If you’re feeling blue, hide your green. According to new research published in the journal Psychological Science, sadness can lead to impulsive (and irresponsible) financial choices.
Study participants watched either a sad or neutral video. Then researchers asked them to choose how they’d like to receive a cash reward. They could either receive one sum of money at the end of the session, or receive a bigger reward mailed to them in the future. Participants who watched the neutral video chose the delayed reward 13 to 34 percent more often than people who watched the sad video, according to Jennifer Lerner, PhD, director of the Harvard Laboratory for Decision Science and one of the study’s authors. These differences emerged even though real money was at stake.
“Sadness makes people devalue future gains relative to present gains,” Lerner says. In other words, when you’re sad, you’re more focused on the now, rather than the future. You just want to be happy. You don’t care about what happens down the line.
“This process occurs unconsciously,” Lerner adds. “Decision makers themselves do not recognize that sadness has such effects.” Meaning: If you shop while sad, you could set yourself up for some potential wallet pain and not even know it.
Before you sprint to the mall this Black Friday—or Black Thursday in some places!—ask yourself these four questions to make sure you’re not being financially shortsighted.
Is it on my list?
Keep an ongoing shopping list of clothing, household items, and gifts you actually need. “The urge to impulse shop is very normal,” says Lauren Lyons Cole, certified financial planner, but if you give in too often, it can become dangerously expensive. Get in the habit of consulting your shopping list, and you’ll have fewer purchase regrets, Cole says.
Can I find a good dupe for it?
If there’s an expensive beauty or fashion product that you are really drawn to, try doing a Google search for the name of the product and the word “dupe”, which is fashion speak for look-alike, Cole says. Just to be clear, this is not a knockoff. It’s a similar-looking item that can save you some serious money. If you’re tackling this weekend’s sales, plan ahead by researching your top picks’ sale prices ahead of time while keeping an eye out for dupes.
Do I want this more than a ______ (insert big goal here, like “trip to Italy”)?
Little purchases might bring temporary satisfaction, but they can be a huge waste of your dollar bills. “Try carrying a picture of whatever your big goal is in your wallet, and when you’re tempted to impulse shop, use the picture to snap you back into reality,” Cole suggests. When you’re finally enjoying your goal purchase, you’ll be happy you skipped those impulse buys.
Is it returnable?
If you absolutely can’t talk yourself out of an impulse purchase, at least make sure it’s returnable. If you haven’t worn or used the item and the return date is near, you can be sure the purchase wasn’t meant to be. Warning: Don’t make this a habit or it’ll become seriously stressful keeping track of multiple items. Think of this as a once-in-awhile thing.
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