We’ve all done it at least once or twice: purchased something on the fly because it was on sale or it looked good in store. Impulse buying is not the end of the world but making a habit of it is a problem.

I have to admit that I am guilty, I used to be an impulse shopper. I’ve even waited overnight for a gaming console and the iPhone 6. However, it wasn’t till a few years ago that I fully understood my problem: I was online shopping and I ended up buying 4 pairs of boots from Aldo on a shopping spree. When they all arrived I realized I didn’t like any of them!

I realized that buying without thinking can quickly lead to overspending and the feelings of guilt. It’s difficult to know if you have a problem when you’re in the middle of an impulse-buying habit. So I’ve done my best to identify what impulse buying looks like and help you shop smarter.

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#1. Shopping just makes you happy

Often, the impulse to buy a product comes from the thrill of  buying something new and how that item can make you feel. That dress will make you feel beautiful or that new couch elevates your home. But that feeling doesn’t last, eventually you’ll get your monthly bill and you start to feel bad again.

If you love to shop, plan for your sprees so impulsive feelings don’t cause you to overspend. You can use Piggy to set a goal for an expensive item like a new TV or a shopping spree.  Learn more about setting goals with Piggy the Bank.

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#2. You shop when you’re emotional

If you’ve had a bad day at work or heard some depressing news, you may use shopping as a way to feel better. You might feel a false sense of accomplishment thinking “I deserve this” and before you know it your credit card is maxed out.

Don’t shop when you’re emotional. Stay far away from the store and the web. You’ll be more likely to overspend to make yourself feel better, and use it as an excuse to justify your purchase.

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#3. You Feel the Urge

Whenever you’re at the store or shopping online, you see something you like and immediately feel the need to have it, it becomes an itch. Even if you don’t act on it, that impulse feeling can make you more likely to indulge.

If you know you’ll be window shopping don’t bring your credit card with you. Credit cards make it easy to spend money you don’t have.

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#4. You Make Excuses to shop

It’s “Saturday” you say, “I need to get groceries, but on the way we should stop by the mall,  just to look…” If you’re making excuses to go to the mall or find yourself browsing all night, you may be making excuses to shop.

Find other outlets for when you’re feeling like shopping, like hanging out with friends or watching your favourite movie. I know it’s difficult to imagine, but there’s more to life than shopping.

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#5. You Feel Regret

It’s the feeling of regret you can get after making a large purchase you’re not quite sure you wanted or could afford. For me it was the feeling I had in the pit of my stomach when I bought those pairs of boots I couldn’t afford, and it felt like crap.

My advice: slow it down. Follow the 30 day rule, if you really want something but can’t afford it, wait at least 30 days before you buy it to make sure you really want it. Keep saving and if you still want it, at least you’ve saved up so you won’t have any regrets.

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#6. You Overspend

If you look at your budget every month and freak out at the size of your credit card bill, this is a good sign you’re an impulse shopper. If you have no idea how you spent that much and your bill includes lots of largely unnecessary purchases, you may be shopping too much.

My best advice: make a plan. If you have the money, put some of your income toward fun spending. You can setup an automated goal for a shopping spree or a specific item you want with Piggy that way, you can give in to some impulses without overspending.

I hope this has helped you identify if this is you. I know that I was in personal debt for the past decade and now I’m finally debt free. It’s taken a lot of work and planning but it’s worth it. When I shop now I use the shopping platform Piggy the Bank to plan for events like the Holidays or new items like my new Apple watch and I’ll be honest, it feels good to shop – but it feels better shopping when you know you have the money.

Give Piggy the Bank a try, it’s FREE and fun to use.

Sign up at: www.piggythebank.com

If you missed us on the Radio the past week, we we’re featured on Tech Talk with the one and only Marc Saltzman. It was a pleasure to chat with Marc about about a different way to save and shop for big ticket items and what Piggy the Bank really all about. You can listen our portion of the Tech Talk interview below:

Do you remember your first purchase? Like a real purchase with your own money?

I still remember mine, it was a Nintendo Game Boy. I saved up my allowance, dug for coins in the sofa, and did random chores around the neighbourhood.

Then came the big day and going to the Mall. I recall the feeling of the plastic packaging in my hands and the anticipation of finally buying my shiny new piece of gaming tech. I had finally saved up enough and I felt like a real grown-up.

As I handed over my savings I was filled with a sense of pride. For me, the Game Boy was more than a purchase; it was a revelation of what I could accomplish on my own with a bit of time and planning. This lesson helped me avoid personal debt and now I want to help others do the same.

That’s why we created Piggy the bank.

“We owe it to our future selves to find a better way to plan and save, and to stay out of the quicksand that is personal debt.”

Over the years I’ve talked to my family and friends and many are stuck in the same cycle of credit card debt. The truth is nearly 50% of all Canadians have credit card debt, and 24% are in so deep, they’ll likely never get out. As of 2015, statistics Canada reported that Canadians had racked up $576.6 billion in consumer debt, which averages out to about $16,000 of debt per person.

