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Think about the last time you cleaned or rummaged through your room. You probably stumbled upon an item or two that you haven’t seen or used in a while but spent a lot of money on.
These purchases likely left you with buyer’s remorse. As shopping becomes increasingly convenient, it gets harder to resist the impulse to buy things you don’t need.
One way to save yourself – and your wallet – from impulse buys is to be aware of their potential causes. Learn all about these spending triggers and why it’s important to identify them.
What are spending triggers?
A spending trigger is anything that gives you the urge to spend money. It might be an emotion you’re having or a situation you’re in.
Some people tend to spend based on impulse then try to justify it logically to make them feel good about the purchase.
That’s why it makes sense to understand the real causes behind your spending. It helps you approach your finances with more transparency.
- Emotional spending triggers
The act of shopping in response to emotions is so common that there’s a popular term for it: retail therapy. Both positive and negative emotions can become spending triggers.
Some people spend when they’re happy or have a reason to celebrate and reward themselves. They might buy things while thinking, "I deserve this” or "I worked hard for this.”
Others may soothe their sadness through shopping or splurging on unplanned leisure activities to recharge their bodies and minds.
Even boredom can cause you to scroll through shopping apps to pass the time. Spending money becomes an outlet for expressing or temporarily easing what you feel.
- Situational spending triggers
Impulse purchases also result from certain circumstances. They can be a case of being in the right place at the right time (or wrong place, wrong time depending on how you look at it).
You might’ve passed by your favorite store and seen that they’re having a big sale right when you just got paid. Or maybe you’re scrolling through social media and an ad catches your eye.
Other common triggers include social situations where you feel the pressure to spend, or having shops located near your home or workplace that tempt you to buy non-essentials just out of convenience.
Why it’s important to know your spending triggers
Your money habits, personality, and interests are unique and so it’s up to you to identify the exact spending triggers that affect you the most. Here’s why learning them matters:
1. Awareness is key to prevention
When you’re able to identify triggers in real time, you’ll have the opportunity to re-evaluate before spending your money. You may even start foreseeing the triggers and avoiding them before they can influence you.
2. Your wallet will thank you
It might be easier to take proactive steps to stay within your budget once you recognize the emotions and situations that prompt you to spend.
These steps could include steering clear of places or apps that can cause mindless shopping. You may also consider putting savings first after getting paid so you’re less likely to stray from your budget.
3. You’ll increase your chances of achieving long-term money goals
When you lessen the risks of acting on impulse, you can allocate your money more effectively. Instead of only chasing short-term wants, you can start prioritizing long-term financial goals like buying a house, paying off debt, or investing for retirement.
Ultimately, understanding your spending triggers helps you become more intentional with the way you use your money.
You’ll be better equipped to deal with potential weak spots whether it’s by learning to say no, setting aside a small budget for luxuries, or finding healthier ways to cope with emotions.
