Spending money can feel good, right? If it gets out of control, it can impact many parts of your life. There are several things that can contribute to your spending habits and much of it comes down to psychology.
So why do we spend money?
The benefits of saving your money aren’t realized until later. But buying something helps us feel good right now. Impulse purchases can sometimes be a way to fill an emotional void. Maybe you had a rough day, or just want a little something to boost your spirits.
But much like other forms of instant gratification, the happiness from an impulse buy will likely fade.
Spending is easier than ever
How long does it take to buy something online? With many online retailers boasting features like “one-click ordering” and “rapid checkout”, it could take just a few seconds. These days, you can buy something online without any thought and without leaving the couch.
Social media ads from influencers can also impact impulse spending. One minute you’re scrolling through cat videos, the next you’re buying a pair of athletic pants that were promoted by one of the accounts you follow. One at a time, these online purchases may not seem like much. But over time they can really eat into your savings.
Have you ever been out with your friends and suddenly the group decides to get another round of appetizers or drinks? Even if you were still full or not thirsty, you may have joined in to avoid being left out. Wanting to fit in can be another reason for impulse spending.
Receiving gifts feels good, right? So it’s only natural that you might buy someone a gift to make them happy. Or maybe you want to improve their mood before you ask them for a favor. Either way, pleasing others is another thing that can lead to impulse spending.
Whether you want to create a budget, look at your spending habits, or you’re ready to make a savings plan, we can help. Fill out the form below and one of our financial advisors will reach out to schedule a free one-on-one appointment.