Seven Steps to Avoiding Impulse Spending

Do you struggle with impulse spending?

According to an online poll by creditcards.com, 54% of people surveyed admitted to making impulse purchases of more than $100, while another 20% said they bought items on a whim that exceeded $1,000. These items ranged from flat-screen TVs to automobiles.

According to the same study, statistics indicate that impulse buying is particularly an issue for younger generations. Interestingly, 61% of impulse purchases for those between the ages of 18 and 29 were for self-purposes. Unsurprisingly, consumers in the 30-49 category were most likely to buy for a child, while those 65 plus were more likely to make a purchase for a spouse or significant other.

It seems that as we age and take on more responsibility, our impulsive buying tends to become less selfish. Impulse buying is a major challenge for Christians living in wealthy North America. Thanks to Amazon, it is easier than ever to buy what we want and do not need.

Admittedly, impulse buying has also been a struggle in my life. Thankfully, I married someone with a strong Dutch background! In our marriage, I tend to be what Dave Ramsey would call the “free-spirited” person, while Janan tends to be more of the “financial nerd” (aka the responsible one!).

Thankfully, through her and other influencers in my life, I have grown in this area. I am what you might call a “recovering free-spirited spender.” That being said, here are seven steps that have greatly helped me on this journey toward financial discipline, and maybe they will be of some help to you.

Step 1: Commit to Handling Money God’s Way

It is a life-changing moment in every believer’s journey with God when they realize that what they have is not really theirs. Everything they possess is a gift from God that they are entrusted to manage. When you view spending from a management position, it changes buying behavior.

God’s Word has A LOT to say about money. Jesus talked about money more than he did about Heaven and Hell combined. One out of every seven verses in the gospel of Luke addresses the topic of money. How we manage our finances is a big deal to God, and it should be a big deal to us.

Step 2: Decide How Much You Will Live On

I picked this concept up from Andy Stanley several years ago. By deciding what percentage of our income we will live on, it helps us know what our true budget should be. Our spending budget should not be based on our gross income or net take-home pay. Instead, it should be based on what is left after the essential financial obligations of our lives have been met.

For Janan and I, this means a couple of things. First, 10% of all we have goes back to God through tithes and charitable giving. Next, we made the decision as a couple to set aside an additional percentage for Kingdom-minded purposes and generosity to others who are in need. After that comes savings, which take up a minimum of 10%. Following this are our bills. This helps us see what we can and cannot spend.

Step 3: Be Passionate Against Debt

Impulse purchases are made worse when they are done on a credit card that we can't pay off. King Solomon was right when he said in Proverbs 22:7, “The borrower is the slave of the lender.” Having excessive debt makes us slaves. It is not long before the purchases we make on impulse can lead us to resent the very item we thought we could not live without. Having a new Camero is awesome. Making payments on it ten years from now is not.

Step 4: Develop Financial Accountability

This isn't always a popular opinion, but I don't believe married couples should have separate bank accounts. When you become one with another person, your finances become one. While talking about financial matters as a couple is not always pleasant, I believe it is essential. It has actually strengthened our marriage, not hindered it. Janan knows everything I buy. We have joint accounts, and we frequently discuss our budget together.

For single people, accountability is perhaps even more important. Finding a good accountability mentor who can ask tough questions and offer wise counsel is huge.

Step 5: Remove Buying Temptations

If Amazon is a major temptation to you, block it on your browser for a few weeks using the Freedom app. Stop going into that retail store, which has been a major financial thorn in your side. Pretty basic but also extremely difficult.

Step 6: Know What You Want Before You Shop

CBC’s Marketplace show has demonstrated that major retail stores are highly strategic in the ways they display their merchandise (Go figure!). This is why impulse packaging, such as gum, candy bars, and prepackaged meals, is often conveniently located right near a store’s exit. Retailers know people like convenience. By knowing what we are shopping for before we shop, we reduce the number of purchases we actually make.

Step 7: Catch A Vision for Radical Generosity

Becoming a dad has had a profound impact on my outlook on many matters, including money. Quoting from King Solomon again, he states, “A good man leaves an inheritance to his children’s children.” But more than just my physical family, I want to be radically generous towards my kingdom family.

Dave Ramsey often makes this statement: “Imagine what the people of God could do for the kingdom of God if they all got out of debt.”

I think about this question often when I am tempted to make a purchase out of impulse: “Is the purchase I am making helping to further God’s kingdom in my life or hindering it?”

Don’t misunderstand me. I am not saying all impulse buying is wrong. In fact, sometimes spontaneous purchases are exactly the right thing to do. But the point is to think through the process. By having a plan already in place and determining how much of your income you are going to live on, impulse purchases no longer become financially binding. They become unplanned items within a planned system.

Personally, I believe there is no price tag we can place on having the blessing of God on our finances. Handling money his way opens up the floodgates for him to bless your life in ways you otherwise would not have dreamed possible.