ASK
Mattu & Mittu

MuthootBlog

Avoid Impulse Buying This Holi

  • March 3, 2017
  • rootroot

We have all, at one time or the other, been guilty of impulse buying; especially during the festive seasons. Impulse buying is all about buying something due to sudden urge, without an actual reason, and without any prior planning. When it comes to such expenses, emotions and feelings have been found to play a major role; emotions that can be triggered by different factors like a well-crafted ad campaign. In reality, these purchases can be anything from small expenditures like chocolates and clothes to larger expenditures like cars or jewellery. Up to 80% of the times, impulse buying is followed by a feeling of disapproval and guilt, and is accompanied by the very real chance of financial discord and damaging your credit score.

How Impulse Buying Can Disrupt Your Financial Goals

The most harmful aspect of impulse buying, apart from the immediate financial deficit, is that it can bring down your credit score. A credit score is used by lenders and financial institutions to judge your eligibility for a line of credit. The credit score paints a picture of your credit risk and plays a major role in deciding the rate of interest you might be offered in the future.

Experts agree that the sheer number of credit cards that are easily available to the populace is what contributes in a major part in impulse buying. The thought of “Buy Now, Pay Later” tends to do much more harm compared to the ease it provides. Add to this a general lack of financial literacy and knowledge of compounding interests applicable on credit cards, and you have a ton of people who do not realize they are damaging their credit scores till it is too late.

Tips to Avoid Impulse Buying This Holi

As mentioned before, festive seasons have a history of seeing a surge in impulse buying. Holi too has been associated with buying new wares, which adds to the spendthrift feeling, and people end up overspending. To help counteract the same, here are a few tips which can help you avoid the urge of buying random stuff:

Don’t Quit Cold Turkey

As the name itself suggests, this type of purchasing is built on an impulse. If you suddenly quit buying stuff completely, you will definitely reach a breaking point; and head out for a spree, in which case you will end up spending even more than before.

Make a Game Plan

Shopping cannot be stopped altogether. If you don’t consider impulse buying, there are still a number of items that you need to buy. Make a plan, enlist the necessary items, and stick to it when you shop.

Allot a Time Period

If you have an urge to buy something expensive that you believe you really need, give yourself a week. If after a week you still feel that what you wanted to buy was important, go buy it; because an impulse generally wears off after a while.

Work Out the Value

If you want to convince yourself that you don’t need to buy something, calculate its price in terms of the hours or days that you will have to work to be able to pay for it. Buy it if you think that amount of effort is a fair exchange.

Like many festivals, impulse buying comes to the fore around Holi as well. As a preliminary fail-safe, factor in your future financial goals into the equation before making any major expenses; a little bit of control can go a long way to help avoid impulse buying.

Share on FacebookTweet about this on TwitterShare on LinkedInPin on PinterestShare on Google+

Leave a Reply

Your email address will not be published. Required fields are marked *

WHY US

We are India's No.1 - Most Trusted Financial Services Brand, according to the Brand Trusted Report, 2017 & 2016 consecutively. We are also the largest Gold Financing Company in India in terms of loan portfolio, according to the 2015 update to the IMaCS Research & Analytics Industry Reports, Gold Loans Market in India, 2015 ("IMaCS Industry Report, (2015 Update)"). We provide personal and business loans secured by gold jewellery, or Gold Loans, primarily to individuals who possess gold jewellery but could not access formal credit within a reasonable time-frame, or to whom credit may not be available at all, to meet unanticipated or other short-term liquidity requirements.

  • 25000

    Employees

  • 4500+

    Branches spread over 21 states and 4 Union Territories

  • 6 million

    Customers in our portfolio

  • 131 year

    Existence