Impulse Spending

Impulse spending is a form of buying goods with little to no thought. What might seem like a good or desirable purchase in the moment can quickly turn into a wasted use of hard earned money. This is why impulse spending is arguably the worst use of money possible. There is a famous set of advice that coincides strongly with impulse spending. The phrase, “think before you speak” is applicable in a sense that you should think before you spend. Often before making large purchases of thousands of dollars or more, people often do research on what they are spending their money on. It is important to take time and research even when making smaller transactions. While not all transactions are worth an in-depth analysis, most purchases need some thought put behind them. That being said, impulse spending often occurs when more money is available than usual. Often an urge or spur of the moment desire sprouts. It is crucial to notice such trends in one’s own behavior in regard to spending. This is likely why on average the everyday American spends $5,400 annually on impulse purchases.

Luckily there are ways to help correct or adjust such spending behavior. Some banks offer apps and portals to allow you to get notifications every time you spend or take-out money. Seeing money physically leave your account can be a determinant against impulse spending. Additional software and companies such as Acorn offer services that prevent you from spending and push you towards saving. Saving even small amounts of money overtime

can build up to a nice amount of capital. Having capital opens doors and allows for opportunities that are not always available. Therefore, it is important to know what to do with the funds once you manage to save up. Read more articles on investing to find out more on what to do with your saved funds.