152. Impulse shopping and retail therapy ft. Al from Two Broke Chicks
Dec 14, 2023
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Joining the hosts of The Psychology of your 20s is Al, co-host of Two Broke Chicks podcast. They discuss impulse shopping and retail therapy in our 20s, the emotions behind buyer's remorse, and how to be wiser with money. Find out the dos and don'ts of shopping and overspending, and the psychology companies use to encourage impulse buying.
Creating a budget and understanding our financial situation is crucial for managing money in our 20s.
Recognizing the psychological tactics used by brands can help avoid impulse buying and retail therapy.
Prioritizing essential expenses, resisting societal pressures, and considering long-term financial goals contribute to effective money management in our 20s.
Deep dives
Summary of main ideas
Managing money in our 20s can be challenging, especially when it comes to impulse buying and overspending. To overcome these challenges, it is important to start with budgeting and understanding our financial situation, including income and expenses. Creating a budget template can help track expenses and identify areas where we can cut back. We should also be mindful of the items we truly need to spend our money on, distinguishing between wants and needs. Taking control of our finances in our 20s sets the foundation for long-term financial well-being.
Avoiding impulse buying and retail therapy
Impulse buying and retail therapy are common in our 20s, driven by factors like social media, trends, and emotional urges. To combat these impulses, it is essential to recognize the psychological tactics used by brands, such as flash sales, limited-time offers, and free shipping incentives. By being aware of these marketing strategies, we can avoid falling into impulse buying traps. Instead of relying on retail therapy, we can explore alternative methods of self-soothing, like creating Pinterest boards for virtual shopping or engaging in activities that bring genuine joy without the financial burden.
Managing money and making wise financial decisions
Effective money management involves assessing our income and expenses, creating a budget, and tracking our spending habits. We should prioritize essential expenses, such as rent, utilities, and groceries, while being cautious about unnecessary purchases. It is also crucial to resist the pressure of societal expectations and trends, taking time to evaluate whether a purchase aligns with our values and long-term financial goals. By being proactive and disciplined in our approach to money management, we can develop healthier spending habits and secure our financial future.
Identifying Impulse Purchases
An impulse purchase is characterized by a sudden desire for an item that hasn't been previously considered necessary. To differentiate between impulse purchases and genuine needs, it is recommended to sleep on the decision. If the item is still on your mind the next day, it may be worth considering. However, if the thought of the item only arises when seeing online ads, it is likely an impulse purchase. True needs tend to be items that solve a problem or fulfill a specific purpose, such as buying mascara before going out for drinks or realizing the need for a pair of socks.
Investing in the Right Areas
In your 20s, it is important to invest your money wisely. Good investments include focusing on people and experiences rather than material possessions. Allocating money for spending quality time with loved ones and creating meaningful memories can be more valuable than expensive items. Additionally, it is advised to prioritize investments in essentials like a comfortable home, good quality everyday items, and healthcare. By analyzing cost per wear and opting for second-hand purchases, one can strike a balance between financial responsibility and personal enjoyment.
Impulse shopping in an experience we've all had, the feeling of buying something you know you don't really need, but you want it desperately in the moment. Often during this decade we begin earning "adult money" for the first time and that means we can begin spending as a way to emotional regulate. Had a bad day? Buy a new pair of shoes. Been through a breakup? Shopping spree. There are so many ways that companies encourage this behaviour through flash sales and low stock sales, creating a sense of urgency and getting us to spend. So, in today's episode we break down the psychology behind impulse shopping and retail therapy.
We are joined by Alex from the hit podcast, Two Broke Chicks, to provide us with the dos and don'ts of shopping and overspending in our 20s, breaking down the emotions behind buyers remorse, and how to be wiser with your money during this decade.