meant to help you ask the right questions, seek the right answers and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now. It is also available in Kindle format.
Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want Gamechanger: Forget Start-ups, Join Corporate and Still Live the Rich Life you wantThis book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at low cost! Get it or gift it to a young earner

Your Ultimate Guide to Travel

Travel-Training-Kit-Cover-new This is a deep dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, how travelling slowly is better financially and psychologically with links to the web pages and hand-holding at every step. Get the pdf for Rs 199 (instant download)
Free android apps