Is Shopping Sabotaging Your Happiness?

Hi Reader,

Welcome to The Money Series and if you are new here, thank you for signing up. Personal Finance can feel ambiguous and overwhelming, but I am here to help simplify the journey.

Can you believe that I have been writing to you for 20 consecutive weeks? To celebrate this milestone, let’s go back to this reader’s favorite.

Have you ever found yourself heading home with a bag full of new items after promising yourself you were only going to window-shop? Have you found items that you bought for your future self, such as purchasing an item with the ‘hope’ of starting to eat healthy or work out more? Do you use retail therapy to escape your current feelings? Do you suddenly need to get an item a few moments after scrolling through social media? You may be spending mindlessly.

Mindless spending is like autopilot shopping. You grab things without really thinking if you need them or not. It can be tempting, especially with online shopping or impulse buys at checkout lines. These seemingly small purchases add up and can hurt your wallet. The trick is to be more mindful of your money by asking yourself if you truly need something before you buy it.

A brief note: today’s letter is not about penny-pinching or miserly, It's about being conscious of how you spend your money. It's about spending money with your eyes wide open and not letting your money or emotions control your spending. Spending your money on what you truly want.

Here are some helpful tips – I have tried most of these:

• Avoid shopping when you are emotional or bored. Don’t use shopping as a feel-better or retail therapy because the satisfaction from retail therapy fades quickly and the quest for more satisfaction can lead to a vicious cycle. Try other activities that improve your mood without spending mindlessly - walking, watching a movie, or journaling. If the mall is your happy place, go without a means of payment – no cash or card or phone with mobile wallets.

• Shop with a list a specific and detailed list. creating a list with specific details on the items you want to buy will keep you focused and reduce distractions.

• Avoid creating accounts on shopping sites and avoid storing your credit/debit card details on these sites. Check out as a guest to avoid easy purchases. Re-typing your credit card details each time makes shopping difficult and can deter impulse buys.

• Avoid duplicate purchases. Take stock of what you own regularly - outfits, hair and skincare products, even stationeries - to avoid buying things that serve the same purpose. Regularly, organize and declutter your things.

• Buy items from stores with a return policy, keep the tags on, and keep your receipts. This can help you get a refund if you regret the decision after leaving the store or checking out. Returns represent your safety nets!

• Set a Spending Threshold and Wait Period. For instance, you can set a $100 limit implying that you cannot shop for an item of $100 or above on the spot without spending at least 24 hours thinking about it and deciding if you still need the item. Taking time to think also allows you to research and compare prices and other quality options across different outlets. So, even for purchases below your threshold, you should always ask yourself ‘Is this the best price?’. This will help you avoid ‘Buyer’s remorse’.

• Be wary of buying things on sale. A key question to ask yourself whenever you want to purchase items on sale is ‘Would I have bought this item today at full price if it was not on sale?’ Sometimes, we buy items we do not need because they are 30% or even 50% off the full price. The frequency with which stores do sales and special discounts could also serve as a reminder that they are not a one-off event. If the item has been on your wish list before the sale and you can afford it comfortably, get it. A sale or a discount is only a good deal if you are using it to get something you were already planning to buy.

• Avoid the temptation. Delete shopping apps. Unsubscribe from retail stores’ mailing lists. Avoid shopping with impulsive friends. Take a different route for your regular walk. Unfollow that social media influencer that triggers spending urges.

• Make a list of the worst impulse purchases that you regret. Try to recall the item and its price the next time you have to make a similar purchase decision.

• Have a list of questions to ask yourself before shopping. Do I need this? Will this improve my life or income? Am I buying this because it’s on sale or someone recently bought it? If it’s on sale, is this something I will buy at full price? Is this in my budget? Can this purchase wait? How many hours do I need to work for this (purchase price divided by your hourly pay rate)? How many years do I get to keep this for?

• Try a No-Buy Challenge. State the duration. Be clear about what you will spend money on and what you won’t. An example is to state that you will not buy anything for which you have a substitute at home. You can also have a No-Buy for an area you have overspent on (for example, if you have spent too much funds on clothes or skincare recently, you will skip buying anything skincare for the no-buy period). You can have a no-buy window in your regular life, such as not buying anything within 5 days after payday. This is especially important if you tend to go overboard a few days after payday.

We live in a consumerist society with ads in our faces daily, further worsened by the amount of time and attention we invest in social media. We are made to believe that the next bout of happiness stems from purchasing that juicy meal or that trendy shoe.

Remember, you cannot shop your way out of unhappiness, nor can you shop your way to sustained happiness. Getting over mindless shopping is one part ‘awareness’ and the other part ‘habits’. Also, know that becoming better with your spending habits is a journey, and being mindful of it can help

Please reply with what resonates with you and the tip you will try going forward. That can help keep you accountable and I could check in with you to see how it’s going, if you like.

Act Now:

• Look at your last month’s budget or actual spending. Identify categories that brought you joy or resonate with your values and goals.

Reflect on This:

• How does your spending habit change when you get an unexpected amount of money

Till next week, I am rooting for you, money-ly!

Dee

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Disclaimer: This does not constitute financial advice. Please conduct your research or consult your financial advisor for important financial advice.