To or Not to Buy?
📺 Have you ever been triggered to buy something that you later regretted? Instant gratification involves a powerful hit of dopamine that can be hard to resist.
But how do we decide whether a purchase is worth it or not? In this video, we'll explore some strategies for making smart purchasing decisions, avoiding buyer's remorse, how to navigate the complex world of consumerism and make choices that align with your values and priorities.
Recognise your needs vs wants
Let’s just start with the basics! Distinguishing between needs and wants is important in making financial decisions because it helps prioritize spending and avoid overspending on things that are not essential.
Needs are essential for survival and include things like food, water, home, and clothing.
Wants, on the other hand, are things that we desire or wish for, but are not necessary for survival. They can be material goods, experiences, or even intangible things like status or recognition.
It’s about making sure we meet our needs but also balance and find room for our wants without financial stress or overspending.
The first step to a more mindful spending is knowing where your money is going. This sounds obvious but setting a budget and tracking your expenses to see where you might be overspending or where you can cut back.
There are many budgeting apps or tools that can help automate this process for you if needed.
Think about your goals and prioritize your spending
Your values are the things that you deem important in your life, like family, friendship, education, or whatever activities you feel are close to your heart.
Once you have identified your values, write them down so that you can refer to them later.
Then, make a list of your financial goals. Another effective way to practice delayed gratification is to set clear, measurable goals for yourself. This could include long-term goals, such as achieving a certain level of fitness, or short-term goals, such as finishing a work task before taking a break.
Setting goals gives you a tangible end goal to work towards, which can make it easier to resist short-term temptations. Additionally, tracking your progress towards your goals can help you stay motivated and stay on track. Spending is great when it brings you joy.
Don’t try to keep up with others
It can quickly become quite challenging when we start to compare ourselves to others or try to keep up with the latest trends.
Social media and advertising bombard us with messages that we need the latest fashion item, or home decor to keep up with our peers.
This can lead to a never-ending cycle of consumerism, where we are always chasing the new thing without ever feeling satisfied.
In reality, material possessions and external markers of success do not necessarily lead to happiness or fulfillment.
It's important to focus on our own priorities and values and to spend money on things that truly bring us joy and improve our well-being, rather than trying to impress others or fit in with societal expectations.
Identify the triggers
Try to identify the factors that trigger impulsive behavior. Triggers are the stimuli that cause us to feel the impulse to spend, such as seeing a sale or an advertisement for a product we desire.
Dopamine, a neurotransmitter in the brain, plays a crucial role in this process. When we see or think about something that we want, dopamine is released, creating a pleasurable sensation and motivating us to seek out that item. The anticipation of acquiring something we desire provides a hit of dopamine that can be addictive and difficult to resist.
Once you identify these triggers, you can take steps to avoid or minimize them to reduce your temptation.
For example, if you know that checking social media too often triggers you to want to buy something, you might try placing your phone in another room overnight or setting a designated time for checking messages. If you tend to overspend in physical stores, try creating a budget or sticking to a shopping list to avoid impulse purchases.
Recognise retail therapy
For some people, shopping can be a form of stress relief, but it's important to recognize when this might be becoming a problem.
Avoid using shopping as a way to cope with emotions (usually these are things like sadness, stress, or boredom).
Instead, try finding other ways to manage them, such as meditation, exercise, or spending time with loved ones. Therapy is also an amazing way to understand the underlying factors beneath these spending triggers. When you do need to make a purchase, be mindful of whether it aligns with your financial priorities and goals.
Consider the true cost of purchases
When making a purchase, it's important to consider not just the financial cost, but also the environmental and social impact. For example, buying clothes from fast fashion brands may be cheaper, but it often comes at a cost to the environment and the people making the clothes.
By choosing to shop less and invest in higher quality and sustainable products, we can reduce our impact on the environment and support ethical production practices. It's also important to recognize the role of advertising and marketing in promoting consumerism and the constant need for new products. It's also worth considering the opportunity cost of a purchase. If you spend money on a new pair of shoes, for example, that means you won't be able to allocate that money towards paying off debt or saving for a down payment on a home.
Practice gratitude
Being grateful for what we have can help us avoid overspending on unnecessary purchases.
Take the time to appreciate the things you already own, and be mindful of how they bring value to your life. When you do need to make a purchase, focus on how it will add value to your life, rather than just satisfying a short-term desire.
By practicing gratitude, we can shift our focus away from material possessions and towards experiences and relationships that bring us true happiness.
Avoid buyer's remorse
When you feel like buying something, can you take a moment to pause and reflect before making a purchase.
Is this new jacket, or membership really necessary or if it's just a fleeting desire for instant gratification?
You can also consider the long-term value of the purchase and whether it aligns with your financial goals.
Researching the item, reading reviews, and comparing prices can also help you make a more informed decision. By taking these steps and being mindful of your spending habits, you can reduce the chances of experiencing buyer's remorse and feel more confident in your purchases.
together, the final number is not important but it’s finding and sharing your numbers with each other.
Have a support system
Having a support system, whether it be friends, family, or a therapist, can also help you practice delayed gratification. A strong support system can offer encouragement and motivation when you are feeling challenged, and can help you stay on track towards your goals.
Accountability partners can be particularly helpful in resisting temptation. This could be a friend who checks in with you regularly to see how you are progressing towards your goals, or a coworker who helps you stay on task when you feel the urge to procrastinate.
LOOK OVER YOUR CHECKLIST
Finally, we created this quick checklist for you to checkin and see if you buy something or not:
Can I afford it?
Have I saved for it?
Is it a need or a want?
What am I willing to give up on to pay for this?
Will I use this item regularly?
If I don’t like the item anymore, what’s the resale value down the line?
Is it sustainable / in line with my values?
Can I borrow or buy a used version instead?
If you answer no to at least 2 of these, don’t buy it!
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