Impulse Spending – Why We Do It and Its Dangers.

Credit card payment, shopping

Impulse spending is something many of do for various reasons. Here are some reasons

  • Emotions: Most times impulse spending are done when people are experiencing strong emotions, such as happiness, sadness, boredom, or anxiety. These emotions, especially the negative ones, can trigger a desire to feel better, and shopping can provide a temporary distraction or boost in mood.
  • Limited self-control: Limited self-control, which can make it difficult to resist temptation when they people something they want. This may be due to a lack of self – discipline or a history of impulsive behavior.
  • Social pressure: Social pressure or peer pressure can also play a role in impulsive spending. For example, people may feel pressured to keep up with the Joneses or to fit in with their peers, leading them to make purchases they might not otherwise make.
  • Sales and promotions: Sales and promotions can create a sense of urgency and scarcity, leading people to make purchases they actually need.
  • Lack of planning: People may make impulse purchases simply because they haven’t planned their spending carefully enough. This can be especially true when shopping online, where it’s easy to make purchases with just a few clicks, without taking the time to consider whether the purchase is truly necessary or affordable.

Impulse spending can be disastrous if it gets out of control. Here are some of the problems created by impulse spending.

  • Debt: Impulse spending can quickly add up, and if not careful, it can lead to significant debt. This can be particularly devastating if they are already carrying balances on credit cards or loans.
  • Financial stress: If people are spending impulsively, they may not be sticking to a budget or saving for important financial goals, which can lead to increased financial stress and anxiety.
  • Regret: People may experience regret after making an impulse purchase, particularly if they realize that they didn’t really need or want the item. This can be particularly true if they spent a significant amount of money on the purchase.
  • Opportunity cost: When people spend impulsively, they may be missing out on opportunities to use that money in other ways, such as investing, saving for retirement, or paying down debt.
  • Impact on relationships: If people’s impulse spending is causing financial stress, it can also impact their relationships with others, particularly if they are sharing finances with a partner or family member.

While impulse spending may provide a temporary boost in mood or satisfaction, it can have longer-term negative consequences that people should be aware of.