By Jasmin Brown

BDO Debt Solutions

Impulse Spending

Sep 29, 2022 | 2:22 PM

“The views and opinions expressed in this article are those of the author and do not necessarily reflect the position of Pattison Media and this site.”

Do you ever throw a last-minute chocolate bar or energy drink onto the counter at the grocery store? Or go to the mall to buy new pants for work, and end up with shoes, shirts and jewellery as well?

Or do you ever just feel tired and pick up takeout for supper instead of making something with the groceries already in your fridge at home?

If you answer yes to any of these questions, then it means that you are no stranger to impulse spending. It tends to happen quickly and often without even thinking, but it is something we should all be aware of because impulse spending can take a major toll on our finances.

What is Impulse Spending?

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In the most basic terms, impulse spending is making any purchase that you weren’t planning to make. If it is not planned, and wasn’t in your budget, then it is an impulse buy. Impulse buys can range in size from a package of gum at the grocery store to a brand new boat from the tradeshow!

Why Do We Impulse Shop?

Many studies have been done to help determine why people spend impulsively, and most identify certain psychological factors that are involved. But even if I just take a step back and think about it, there seem to be many reasons that people would be inclined to impulse shop. Some things that come to mind are:

· Shopping as a hobby

· Using a purchase to make us feel better after a hard day

· Not wanting to forego a good sale, even if it is something we don’t need

· Being exposed to so much advertising and social media that encourage spending

· Having easy access to goods and services through online shopping

· Experiencing the immediate gratification that comes from buying

The Risks of Impulse Shopping

The most recent BDO Affordability Index shows that 54% of Canadians are living paycheque to paycheque. That is an indication that any off-budget spending can create financial problems for many people. Some of the biggest risks with impulse spending are as follows:

· Over-spending on unnecessary items which makes it difficult to pay the bills

· Feeling regret after the initial high of making a purchase

· Relying on credit to fill the gap between spending and income

· Having bad credit due to overspending, reliance on credit, and inability to make payments

· Having no ability to build up a savings account or emergency fund

Tips for Stopping Impulse Buying

Here are some suggestions on things that you can do to limit impulse spending:

· Make a shopping list and stick to it

· Create a family budget to control spending

· Before making a purchase, force yourself to “sleep on it”

· Do a needs vs. wants analysis before purchasing

· Replace shopping with another activity such as walking, reading, painting, going to the gym etc.

If you are having trouble making ends meet each month, finding the right debt solution can help. Visit the BDO Debt Solutions website for more information about bankruptcy, or call 1 855 BDO DEBT to book a free, no obligation consultation.

Jasmin Brown is a Senior Vice President overseeing the insolvency practice in Saskatchewan. She is committed to providing creative and practical debt solutions with empathy, understanding and professionalism to help people overcome their financial difficulties.