Symptoms of impulsive spending

By John Kariuki

Does your spouse or partner complain that you are spending too much money? When your credit card bill arrives, are you surprised on finding out that you are charged more than you thought?

Does your dressing table and wardrobe contain lots of accessories and clothes respectively that you almost never wear?

Do you always go for every new technological gadget and model of mobile phone?

Do you get home from the shop with items you had no intention of buying?

Do you spend money on things that you did not realise that you needed until you saw them on display in the store?

Specific goals

If the answer to one or more of these questions is yes, you probably suffer from impulse spending. And according to personal finance experts when people are unable to save money for the things that are important to them, like a house, a car, a vacation, or retirement, impulse spending is often the culprit.

According to Humphrey Kairo, a financial advisor, when people don’t have specific financial goals, they fall into the trap of spending money on items that don’t have any meaning to them.

"Once one start saving regularly towards a financial goal, they may want to have separate funds to spend on unplanned items," says Kairo.

"But that way they can indulge in occasional impulse spending without jeopardising their financial future," he says.

Kairo has seen impulse spending or recreational shopping, putting a strain on people’s finances and their relationships.

"When people learn to recognise their needs from their wants, financial independence comes within their sight," he says.

He says that we are constantly bombarded with messages from advertisers who appeal to our psychological needs and tempt us into spending money on things we want but may not actually need.

He advises consumers to allow for a "cooling-off period" before spending money on anything they have not planned for in advance.