We’ve all been there: scrolling through an online store, seeing something that catches our eye, and before we know it, we’ve added it to our cart. Impulsive spending can derail even the best of financial plans, especially when that temporary urge for something new turns into a long-term financial burden. But managing these cravings and staying on top of your finances doesn’t have to be difficult.
As John Hero Salvador, a Registered Financial Planner, tells Financial Adviser PH, the key to managing impulsive spending lies in understanding the psychology behind it and taking proactive steps to curb it.
One of Salvador’s top strategies? Delay before you buy. When you feel that urge to make an impulse purchase, pause for a moment. Salvador suggests taking a day or two to think it over. Most of the time, the desire will fade, and you’ll realize that you don’t actually need that item.
“The best way to manage cravings is simply not to give in immediately,” he says. “If you give yourself some time, the temptation usually passes.”
Another powerful strategy Salvador recommends is setting up a guilt-free fund. This is a small, pre-set amount of your income that’s reserved just for fun, non-essential purchases. However, the key is to only use this fund after meeting your essential financial responsibilities—like bills, savings, and debt repayment. That way, you’re not compromising your long-term financial goals.
Finally, Salvador underscores the importance of having a solid financial plan. When you’re clear about your financial goals—whether it’s building an emergency fund or saving for retirement—spontaneous spending becomes easier to avoid. Align your spending with your long-term priorities, and the rest will fall into place.
The bottom line? Impulsive spending doesn’t have to control your financial life. By taking a step back, planning ahead, and staying focused on what really matters, you can avoid unnecessary pitfalls and keep your finances on track.
