Last week I wrote about a major defining moment in my life - making the decision to retire early. Today I want to write about a more subtle defining moment, but something that has had a positive impact on my finances - breaking the pattern of impulse buying.
I wish I could remember where I originally read this pearl of widom so I could give credit: if you feel your heartbeat quicken, if you are excited with the prospect of a purchase, you are probably engaging in an impulse buy. Purchases that are planned rarely bring on the same level of excitement. Start to notice your own patterns and see if you find it is true; it certainly is for me. I noticed when I purchased a car a few years ago that I didn’t feel a flush of excitement. This was a very large purchase for me, so I had spent a considerable amount of time reading and researching before I made a decision. You would think that the purchase of something as significant as a car would have thrilled and excited me, but when I finally took the plunge, I felt more of a sense of control, that I knew what I wanted and how much I could spend. I carefully shopped and spent within those parameters. That’s not to say that I’m not happy with the car; in fact, I’ve been surprised how much joy this car brings me (I drove my last one for 19 years, so needless to say there are many new, nice features that now come standard on a car). But the thrill of an impulse purchase has a whole different feeling for me.
In the past I’ve been as guilty as anyone falling into the trap of the impulse buy. I’d see something I maybe never even knew existed, and suddenly I felt excited that this was something I wanted, needed, and it would probably make my life better. As long as I wasn’t going into debt to purchase it, I figured I could afford it and after all I worked hard, didn’t I deserve it? I’m sure I made many such purchases in my life, but the last one I recall really put an end to it. I’m a little embarrassed to tell this story, but here it is:
Years ago I started collecting a few teddy bears. At first they were the kind you could buy at the store, but I “graduated” into artist-made bears. They are made from high-quality materials like mohair, alpaca, and wool and can have the most wonderful expressions. I would pose a couple here and there around the house, and they give it a nice, warm feeling. These bears are normally purchased directly from the artist online, by mailorder, or at a show. One day I attended a high-end show, not planning to make a purchase, when I came to the booth of one of my favorite artists. She makes magnificent, large teddy bears that come with a hefty price tag. Then I spotted the centerpiece of her booth - an enormous (think several feet tall) off-white gorgeous bear with the most endearing expression. The price tag? $900. And suddenly that feeling of excitement came over me: this bear was meant to be mine. I was working hard at a good-paying job, I hadn’t treated myself to anything lately, so I figured I even deserved such a treat. Excitedly I plunked down my credit card and this incredible bear was mine.
Well, when I got home, I felt almost sick to my stomach. What was I thinking? I had just spent $900 on a TEDDY BEAR! As beautiful and well-made as he was, I could not look at him experiencing a sinking feeling in the pit of my stomach. I gave it a couple of months, but couldn’t get past that bad feeling so I ultimately sold the bear and took about a $200 loss. Surprisingly, I don’t regret the loss as much as you might think, because that purchase cured me of impulse buying. Period. It simply does not happen to me anymore. Because now, anytime I feel myself getting excited over a possible purchase, I remember the teddy bear.
How about you, have you experienced something that stopped or slowed your impulse buying? If you still have a problem with containing the urge to buy, I invite you to recall my $900 teddy bear the next time you feel the thrill of the purchase come over you. It might save you a few bucks.
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Tags: budgeting, money management, shopping, spending
October 27th, 2008 at 4:36 pm
I haven’t had an experience like yours which made me stop impulse buying, it just kinda happened when I finally decided that I wanted to secure my future under my own terms and conditions.
I will use your teddy bear to help me stop however until I do it myself, I suspect the feeling (in the pit of your stomach) won’t be the same. Once I’ve done that ‘mega-but-unnecessary’ purchase myself, that’s when I’ll really stop impulse buying. (The again, I already feel sick at some of the smallest purchases, so I think I’m on the right road.)
Andy @ Retire at 40´s last blog post..The Power of Snowflaking
March 16th, 2010 at 2:12 am
Lucky for me cause I’m not an impulsive buyer. Whenever I go out, I make sure that I only have exact money to accomplish all my tasks outside. Plus a little extra cause I might want to buy something on my way. This is a proven strategy of mine that can help me in managing my finances.