Look around your house; how long does it take you to spot something you bought on an impulse? For most of us, it doesn\u2019t take more than a few seconds. Impulse buys are any type of unplanned purchase, and it\u2019s more common than you think.<\/p>\n\n\n\n\n\n\n\n
The average American impulse spends an average of $183<\/a> every month. That\u2019s about $6 a day or $2,190 a year! It adds up. Imagine if you invested that money in the stock market at an average return of 10%<\/a>, after ten years, you\u2019d have almost $35,000! Behold, the power of compound interest. Even though it\u2019s eye-opening to see how unplanned spending adds up, not all impulse buying is bad. <\/p>\n\n\n\n New research offers compelling evidence that some material purchases have a genuine impact on our happiness, especially when specific buying criteria are met. According to a study in the Sage Journals<\/a>, people were happier when they spent money on things that were in line with their personality. For example, extroverted people loved spending money on others, but more introverted folks enjoyed spending their money on books and hobbies.<\/p>\n\n\n\n Researchers found that people were happier with their purchases if they:<\/strong><\/p>\n\n\n\n Anecdotal evidence also shows that buying can make you happier if you:<\/strong><\/p>\n\n\n\n Emotional spending occurs when you buy something you don’t need and, in some cases, don’t even really want, as a result of feeling sad, anxious, bored or distracted. We even spend when we’re happy. For instance, what did you buy yourself the last time you got a raise?<\/p>\n\n\n\n Vanessa of Fashion and Style Lab<\/a> admits to making impulse purchases a few times a week or more if she feels lonely, sad or bored. Her primary source of temptation: Instagram. <\/p>\n\n\n\n \u201cIt seems like most of the shops are operating on a similar strategy: show a bunch of beautifully curated product photos and run promotions that make you feel like you must buy right now.\u201d<\/p>\n\n\n\n Even though Vanessa loves cute and inexpensive purchases, she regrets falling for targeted ads and promotions after a recent purchase. She says the decision was negative for her because she felt coerced into wanting something she probably didn’t need. <\/p>\n\n\n\n \u201cI was also feeling a bit of FOMO at the time because I know all of my Instagram friends were liking and commenting on other shops selling similar items and I felt like I was missing out.\u201d<\/p>\n\n\n\n Andrew from Millennial Homeowner<\/a> doesn\u2019t usually engage in retail therapy, but that changed during the pandemic lockdown. <\/p>\n\n\n\n \u201cBeing bored has led to several purchases of products that I\u2019ve seen others using on social media. Someone was showing their therapy massage gun, and I was bored and could see a use for it, so I bought it. Looking back, I was clearly needing something to look forward to in the form of a package arriving at my doorstep!\u201d<\/p>\n\n\n\n Does he regret the purchase? Not really. He\u2019s happy he bought it but noted that he had already forgotten buying it by the time it arrived.<\/p>\n\n\n\n If we thoughtfully examined every shopping decision, compared prices, and looked at reviews for everything we buy, we\u2019d get lost in too much information. Instead, we use heuristics\u2014unconsciously held rules of thumb\u2014that help us make quick decisions that we\u2019ve learned generally work out well. Targeted ads rely on our buying instincts and convince us to make decisions based on a desire to avoid missing out on deals.<\/p>\n\n\n\n Rose of One Single Rose<\/a> recently took on several DIY projects and found that targeted ads for things she needed playing into her desire for good deals.<\/p>\n\n\n\n After googling things for her projects, Rose says, \u201cas soon as I returned to social media sites, ads popped up with exactly what I browsed for with coupons #winning! I would have appreciated those ads popping up before I spent hours browsing online, though.\u201d<\/p>\n\n\n\n Rose has no regrets about any of the items she purchased. \u201cI found some great deals and my walls look amazing.\u201d<\/p>\n\n\n\n She adds, \u201cafter the midnight hour is when I’ve found the best deals. Early bird gets the worm, right? However, when I’m not in the mood to shop, I make sure to clear my browsing history, so I’m not tempted to impulse buy.\u201d<\/p>\n\n\n\n Shopping is fun! Whether in person or online, finding something you didn\u2019t know you needed is exciting. People also tend to shop more if they grew up in households where regular, non-essential spending was normalized. Treating yourself can be fun, even if you aren\u2019t in the habit of making impulse purchases.<\/p>\n\n\n\nMoney Can Buy Happiness (Sometimes)<\/h2>\n\n\n\n
4 Reason for Social Media Impulse Buys<\/h2>\n\n\n\n
Emotional Support<\/h2>\n\n\n\n
Targeted Ads and Loss Aversion<\/h2>\n\n\n\n
Enjoyment<\/h2>\n\n\n\n