Monthly budgets are great, but we still need to live our lives. We are getting married, having babies, planning events, moving and travelling. Living costs a lot of money and we owe it to our future selves to find a better way to plan and save, and to stay out of the quicksand that is personal debt.

Piggy the Bank hopes to be another tool to help control debt.

Why should people feel guilty about spending money they don’t have, when they can feel good about spending money they’ve saved up?

If you haven’t tried it yet, sign up for FREE at www.piggythebank.com and start shopping guilt free!

Press Release: Toronto, Canada, July 18th 2016

We are happy to announce the Canadian launch of Piggy the Bank.

Piggy the Bank is a grassroots fintech startup that’s out to change the way Canadians shop and save. By breaking down large purchases into automated smaller payments, we help our users buy big ticket items like electronics and furniture without interest payments, hidden fees, or personal debt. Why should people feel guilty about spending money they don’t have, when they can feel good about spending money they’ve saved up?

Co-founders Ryan Silver and Andy Garcia want to make it easy for  Canadians to save for important purchases and connect with businesses that are prepared to offer them the best possible deals.

Inspiration

Piggy the Bank Co-founder, Andy Garcia

Nearly 50% of all Canadians have credit card debt, and 24% are in so deep,  they’ll likely never get out.  “Most of us can stretch our paycheques to cover our monthly expenses, but we still need to live our lives,” says Garcia. “ When it comes to things we want, versus things we need, we tend to pull out our credit cards. The benefits are instant gratification and monthly payments, but the downfalls are sky-high interest rates and fees. We owe it to our future selves to find a better way to plan and save, and to stay out of the quicksand that is personal debt.”   

Co-founder, Ryan Silver

“Banks are great for RRSPs and TFSAs, but they aren’t geared toward multiple smaller accounts”  says Silver. “Other finance apps boast saving and goal planning, but that is where they stop and we start. The goal planning gets you in the door at Piggy the Bank, but we also aim to bridge the gap between your savings and your future purchases. As you save toward your goal, we match you up with retailers who are selling the items you are saving for so they can bid for your business. This creates the ultimate buyer’s market. It’s shopping, reimagined.”

Here’s how it works:

Piggy the Bank User Interface

Piggy the Bank is an app that creates an innovative real-time marketplace for buyers and sellers. The buyer plans their purchases by setting savings goals for specific items. They create a payment plan and connect a PayPal account. The buyer can gain rewards and cashback, and can directly purchase over 80,000 products including top brand electronics, furniture, and appliances through the app.

Piggy the Bank also represents an unprecedented opportunity for large-scale and local retailers. Our extensive database offers insights into shopping habits and future spending plans of key demographics. Piggy the Bank then uses this information to match the buyer with Canadian retailers. Retailers can target consumers directly by crafting offers based around their specific needs. It’s a win-win.  

Currently, Piggy the Bank is aiming to saturate the consumer electronics market in 2016, but plans to move into home, furniture, and vacation markets in the near future. Our goal is to help Canadians plan and save for all of life’s milestones and to help businesses reach and engage consumers within a whole new digital marketplace.

Shop Guilt Free with Piggy the Bank

Learn more at www.piggythebank.com
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Media Contact:

Andy Garcia, Co-founder
416 902 0061
hello@piggythebank.com

Multimedia links:

Images & Video: http://blog.piggythebank.com/index.php/presskit

I’m currently saving away for a new Apple Watch when it comes out next fall. I’ll be honest i’m really excited about it, to have a product that’s actually working in the background helping me save for something as I browse around is actually really cool!

However, one thing that keeps popping in the back of my mind is WHY am I saving for what i’m saving for right now? Do I really need it? Want it? This really has got me thinking.

As Canadians, we live in a culture that LOVES excess, more food, more toys, more goods and this consequently leaves us with more debt.

In the past months, I have noticed a trend in minimal living and when I looked at myself I started to wonder about all my purchases. I recently read this great book called “The Life-Changing Magic of Tidying Up” and it guides you through decluttering your home, simplifying, organizing, and storing pretty much everything in your life. After going through the book, I slowly started to realize that there are so many “things” in my life I don’t actually use, wear or really love and have the piles to prove it!

Now thinking about this, i’m not 100% sure how I ended up feeling like a mini-hoarder? Or more importantly, why do I have this need to fill my life with excess? Maybe i’ve fallen prey to advertising or the need for instant gratification… but what I have learned is that “more things” usually doesn’t make me feel happy.

So with that note, I challenge you – people of the internet – the next time you want  or  need something shiny and new, think about it first, plan for it, make a small personal goal and for the sake of your wallet save for it before you buy it. Take a bit of time and slow down a little, maybe as you plan and save you’ll start to appreciate and love it that much more when you click that purchase button.

If you want some help with saving for that big-ticket item give Piggy the Bank a try and let me know what you think!

Cheers,
Andy

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Shop Guilt Free with Piggy the Bank.
Sign up now at www.piggythebank.com