Rein in impulse buying

Strategies for limiting spending to what you need

Since the COVID-19 vaccine became available in the U.S., there have been more opportunities to impulse spend on items and experiences that shoppers couldn't earlier in the pandemic.

But when the nonessentials threaten to put your finances in jeopardy, it’s important to keep your financial goals on track.

Here are some strategies to help you navigate impulse spending.

1 Wait a day or two When you feel that overwhelming urge to spend, wait 24 to 48 hours to see if you still want an item, suggests Brad Klontz, a financial psychologist based in Colorado.

He explains that this pause can help calm the “emotional brain” and activate the “rational brain,” the one that holds you accountable tomorrow.

2 Practice safe credit card habits Credit cards may help or hurt, depending on how you spend. Klontz says that people spend significantly more money when using their credit cards instead of cash. He suggests keeping a cash envelope to use on things you tend to overspend on.

Also, minimize impulses by not storing credit card information on websites or apps, says Kathy Longo, a certified financial planner and president of Flourish Wealth Management, a financial planning firm in Minneapolis.

Once you do charge a purchase to a credit card, pay it off in full to avoid interest and save money. For large purchases, consider using a card with a 0% introductory APR.

3 Give yourself a splurging allowance Build a personal allowance into your budget for potential must-have purchases.

If you exceed your allowance, take that amount out of next month’s budget, or supplement it by redeeming credit card rewards for cash back or statement credit if it makes sense.

4 Get an accountability partner An accountability partner can help you dissect your reasoning for a purchase. They don’t have to offer an opinion, just an ear. The goal is to hear yourself talk about it out loud and make a decision that aligns with your goals and values, Klontz says.

He suggests choosing a spending limit that merits discussion. For instance, if a purchase exceeds $100, then it may be worth running by an accountability partner.

This article was provided to The Associated Press by the personal finance website NerdWallet. Want to suggest a personal finance topic that Quick Fix can address? Email [email protected].