Published by linker 5
Posted on November 3, 2020
-Experts reveal top 5 tips to avoiding impulse spending online this Black Friday as physical stores close
-Experiment shows a brisk walk can give same psychological high as a shopping spree
A survey of more than 2,000 people¹ by Atom bank found that 44% of Brits plan to take advantage of this year’s Black Friday sales, with experts predicting that online shopping will hit a peak this Black Friday as savvy shoppers look to take advantage of the online sales*, whilst non-essential shops remain closed throughout lockdown 2.0.
The app-based bank also conducted a heart-rate based physical experiment² to determine if shopping really can make humans happy, both mentally and biologically, revealing that post-shopping happiness is largely a psychological concept.
So, how can we make sure we’re spending money for the right reasons and avoid getting swept away in the midst of all the excitement this Black Friday?
Image credit: Unsplash/@marcusspiske
Money saving experts, Atom bank, and Behavioural Psychologist at Durham University, Mario Weick, share their top tips to spending wisely this lockdown in the midst of the biggest sale season of the year.
1. Focus on a future goal
If you struggle to avoid the temptation of sales, one of the best ways to control your urges is to focus on a future goal that saving your money could lead to, whether that’s saving up for driving lessons or taking a step onto the property ladder.
Mario comments: “The benefits of saving money materialise over time, so focusing on a future goal can make it easier to save money, whereas focusing on the here and now may encourage spending.”
2. Avoid shopping when tired or under the influence of alcohol
Mario warns: ‘Impulsive behaviour can be triggered by things such as tiredness, alcohol, or information overload.”
Browsing your favourite online sites when you’re super tired at the end of a stressful week of work, or after a couple of glasses of wine, can lead you to make purchases without fully thinking them through.
Try only shopping when you feel fully alert and rested. For added benefit, get into the habit of taking the time to mull a purchase over for at least a few hours before heading to the virtual checkout.
Image credit: Unsplash/@alicesimkin
3. Reduce your exposure
Mario comments: “It may sound simplistic, but one way to alleviate the pressure is to reduce one’s exposure and avoid the situation, if possible. Something like going for a walk could be a good idea.”
This is further backed up by Atom’s experiment, which found that shoppers got the same biological ‘high’ from taking a brisk walk, as they did from hitting the checkout button.
If you’re tempted to make a large purchase, try heading out for some exercise instead. If you’re still keen on making the purchase when you get back, then it’s unlikely that your body is just craving the endorphins that shopping can bring.
4. Drop the ‘all or nothing’ attitude
When you’re trying to limit your spending, you can feel like going cold-turkey is the only answer. However, evidence suggests that this ‘all or nothing’ attitude is actually harder to maintain than a split-budget approach.
Mario adds: “Saving some income, while giving oneself a spending allowance really does appear to be the golden formula.”
“A healthy balance between restraint and allowing oneself some pleasure and spontaneity is an optimal strategy to boost happiness.”
Ahead of Black Friday this year, set yourself a clear goal of how much you can comfortably afford to spend, and create a list of the areas you are happy to spend on. From Christmas gifts for the family, to a new electric toothbrush, allowing yourself to spend some of your income means you are less likely to get swept away on the day and end up overspending.
Image credit: Unsplash/@processrepeat
5. Spend for long-term happiness
Mario comments: “The purchasing experience is designed to give us a quick kick, with products to match that often emphasise fleeting pleasures.
“Spending money is more likely to promote happiness when the purchase is intrinsically rewarding, e.g. life experiences, personal development or on gifts that nurture meaningful relationships, rather than those driven by superficial motives.”
Take the time ahead of Black Friday to really work out what you want to gain from your purchases this month. Although treating yourself can give you a little boost of joy, make sure you’re not only shopping for the sake of it, or to experience the excitement of grabbing a ‘bargain’.
This chance to reflect on whether your purchase will bring you long-term happiness will give the brain time to digest properly and lower the risk of spending on things that only have a short-term impact.
Edward Twiddy, Chief Customer Officer at Atom bank comments: “With the huge changes we’ve seen in the financial climate this year as a result of Covid 19, it’s more crucial than ever before for people to understand their finances and how to get the most out of their earnings.
“Through our research we want to highlight the value and importance of spending money on things that will bring long term happiness. Trips away, being together, experiencing something new and shared fun are crucial for each of us, but their cost can sometimes make them appear beyond reach.
“So we wanted to show that these life affirming moments are possible, whatever you might be able to afford. With products such as our Instant Saver account you can open a savings account with £0, get the same great rate no matter how much you save, and not face any limits or penalties on withdrawals. With the benefits of saving for something special really clear, we’re aiming to make the whole process easy, accessible and rewarding for everyone.”
Explore more articles in the Top Stories category
