Lifestyle
Have you ever gone to the mall to buy one pair of trousers but found yourself leaving the shop 3 hours later with three pairs of trousers and four shirts, none of which you had initially planned to buy? Why does this happen?
This is known as impulse buying, a behaviour where you make an unplanned and often unnecessary purchase due to certain factors. What are these factors? There are several psychological ones that influence our purchasing behaviour, driving us to make decisions that may not always be rational or in our best interest. Understanding why we buy what we buy can help us make better decisions in the future.
The importance of smart shopping decisions
Most of us may not pay much attention to the risks of impulse buying, although it may be the main reason you’re accumulating debt, especially if you're using your credit card to make these purchases. What you might consider small purchases can add up and become significant debts that take years to repay. Even if you don't fall into the debt trap, overspending can hold you back from saving for long-term goals, such as buying a home or car or starting your own business.
In this article, we will help you understand the psychological factors and emotions that shape our shopping habits and that drive us to spend more money.
Marketing tricks
You might wonder, what does marketing have to do with our emotions? Let’s explain.
You've probably seen a TV advertisement featuring a Ramadan iftar at some point, where a family gathers around the table to enjoy their favourite juice. The next day, when you're shopping and spot that same juice on the shelf, it reminds you of that joyful family. When you buy it, you're purchasing it because it brings back those feelings about a happy family.
At the moment of purchase, you might not realise that your subconscious mind is making the buying decision for you. Believe it or not, almost every purchase you make is influenced by your unconscious thoughts and driven by a range of emotions.
For example, when you see an insurance company advertisement recommending you get health insurance for your children, your decision to buy insurance is based on your fear for your children's health and safety.
Social pressures
Imagine you've set aside 20 JOD to have dinner with friends at a restaurant. After spending the 20 JOD on dinner, one of your friends suggests going for coffee and cake. While you might not want to spend more money, you also don't want to feel left out or excluded from the conversation.
So, you will likely go along with your friends and spend more money. This is because our minds are wired to help us fit in with a group and feel a sense of belonging to our social circles. This is what psychologists call "herd behaviour." That's why, sometimes, we tend to overspend when we're with others because we begin to mimic their behaviour. This is what we mean by social pressures.
Social pressures can also manifest in other forms, such as appearances. For example, imagine that all your friends own iPhones that cost more than 900 JOD each, while you have a Samsung device that costs 400 JOD. You might feel like your friends are better off, richer, or more successful than you, which can push you to buy an iPhone even if you can't afford it.
Catching deals
Who doesn't love a good discount? Imagine shopping online and finding a watch originally priced at 200 JOD, but it's now 50% off. You might think, 'What a great deal!' and decide to buy it, feeling proud that you've saved 100 JOD.
Buying things you need during sales is a great way to save money. But you're not saving money when you buy something you don't need just because it's on sale. You might think you've saved 100 JOD by buying that watch, but in reality, you've spent 100 JOD.
Instant gratification
Have you ever felt frustrated and decided to treat yourself to some shopping to lift your spirits? No one can deny that buying something new can bring happiness and improve your mood. Shopping increases the release of chemicals in your brain that regulate feelings of happiness.
The only problem is that this sense of happiness doesn't last long. It disappears once you remember that you can't afford to pay your personal loan instalment this month because you spent 300 JOD on cosmetics, and suddenly, your feelings of happiness turn into regret and guilt.
Instant gratification can also lead us away from our long-term goals. For example, imagine you're in a store and see a product you like for 20 JOD. At the same time, you're saving for something big, like a trip to Sri Lanka next year. What will you do? Will you buy the product to feel instant gratification, or will you save that money for the rewarding trip later on?
Often, our minds tend to choose smaller, immediate rewards over larger, delayed ones. That's why it's important to resist this habit and keep your long-term goals in mind.
Our advice for this week
The money in your wallet or bank account isn't grown on magical money trees. You work hard every day and put in a lot of effort to earn it, and you should spend it carefully and thoughtfully. So, before you swipe your card at the store, ask yourself these questions:
- Will I actually use this product, and how will it benefit me?
- Why do I want to buy this item? What's motivating me?
- Do I have something similar at home that does the same job?
- Did I need this product before I saw it?
- Can I find the same thing for a lower price somewhere else?
Often, your subconscious mind is in charge of your purchases. Instead of blaming it and repeating the same behaviours, try to think more carefully about what you buy. By analysing your spending, you can ensure you only buy what you need and avoid financial worries.
