Hi Reader,
Have you ever bought something unplanned and later wondered, Why did I do that?
I walked into a big box store for one small tool. Somehow I spent $110.00. Damn… impulse spending sneaks up on us. Retailers know exactly how to make it happen.
I know, I am not alone on this. Impulse spending isn’t just about money, it’s about psychology.
Our brain is wired to seek instant gratification. Oftentimes at the cost of long-term financial health.
The Psychology Behind Impulse Spending
🧠 Dopamine Rush – Anticipating a new purchase triggers dopamine, the brain’s feel-good chemical. This rush makes you feel excited and happy, even before you complete the purchase. The problem? This feel-good is temporary, and once it fades, you might feel regret.
🔬 Example: You spot a pair of designer jeans on sale. Even though you don’t need them, the idea of owning them triggers dopamine release. Your brain tells you, This will make me happy! So you buy them, only to later realize they weren’t worth the cost.
🛍 Emotional Regulation – Shopping acts as a temporary stress reliever, much like comfort food. Buying something new feels like a solution. However, this is a short-term emotional fix. It doesn’t actually address the root cause of your feelings.
⚡ Cognitive Biases – Sales tricks, like “limited-time offers,” exploit our brain’s fear of missing out. Our brain has built-in decision-making shortcuts. The shortcuts can work against us when it comes to spending.
Scarcity Effect – When an item labeled “Only 2 left in stock,” your brain perceives it as more valuable. This triggers a fear of missing out (FOMO).
Anchoring Bias – Seeing an original price of $200 crossed out and replaced with a $99 “deal”. We are tricked into believing we’re making a smart financial move. Even if you wouldn’t have spent that money otherwise.
🔬 Example: You see an ad for a smartwatch originally priced at $500, now on sale for $250. Even if you never planned on buying a smartwatch. The perceived deal makes you feel like you’re “saving” money. Although you’re actually spending it.
Common Triggers That Lead to Impulse Spending
Knowing why you impulse spend is the first step. Next, identify your personal triggers. The situations that make you most vulnerable to unplanned purchases.
- Retail Therapy – “I had a tough day. I deserve this.”
🔬 Example: After a long workday. You scroll through Amazon and buy a new kitchen gadget you don’t need. Just because it feels good at the moment.
- Social Influence – Seeing a friend buy something makes you want it too. Social media bombards us with images of people living their best lives. The latest gadgets, clothes, or experiences are tempting. This creates a subconscious pressure to keep up—even if it means spending money you didn’t intend to.
🔬 Example: You weren’t thinking about upgrading your phone until you saw an influencer review the latest model. Now, suddenly, your perfectly functional phone feels outdated.
How to Outsmart Your Brain Before Buying
How do you stop impulse buying before it happens? Here are some coaching and science-backed strategies to outsmart your brain.
🛑 Pause and Identify the Emotion – Are you buying out of stress, boredom, or excitement?
⏳ Delay the Decision – Give yourself 24 hours to let the emotional impulse pass.
📊 Reframe the Purchase – Ask: Would I rather have this now or financial security later?
If emotions (not needs) are driving your spending, walk away. Studies show that delaying a decision reduces impulsivity.
Instead of impulse-buying, write down the item you want and revisit it later. If, after a week or two, it still feels like a good decision, then buy it.
Final Thought
Your brain is powerful, but so is your self-awareness. By recognizing the mental triggers behind impulse spending, you can make choices that truly serve you—both emotionally and financially.
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🎓What I Have Learned
make mindful spending a habit, one thoughtful decision at a time. Bobby Clark
📝Knock out these money-related tasks now to help you finish the month strong
- Celebrate! Celebrate any financial successes of the 1st quarter.
- Now is the deadline to fund your traditional or Roth retirement account to count as a prior year contribution.
- File your taxes - income tax deadline this month
📖Money IQ - Your chance to gauge your money knowledge
IQ Question
What is a good way for a teenager to build credit?
A. Use buy now, pay later to make purchases and pay them off on time
B. Wait as long as possible to get a credit card.
C. Open a checking account for minors as soon as the bank allows.
D. Become an authorized user on the credit card of a parent with good credit.
📢Testimonial
Bobby
I am very grateful to you for believing in me. Many people give words of encouragement enough to feel like they did their part to offer support. You Bobby went further and invested your time and patiently guided me into a place where I became confident in what you already realized in me. I know this journey continues but with your investment, the path is a little clearer. I will be forever grateful for your kind words, prayers, and coaching. EWJB
Thanks for reading this far.
Thanks for your time and kindness.
Stay healthy, motivated, and wise.
Celebrate.
😀See you April. 15th!
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