This article was reprinted with permission from NerdWallet.
The COVID-19 vaccine has been made available in the U.S. and there have been increased opportunities to spend impulse on experiences and items that you didn't enjoy during the pandemic.
Consumers are spending more because they have more freedom. According to the National Retail Federation, retail sales increased 15.5% in the first seven months 2021 compared to the same period in 2020.
You may have experienced new spending needs as a result of some restrictions being lifted. This could include returning to work, visiting family and friends, or engaging in back-to-normal activities. It is important to set financial goals and not allow the unimportant to threaten your finances.
These are five strategies that will help you avoid impulse spending.
1. Give it a day.
Brad Klontz, a Colorado-based financial psychologist, recommends waiting 24 to 48 hours before you spend if you feel an overwhelming desire to buy.
Ask yourself, "Can I afford it?" What are my plans for where it will go? What will I feel tomorrow about the purchase? He asks, "How will I pay for this?"
He says that a pause can calm the emotional brain and activate your rational brain, which holds you responsible for tomorrow.
A store's return policy can be useful if you are unable to wait. If you have a credit card with a return protection feature, it may be an option to provide a backup. If the card offers this benefit, you can file a claim within a certain time frame and get a refund if the retailer's return policy is not followed.
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2. 2.
Depending on your spending habits, credit cards can be beneficial or detrimental. Klontz claims that credit cards are more expensive than cash and people tend to spend more. Klontz suggests that you keep a cash reserve for areas where you are likely to spend too much, such as dining out.
Avoid impulse buying by not storing credit card information online or on apps. Kathy Longo is a certified financial planner who also heads Flourish Wealth Management in Minneapolis.
It's easier to say, Ill have a look at it later, because I wont go to my purse to get my credit card. This can make it easier to reconsider a purchase.
Check out these credit card habits that survived the pandemic.
To avoid interest and save money, you should pay off all credit card purchases immediately. Consider a card that offers a 0% intro APR for large purchases.
3. Pick up curbside
Since the outbreak of the pandemic, many retailers have offered curbside pick-up. Lauren Miller, a Massachusetts resident uses this option to keep her debt-free journey on track.
She says that avoiding the interior of the store will prevent you from seeing seasonal products and marketing strategies. These items can lead to impulse purchases.
You may be charged by some retailers for curbside pickup. It is worth it to save yourself the risk of impulse buying.
Longo suggests that you do an online price comparison if you feel the need to visit a store. She suggests that you check to see if there is a similar item at a lower price, or if it is on sale.
4. Allow yourself to indulge
For those purchases that are a must-have, make sure you have a personal budget. Miller initially set aside $20 for impulse purchases when she first began to reduce impulse spending. As she began to embrace the habit, her $20 per-store allowance gradually decreased to $5. The total cost doesn't affect her budget as she only visits four stores per month.
She says that impulse buying is less tempting because I know I have the right to make impulse purchases if I want to.
Check out: How to build a budget for beginners
If your allowance is exceeded, you can either take the amount out of your next month's budget or redeem credit card rewards for cashback or statement credit, if that makes sense. Some credit cards reduce the value of rewards if you redeem for certain options.
If you find yourself constantly spending beyond your budget or getting into debt, it might be time to review your spending habits and talk to a financial counselor.
5. Find an accountability partner
A accountability partner can help you analyze your reasons for purchasing. You don't have to give them an opinion. They can just listen. Klontz states that the goal is to have you talk about it and then make a decision that aligns well with your values and goals.
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He recommends deciding on a spending limit worth discussing. An accountability partner may be able to help you if your purchase exceeds $100. To keep yourself accountable, you can also use your social media followers. Miller is a YouTube content creator and shares her plans for sticking to a shopping list.
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Melissa Lambarena writes about NerdWallet. Email: mlambarena@nerdwallet.com. Twitter: @LissaLambarena
