606 - How to Stop Impulse Buying

In this episode, we look at how to stop impulse buying. 

Ad: http://blinkist.com/tinyleaps

The Problem

In 2017, Americans spent $240 billion—twice as much as they’d spent in 2002—on goods like jewelry, watches, books, luggage, and telephones, according to the Bureau of Economic Analysis.

Spending on personal care products also doubled over that time period. Americans spent, on average, $971.87 on clothes last year, buying nearly 66 garments, according to the American Apparel and Footwear Association. That’s 20 percent more money than they spent in 2000 adjusted for inflation.

At the same time, Americans are taking up more space. Last year, the average size of a single-family house in America was 2,426 square feet, a 23 percent increase in size from two decades ago, according to the Harvard Joint Center for Housing Studies. The number of self-storage units is rapidly increasing as well.  There are around 52,000 such facilities nationally; two decades ago, there were half that number.

Digging Deeper

Why do we buy so much stuff anyway? Research shows there are many reasons why we feel compelled to buy what we really don’t need.

• Buying provides a sense of security of the unknown.
• We get a rush of dopamine over the initial purchase.
• We feel the need to impress – Keeping up with the Joneses.
• Having a kingdom of stuff makes us feel important.

And the one we will talk about today – advertising and its effect on us.

The Solution

So how do we deal with this?

Here are a few ways to get your buying impulse under control.

· Push the pause button in your mind, instead of the buy now button.  Logically contemplate what draws you to that product in the first place.  Was it the lure of the ad, or do you really need it?

· Quiet your consumer brain.  Take a deep breath and let the moment of absolutely having to have this shiny new thing pass.

· Make sure you know and understand that you cannot buy happiness.  Happiness does not come from an item. If you are not happy now, nothing you will buy can change that.

· Do the things that will really make you happy. Much of our purchases are done to make us feel better – find another way to feel better.  Get up and go for a walk, call a friend, or read a book, or learn a new recipe.

One tangible step: Implement a two day rule. If you are making a purchase that isn’t an absolute necessity, wait two days before purchasing. Doing so can remove you from the initial impulse and allow logic to take over.