Have you ever gone to a mall intending to buy only a few things and returned home with several items you never planned to purchase? Later, you may look at what you bought and wonder why you spent the extra money. That is one of the effects of impulse buying.
In this article, I will explain the difference between needs and wants, some of the reasons we buy things we do not really need, and practical ways to reduce unnecessary spending.
The Difference Between Needs & Wants
Needs are things that are important for basic living and well-being, such as food, suitable clothing, healthcare and shelter.
Wants, on the other hand, are things that may make life more enjoyable or comfortable but are not always essential. Examples can include designer clothing, the latest electronic devices or other discretionary purchases.
Understanding the difference does not mean you should never spend money on things you enjoy. It simply helps you make more deliberate financial decisions.
4 Reasons Why We Buy Things We Don't Need
1. We buy based On Emotions: This is the major reason why we buy things that we don't need. We often feel that if we get those things, it makes our life easier and more comfortable. The major reason why this happens is that we don't know the difference between Needs and wants. If we really know the difference between Needs & Wants, it will help us a lot to minimize impulse buying to a minimum. I can remember a time in my life when I was suffering greatly from impulse buying. Back then, I always interchanged my Needs for my Wants. I always thought of my Wants and my Needs.
For example, I could remember wanting to get a new Android phone when I still had a functioning one, just because I felt the new one would have a better camera. Can you imagine? I was always having sleepless nights as a result of this. I felt I must get the new Android back then at all costs. It was like my life depended on it.
I didn't know that I only needed the new phone because the new phone would make me more comfortable. I failed to realize that it was just a want. Nobody told me I don't need the phone for my survival, and so it shouldn't be what I am spending on.
2. Social Comparison: This is another reason why people buy things. They buy things because they felt if they get that thing, they will be better than their neighbors. I have seen situations where people buy things just to show that they have arrived. This is because they are comparing themselves to others. I remember back then when a friend of mine used all hishard-earnedd money to get an iPhone, and the major reason he did that was to compare himself with other iPhone users. He got a new iPhone despite the fact that he didn't need it. He just wanted to show he had arrived.
3. Fear of Missing Out: This is another reason why most people buy things they don't need. They often have a fear of missing out, especially when there is a flash sale somewhere. They feel that if they don't buy at that particular time, then they will miss out on important things. One thing they fail to note is that those who are selling in flash sales are using that strategy to sell their stuff out. Sometimes, brand owners use terms like "Only 3 left in stock" and "Sale ends tonight". Most times, the reason why they do this is just to trigger the act of urgency in the buyers.
Subconsciously, what will be running through the minds of the buyers is that "If I miss this opportunity, I might not be able to get this product at this price". Some buyers even go as far as borrowing to get those things. The strategy works every time for the Brand owners.
4. The Illusion of Saving Money: Another cause of impulse buying is the belief that buying something during a sale automatically means you are saving money. A discount only saves you money if you genuinely needed or planned to buy the item in the first place.
I once bought an Android phone during a flash sale even though I did not actually need another phone. The discount made the purchase feel like an opportunity, but I eventually realized that spending money unnecessarily is still spending money, even when the item is on sale.
5. Failure to differentiate between Needs & Wants: Nowadays, it is very easy to think our Needs are the same thing as Wants. But the truth is that they are two different things. We have a lot of things on our list that we want to buy, and we often feel we need these things. Meanwhile, we only want them maybe because of one reason or the other.
We could need them for comfort, maybe for prestige, or maybe to satisfy our immediate wants. Sometimes, these wants come in as small purchases, and they often feel harmless. When we are buying them, we won't even know that they are harmful until we start seeing how much we have wasted and how irrelevant those things are. It is then that we begin to question why we bought them in the first place.
Ways To Avoid Buying Things We Don't Need
1. Don't rush to buy non-essential things: Sometimes, the things we don't need always come to us as if they are very important, and we often feel that if we don't get them at that time, we might miss out. The truth is that we won't miss out on anything, and the best thing is to wait for 24 hours before buying anything. When we wait for 24 hours, sometimes it can kill the drive and desire to buy them. So, no matter the urge, always wait for 24 hours or even more before buying things that are not essential.
2. Create a monthly budget and stick to it: See, let me tell you. No matter the amount you earn per month, it will never be enough for you. New things you don't plan for will keep coming up. If you are not careful, you will find yourself in debt. Always ensure you stick to your monthly budget.
3. Whenever you go to a market, make a shopping list and stick with it: Never buy anything you didn't plan for, except if things are cheaper,r but always ensure you don't spend more than you budget for the market. This is one way you manage your finances
4. Avoid shopping when you are stressed, emotionally down,n or bored: When your mental health is not intact, always ensure you avoid shopping because you could mess up your finances so badly as a result of that.
5. Always ask yourself, what is my purpose in buying this? Is it really useful and needed at this time? All these questions help you a lot.
Conclusion
When you buy things, there is nothing bad in that. Initially, money is meant to help make life easier and faster. However, when we don't buy things with intentionality, we will surely mess up our finances. Next time, before buying anything, ensure you assess yourself and ask yourself if you really need the thing or if you just want it. When ycan to answer that question, it will save you from a lot of stress and mess. Thank you for reading!
Comments