Up to 16 percent of Americans suffer from shopping addiction, or a compulsive habit of buying with significant adverse consequences, according to a study published in The American Journal of Psychiatry. And while shopping may not be such a serious problem for most people, some of us still make mistakes that cause us to waste money.
Whether you’re buying groceries, household items or shoes, chances are you’re overspending thanks to a combination of psychological and sales tactics. Here are five of the most common shopping mistakes and how to stop making them.
Spending More to Get Rewards
Known as “spaving,” spending more to save more is a shopping mistake that many retailers encourage with “crafty promotion design,” says Kendal Perez, a blogger at Hassle Free Savings. For instance, shops like Express and Victoria’s Secret often offer $15 off $50, $20 off $100 or $30 off $150, “making it seem like the more you spend, the more you save,” she says. “However, the more you spend, the more you spend, period!”
How to avoid it: Establish a budget in advance and stick to it. “If what you planned to spend qualifies you for savings, enjoy those savings and leave it at that,” Perez says.
Buying on Impulse
“Grocery stores aren’t the only ones tempting us with impulse buys at checkout anymore,” Perez says. “Retail stores like Old Navy and T.J.Maxx have checkout areas littered with small items like coffee mugs, colorful socks, cheap accessories and wrapping paper.”
How to avoid it: Take the time to review the items in your cart before you pay. Make sure everything you selected is actually something you need. “You might find items you thought you needed in the moment no longer have the same urgency. By reviewing your cart, you can save money by deciding against unnecessary buys and distracting yourself from the impulse purchases,” Perez says.
Waiting Until the Last Minute
When you wait until the last minute to make a purchase, you’re more likely to overspend.
Yes, life is busy and it can be difficult to schedule time to buy groceries before the day of your dinner party, but feeling rushed every time you make a purchase is a recipe for spending too much money.
How to avoid it: Rather than purchasing needed items at the last minute, take time to plan ahead for the week’s — or month’s — spending. Make sure to compare prices and discounts available across similar retailers. It could save you 15 percent or more.
Buying in Bulk Just Because
Purchasing items in bulk at Costco or overstocking on other items on sale at the grocery store can seem like a great way to save money. But purchasing large quantities doesn’t always work out well, especially if you’re not buying for a large household.
How to avoid it: Before purchasing an item in bulk, keep track of how much of it your household actually consumes and how long it takes you to consume it. Also, make sure you have a specific place to store the extras before you purchase them. If you have no place to store items and no assurance that they will be used or consumed within a reasonable amount of time, skip purchasing extras.
Not Having a Plan
Going shopping without a list or a plan results in overspending. If you don’t know ahead of time what you’re going to purchase, you’re more likely to be tempted by unnecessary items that ultimately may not meet your needs. When you know what you’re looking for, you can compare prices of different brands or at different retailers to ensure you’re getting a good deal.
How to avoid it: Make use of price-comparison mobile apps and good old-fashioned shopping lists. And never leave the house without a list.