Posted on 0 comments

The Psychology Behind Impulse Buying And How To Overcome It

So you have a personal loan app EMI coming up this month, and you don’t have enough funds as you impulsively purchased a fancy new pair of sneakers. This usually happens a lot these days. Impulse buying has become a major problem, which later causes financial problems, especially for the young generation. In this article, we will unearth the root cause of impulse buying and how to steer clear of it. 

What leads to impulse buying?

Emotions take the driving wheel when it comes to impulse buying. Think about it: we buy things when we feel sad, stressed, or even happy. It can be a tub of ice cream to help us get through a tough day or buying our favorite food to celebrate an achievement. In such situations, we usually ignore the spending limit and go overboard. Adding to that, attractive marketing ads also lure us to buy things that we don’t really need.  

It can be an expensive dress or a flashy new phone with no new features; the advertisements create that sense of urgency to get that product. It does feel great to purchase things, but later, it creates problems, like a shortage of funds to pay for existing loans from an instant personal loan app , credit card bills, and more. 

How to Overcome Impulsive Buying?

  • Do Not Carry Extra Money

Whenever you are leaving the house, avoid carrying your credit cards and set a spending limit on your UPI applications. This will prevent you from spending extra on unnecessary things. However, this should only be done in extreme cases, as a genuine need for money can arise at any given point. 

  • Create a budget

Before setting limits on your cards and UPI applications, set a monthly budget for yourself. In the budget, carefully calculate the money required to live a comfortable life. Create different sections or branch of essentials, personal loans, credit card bills, entertainment, and more. Stick to the budget and spend the allocated funds for each section. Doing so will also help to save a significant amount of money every month. 

  • Undergo Training

Since emotions drive impulse buying, you can consider research-based methods, like cognitive-behavioral therapy, to help control these emotions. This can also help you enhance your overall decision-making capacity.

  • Use Savings/Personal Loan Apps

There are various platforms, including apps for personal loan for self employed that can help to spend your earnings efficiently. Through these apps, you get financial advice, instant personal loans, and also create a budget. These apps will send an alert if you are about to overspend or exceed the budget for a given month. 

  • Be Around Supportive People

It is wise to be around people who motivate you to stay on track with your budget and also advise you against spending a lot on things you don’t need. 

Conclusion: The Bottom Line

Even if you borrow from the best online loan app, impulsive buying can be harmful if you have a bunch of EMIs and bills to pay every month. You must understand how emotion drives the need to buy things and the various ways in which it can be avoided. Remember to create a budget and set a spending limit on your cards.