Connect with us

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website. .

Top Stories

44% of Brits will take advantage of Black Friday this year: Experts reveal how to online shop wisely this lockdown

gbaf 9 - Global Banking | Finance

-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

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

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

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.”

Global Banking & Finance Review

 

Why waste money on news and opinions when you can access them for free?

Take advantage of our newsletter subscription and stay informed on the go!


By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review │ Banking │ Finance │ Technology. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Post