Since Covid-19 vaccines became available, and with movement restrictions easing in parts of the world, there have been more opportunities to spend impulsively on items and experiences that you didn’t get to enjoy early in the pandemic.
With the freedom to do more, consumers are spending more.
For the first seven months of 2021, retail sales in the US were up 15.5 per cent compared with the same period in 2020, according to the National Retail Federation.
As some restrictions have eased, it’s likely that you’ve had new spending needs: returning to work, visiting with friends and family and partaking in other back-to-normal activities. But when the non-essentials threaten to put your finances in jeopardy, it’s important to keep your financial goals on track.
Here are five strategies to help you navigate impulse spending.
1. Wait a day or two
When you feel that overwhelming urge to spend, wait 24 to 48 hours to see if you still want an item, Brad Klontz, a financial psychologist based in Colorado, says.
“Ask yourself: 'Can I afford this? Where am I going to put it? How am I going to feel about this purchase tomorrow? How am I going to pay for this?',” he says.
This pause can help calm the “emotional brain” and activate the “rational brain”, the one that holds you accountable tomorrow, he adds.
2. Practise safe credit card habits
Credit cards may help or hurt, depending on how you spend. People spend significantly more money when using their credit cards instead of cash, Mr Klontz says. He suggests keeping a cash envelope to use in areas where you tend to overspend, such as dining out.
Also, minimise impulses by not storing credit card information on websites or apps, says Kathy Longo, a certified financial planner and president of Flourish Wealth Management, a financial planning firm.
“It’s much easier to be like, ‘I’ll look at it later because I’m not going to go find my purse and get my credit card',” she says. That time can indirectly make you rethink a purchase.
Once you do charge a purchase to a credit card, pay it off in full to avoid interest and save money. For large purchases, consider using a card with a 0 per cent introductory annual percentage rate.
3. Use kerbside pickup
Many retailers have offered kerbside pickup since the start of the pandemic. It’s one option that Lauren Miller, a Massachusetts resident, uses to stay on track in her debt-free journey.
Avoiding the inside of the store means “you’re not seeing those seasonal items and those flashy marketing strategies”, she says. These can often lead to impulse buying.
Some retailers may charge for kerbside pickup or require you to spend a certain amount to waive the cost. You’ll have to weigh whether it’s worth paying a few dollars to avoid the potential cost of impulse spending.
If you have to go into a store and the urge wins, do an online price comparison of the item, Ms Longo says. “See if you can find something similar at a better price or maybe on sale,” she adds.
The desire to make impulse purchases lessens, I think, because I know I have the permission to make an impulse purchase if I choose to
Lauren Miller,
YouTube content creator
4. Give yourself a splurging allowance
Build a personal allowance into your budget for potential must-have purchases. When Ms Miller first started to curb impulse spending, she gave herself $20 to use at each store. Over time, that amount lowered to $5 per store as she embraced the habit. Since she frequents only about four stores per month, the total doesn’t dent her budget.
“The desire to make impulse purchases lessens, I think, because I know I have the permission to make an impulse purchase if I choose to,” she says.
If you exceed your allowance, take that amount out of next month’s budget, or supplement it by redeeming credit card rewards for cash back or statement credit if it makes sense.
But if impulse spending is constantly causing you to stray from your budget and get into debt, it may be time to re-evaluate spending habits or speak to a credit counsellor or financial therapist.
5. Get an accountability partner
An accountability partner can help you dissect your reasoning for a purchase. They don’t have to offer an opinion, just an ear. The goal is to hear yourself talk about it out loud and make a decision that aligns with your goals and values, Mr Klontz says.
He suggests choosing a spending limit that merits discussion. For instance, if a purchase exceeds $100, then it may be worth running by an accountability partner.
Another option is to use social media followers to stay accountable.
As a content creator on YouTube, Ms Miller documents her progress on social media platforms by sharing her plans to stick to a shopping list.
