THE IMPACT OF IMPULSIVE BUYING ON YOUR FINANCIAL WELLBEING

I recently looked at my current bank s t a t e m e n t a n d realized for the second time in over a year that I had money left at the end of the month. I looked back even further and realized how far I had come in my financial behavior modification and how proud I was of myself because although the temptation was great, I had put the brakes on the need for instant senseless gratification.

Part of the problem was that, like so many others, I had fallen victim to impulse buying, a guilty pleasure that, in my own way I reconciled by convincing myself that it wasn't that big of a deal and if there were no immediate need for the item, eventually there would be. In my case, it never reached the addictive phase because I didn't have 'that' kind of money, but it only takes one or two recklessly impulsive purchases to start down a long and winding road that can lead the way to financialruin.

Some of you reading this may be nodding in agreement, and others may be shaking their heads in shock and awe wondering how people could indulge in such foolishness. Before harsh judgment is leveled it is important to understand the psychology of impulse buying, and as with all behaviors, there is cause and effect. Our states of mind, memories, fears, and even our personality can be used to predict what a person might buy on a whim and how much. An example of this would be having extreme deprivation of basic needs. Growing up, my siblings and I had to deal with having one sheet on our beds. As soon as my younger sister got a job she began buying bed-in-the-bag sets. Today she has an entire room filled with racks and racks of the sets. The memory of the past created a fear that manifested itself as she reached adulthood. The cause can run from loneliness, ego, sadness and grief, stress, or perceived ostracism. What many see as a presumed weakness, impulse buyers see as a way to feel good. The purchases afford them a modicum of peace and egostroking.

There are classifications of distracted buyers: The first class is the browser. These are shoppers who casually browse a store, not exactly sure what they are looking for They suddenly happen upon a neat-looking gadget that would make a great birthday or Father's day gift, or an odd-looking pair of golf socks, a scarf, or a handbag that matches nothing in a current wardrobe. The second class is the harried mothers who take their little ones shopping with them. There is nothing like a long wait at a checkout counter filled with all sorts of personal products, batteries, earbuds, and other small electronics accessories to tempt a purchase. The third class, and the one that can bust a budget, are the impulse buyers of As-Seen-On-TV products.

The ads are everywhere! Our senses are bombarded with high-powered, well-crafted ads that besiege us to buy, buy, buy! Celebrity spokespersons with perfect hair and teeth tell us their stories of miracle cures for everything from obesity to skin renewal to gadgets that make it easy to spray on cosmetics. They hawk the virtues of new, improved, and significantly bigger and more expensive electronics. These ads go all the way back to the '50s touting health remedies such as Ironized Yeast and Geritol. Who can forget the I Love Lucy episode where Lucy was promoting “Vitameatavegamin,” which was supposed to be a Geritol type product made with a more than moderate amount of alcohol. The difference between then and now is the sheer number of products available and the payment methods.

Let's start with cookware. From well-known chefs Emeril Lagasse to Bobby Flay to cooks Rachel Ray and Martha Stewart, there are so many choices of skillets and air fryers selling at remarkably low prices that may or may not include shipping and handling. The ads always say if you order now, you can get a second free if you pay shipping and handling, or if you buy now, one payment of x amount of dollars will be dropped. The 800 number is given, and during the ordering process, the call center customer service person who gets paid to upsell will sell you all sorts of extras you do not need. That $149.00 air fryer is now a well over $200.00 purchase on your credit card that you will pay interest on.

Now that you are convinced that you can prepare restaurant-quality meals for your family, we move on to the medicinals and supplements. Anyone looking for quick relief from almost anything and who thinks that veggies and fruits in a pill are the key to long life and energy has just checked into Hotel $$$ Disaster. There they are smiling faces in the 40 plus age range extolling the virtues of veggies and fruit in capsules. The testimonials seem compelling, and if you order right away, you get a can of spice and herbs. What the ad doesn't say is the product costs $99.00 plus tax and shipping and that it is a subscription. You order it and realize that it doesn't work, and your credit card will take an ongoing hit because it takes time to cancel under their terms. You also failed to read the medical and consumer reviews.