How to Turn Regretful Purchases Into Smart Financial Lessons

Have you ever bought something and immediately gotten cold feet after completing the purchase? We’ve all been there – the sinking feeling that follows after making an indulgent purchase leads to regret.

Oftentimes, we make impulse purchases of luxury items that we subconsciously know aren’t required or essential. Thanks to consumerism, we buy them anyway. What if we told you that rather than dwelling on these mistakes, you could turn them into valuable financial lessons?

Let’s explore 7 ways to overcome these feelings of regret and put the bad purchases to good learnings instead.

1. Understand Why You Needed it

Before anything else, it is essential to acknowledge that you made a regretful purchase and try to identify the root cause of it. Did you get caught up in the hype of a trendy item? Was it an irresistible limited-time offer? Or, was it just an emotional buy driven by stress or excitement?

Once you’ve deduced the reason for the purchase, make a conscious effort to keep a spending journal for a month to track what you buy and why. If you feel that you’re making a bad purchase once again, recognise the spending patterns that you learnt from your previous mistake and take the necessary steps to prevent it from happening again.

2. How Did it Impact Your Finances?

Depending on the scale of your purchase, it might have different levels of consequences. Some can be short-term, while others could negatively impact your finances in the long run.

If you make a financial decision that damages your funds in the long run, you may find yourself struggling to cover essential expenses like rent, utility bills, and car repairs. Falling behind on these expenses/payments impacts your credit score negatively and restricts you from accessing financial products and services like mortgages.

If you’re caught in this cycle, financial options like salad bad credit borrowing could come in handy, especially in case of an unforeseen and unavoidable expense. It gives you the funds that you need despite of not having a spotless credit score or history. Additionally, it gives you a chance to get back on your feet without having to rely on high-interest loans.

3. Return or Resell if Possible

When recovering financially after a regrettable purchase, your goal is to minimise the loss and recover your spending in some capacity. You can do so by either returning, exchanging, or reselling the item.

If the store’s or seller’s policies don’t offer refunds, consider browsing online for marketplaces like eBay or AliExpress for reselling or repurposing it in a way that provides value.

4. Create a Financial Buffer for New Purchases

The next time you find yourself making an impulsive decision that you think you’ll regret in the future, deposit the same amount into a savings account instead.

Sleep on it for a month, and see if the way you feel about the item that you wanted to purchase has changed. More often than not, you’ll realise that you didn’t need it and that money can go towards more essential financial goals now. If you still feel the need to buy the item after a month, you’ll have the funds ready because you set them aside a month ago.

5. Contact a Friend Before Buying

Good friends know you better than you do and talking to one about an impulsive purchase you’re about to make can make your decision easier. An outside perspective from someone who understands your values and priorities will give you a grounded point of view that’ll help change your mind. They might remind you of your financial goals, ask questions you haven’t considered, or even give you a harsh reality check on your current bank balance.

6. Turn Regret Into Motivation

Let’s assume that you’re unable to resell, return, or repurpose your purchase into anything valuable. The feeling of regret is probably going to be higher than anything else at that point, and that’s the perfect opportunity to learn more about improving your finances.

Instead of getting disheartened, put that energy into educating yourself on ways to pay off your existing debts, making investments in lucrative stocks or shares, improving your credit score, and building your savings nest for future needs.

To Sum Up…

Make a rulebook of financial guidelines that you will strictly abide by whenever you feel like you’re about to make an impulsive purchase decision. Reflect on your past choices, not to dwell on them, but rather to actively work on ways to improve your spending habits from now onwards.

What’s done is done, and there’s little that you can do to change that. There are ways to replenish the value of a regrettable purchase back by reselling or exchanging the item. However, it’s better to think of these moments as valuable lessons rather than setbacks and apply them to a more financially responsible you in the future.