Stop Impulse Buying: Financial Secrets to Master Your Budget Year-Round

The Conversation: From Shopping Sprees to Smart Spending

Aru: Welcome back to Entrepinoy Espesyal! I’m Arwell Mendoza.

Today, we are joined live by Mr. David Angway, a Registered Financial Planner and founder of the No. 1 career podcast in the Philippines.

As we enter the "Bermonths" and look toward 2026, many of us feel the urge to spend. David, how can we be wiser with our money during this season?

David: Thank you, Aru! It’s great to be back. With only 99 days until Christmas, we are entering the "martyr of the year" for finances. People often find themselves either in debt or with zero savings. My goal is to help you transition from being a heavy spender to a wise spender.

The Digital Mall in Your Pocket

Aru: We often become impulsive buyers, especially with new gadgets and sales. What is the secret to keeping our budget intact?

David: You have to realize that the mall has already penetrated your home. Your gadget is now part of the mall. Organizations and marketers have solid plans to take your money through "gamification" in e-commerce apps. They want you to spend your time, energy, and money there.

• Awareness is Key: Big companies have a strategy to capture your earnings. If you don't have a plan for your money, they do.

• The 30,000 Decision Trap: We make about 30,000 micro-decisions every day. By the time you finish work, your "willpower" is exhausted, making you highly susceptible to clicking "Buy Now" in e-commerce apps.

Frequently Asked Questions (FAQ)

Aru: What is "Impulse Buying" and why is it dangerous?

David: Impulse buying is spending without a plan, often driven by your environment. For example, if you go to a mall hungry and smell baked goods, you might buy them simply because you just withdrew cash.

• Out of Sight, Out of Mind: If sales constantly victimize you, it's because you are continually looking at the app.

• The 5-Minute Rule: I have a favorite bookstore where I know if I stay longer than five minutes, I’ll buy something. I now bring a friend to pull me away before that threshold.

Aru: What is "Buyer's Remorse"?

David: It is the feeling of regret after a purchase. You buy a gadget or clothes only to realize a few months later that it wasn't worth it or doesn't fit.

• The Trap of "Sumipag": One of the worst pieces of advice is "buy a car so you'll be motivated to work harder." If you lack motivation, a new car just puts you in a miserable financial place and can damage your credit score if it gets repossessed.

Aru: Is it wrong to treat myself after a long work week?

David: Not at all. Treating yourself is fine, but you must set a limit. Reframing your budget isn't about deprivation; it's about prioritization. If you spend everything now on "wants," you are forced to say "no" to more important things later, like medical emergencies.

Aru: What is the 50-30-20 Rule?

David: This is a simple framework to manage your income:

• 50% for Needs: This covers groceries, bills, and debt payments.

• 30% for Wants: This is your "I deserve this" fund. Putting a limit on this prevents a zero balance in the future.

• 20% for Savings/Goals: This is the portion that secures your future.

Clean Takeaways

• Budgeting is Stewardship: As Christians, we are called to be good stewards of God’s resources. Being in control of your finances leads to a happier, more responsible life.

• Plan Your Shopping: Use "Add to Cart" as a temporary holding area, but wait before checking out to avoid impulse decisions.

• Set Intentional Boundaries: If an environment (like a specific store or app) triggers you to spend, avoid it or bring an accountability partner.

• Prioritize the Future: Every "yes" to a luxury now might be a "no" to a necessity later.

Aru: Thank you, David! We should all be intentional and responsible with our spending habits.

David: Thank you, Aru! Remember, the more you are in control of your finances, the happier you will be. You can reach me through my website, davidangway.com.