By Jun Amparo
Have you ever thought about impulse buying and wished you have a full control over your spending habits? Let me share with you the top reasons why many Filipinos are up for impulse buying.
- Social pressure
There are some people who cannot resist the temptation of buying products which their friends have bought. The need to be accepted by others and wanting to belong is one reason for impulse buying.
- Sense of competition
Sense of competition simply means needing to have what everyone else has. A classic case of competition is about spending money on stuff you don’t need, to impress people you don’t like. This habit will put you into debt if not controlled wisely.
- Showing Off
This behavior is observed when a person decides to buy a new item in the mall to show his friends that he has the “latest.” Men usually talk about their new cars and women tend to show off fashion stuff like clothes, jewelries, and the latest gadgets. Impulse buyers are more social, status-conscious, and image-concerned. However, showing off is simply the enemy of simplicity and frugality.
- Enticing or appealing advertisement
The mall sales and easy credit with zero interest are very tempting to consumers. It’s hard to say no to cash load and credit cards because it is easy to avail of. Furthermore, advertising industries use a strategy called “association” which means creating positive emotions connected to the product. For instance, sporting equipment companies use successful athletes like Lebron James or other TV personalities in their ads to create a strong psychological connection with customer. When a customer sees his idol endorsing certain products, he would hardly resist the temptation.
- Credit card spending and delayed gratification
It’s convenient to own all kinds of credit cards available in the market. Although the idea about credit card is “use now, pay later,” it will incur penalties once you failed to pay the balance on time. Since penalties are issued for late payments, this could be a problem when the little charges accumulate over time. It mostly happens when a person fails to keep track of the balance in his various accounts.
- Out of depression
Some people tend to do shopping as an emotional relief or when they are severely depressed and they need to forget about work pressure. Curb spending when you are depressed and find healthy ways to address the issue.
Finding the right balance in spending
The central issue about spending habits is to find the right balance between satisfying your needs and wants when making purchases while at the same time saving and investing wisely. Ultimately, you’re the one who is in charge of making sound financial decisions.
About the author
Jun Amparo is a Thailand-based overseas Filipino worker (OFW) and a personal finance advocate.