Killing of Qassem Suleimani
Final round
25 under - Antoine Rozner (FRA)
23 - Francesco Laporta (ITA), Mike Lorenzo-Vera (FRA), Andy Sullivan (ENG), Matt Wallace (ENG)
21 - Grant Forrest (SCO)
20 - Ross Fisher (ENG)
19 - Steven Brown (ENG), Joakim Lagergren (SWE), Niklas Lemke (SWE), Marc Warren (SCO), Bernd Wiesberger (AUT)
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
The specs: 2018 Mercedes-AMG C63 S Cabriolet
Price, base: Dh429,090
Engine 4.0-litre twin-turbo V8
Transmission Seven-speed automatic
Power 510hp @ 5,500rpm
Torque 700Nm @ 1,750rpm
Fuel economy, combined 9.2L / 100km
UAE currency: the story behind the money in your pockets
Quick pearls of wisdom
Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”
Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”
Email sent to Uber team from chief executive Dara Khosrowshahi
From: Dara
To: Team@
Date: March 25, 2019 at 11:45pm PT
Subj: Accelerating in the Middle East
Five years ago, Uber launched in the Middle East. It was the start of an incredible journey, with millions of riders and drivers finding new ways to move and work in a dynamic region that’s become so important to Uber. Now Pakistan is one of our fastest-growing markets in the world, women are driving with Uber across Saudi Arabia, and we chose Cairo to launch our first Uber Bus product late last year.
Today we are taking the next step in this journey—well, it’s more like a leap, and a big one: in a few minutes, we’ll announce that we’ve agreed to acquire Careem. Importantly, we intend to operate Careem independently, under the leadership of co-founder and current CEO Mudassir Sheikha. I’ve gotten to know both co-founders, Mudassir and Magnus Olsson, and what they have built is truly extraordinary. They are first-class entrepreneurs who share our platform vision and, like us, have launched a wide range of products—from digital payments to food delivery—to serve consumers.
I expect many of you will ask how we arrived at this structure, meaning allowing Careem to maintain an independent brand and operate separately. After careful consideration, we decided that this framework has the advantage of letting us build new products and try new ideas across not one, but two, strong brands, with strong operators within each. Over time, by integrating parts of our networks, we can operate more efficiently, achieve even lower wait times, expand new products like high-capacity vehicles and payments, and quicken the already remarkable pace of innovation in the region.
This acquisition is subject to regulatory approval in various countries, which we don’t expect before Q1 2020. Until then, nothing changes. And since both companies will continue to largely operate separately after the acquisition, very little will change in either teams’ day-to-day operations post-close. Today’s news is a testament to the incredible business our team has worked so hard to build.
It’s a great day for the Middle East, for the region’s thriving tech sector, for Careem, and for Uber.
Uber on,
Dara
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
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Abu Dhabi Equestrian Club race card
5pm: Abu Dhabi Fillies Classic (PA) Prestige; Dh110,000; 1,400m
5.30pm: Abu Dhabi Colts Classic (PA) Prestige; Dh110,000; 1,400m
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Our family matters legal consultant
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All ties are to be played the week commencing December 21.
Safety 'top priority' for rival hyperloop company
The chief operating officer of Hyperloop Transportation Technologies, Andres de Leon, said his company's hyperloop technology is “ready” and safe.
He said the company prioritised safety throughout its development and, last year, Munich Re, one of the world's largest reinsurance companies, announced it was ready to insure their technology.
“Our levitation, propulsion, and vacuum technology have all been developed [...] over several decades and have been deployed and tested at full scale,” he said in a statement to The National.
“Only once the system has been certified and approved will it move people,” he said.
HyperloopTT has begun designing and engineering processes for its Abu Dhabi projects and hopes to break ground soon.
With no delivery date yet announced, Mr de Leon said timelines had to be considered carefully, as government approval, permits, and regulations could create necessary delays.
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Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
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Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
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Founders: Mansour Althani and Abdullah Althani
Based: Business Bay, with offices in Saudi Arabia, Egypt and India
Sector: Technology, digital marketing and e-commerce
Size: 70 employees
Revenue: On track to make Dh100 million in revenue this year since its 2015 launch
Funding: Self-funded to date
