Have you made a spontaneous purchase because of an ad or post on your social media timeline? You are not alone. According to a Bankrate survey, nearly half of all social media users have made an impulse purchase triggered by social media. Of those, 68% regretted it. There are significant studies on how social media affects our mental health, but the evidence of how it affects our finances is also abundant. Follow these tips to avoid falling prey to social media-induced purchases.
1. Wait 24 hours before you buy
If something on your timeline catches your eye, save the link and wait a day or two before purchasing. Ads can trigger the human instinct of instant gratification. Overcoming that urge gives you time to decide if you really need or want the item and reduces the chances of having buyer’s remorse. After waiting, if you choose to move forward with the purchase, first do some research.
2. Independently research before buying
Don’t click “add to cart” and checkout before doing some research. You may find the item at a lower price on another website or discover negative reviews you would not have seen if you had made an immediate purchase.
Don’t fully trust all information provided via social media. Be wary of products citing guaranteed results or quick impacts — before and after photos are easily altered. Look for reviews outside the post and comments. Some companies pay commenters to post a positive review on their page. Look outside the company’s pages and websites to find straightforward information.
3. Avoid Indirect Peer Pressure
People are public about their spending but private about their spending problems. You might think that an old high school acquaintance who posts fancy new cars and lavish vacations is living their best life when, in reality, they are in a mountain of debt. Or, maybe they paid cash for it. Who knows? And that’s the key. We don’t know the entire story because that’s not the concept of social media. Remembering that people typically don’t post the bad with the good can keep you from making financial decisions out of envy.
Social media is a huge component of many people’s lives. We must fully understand the good and bad that come along with it. Overcoming the human instinct of instant gratification and avoiding purchases based on emotion is a great way to up your personal finance game.
