In tough times we have a tendency to treat ourselves with small purchases. Add them up though, and they can easily derail your first home deposit.

We tend to associate impulse buys with low-value purchases. A snack bar here. A night out there. It all sounds pretty harmless, but the spending adds up.

Research by Finder[1] shows that these small treats can blow a big hole in our bank balance. How big? The study found Gen Zs are spending about $74 a week on impulse purchases. That’s the equivalent of $3,848 a year spent on everything from chocolate at the checkout to beauty products promoted by an influencer on social media.

It’s not a small spend when you’re saving for a first home.

Sure, Gen Zs aren’t the only culprits when it comes to impulse buys. However, this is the demographic most likely to be saving for a first home.

As Finder’s Rebecca Pike explains, while impulse buys are often associated with smaller purchases like sweet snacks and drinks, they can also be seen in big-ticket items like a last-minute holiday or designer gear.

She notes, "When times are tough, some people tend to 'treat' themselves more as a way to lift their spirits.

"But this habit can become a headache, especially if they are living beyond their means."

BNPL could be fuelling your impulse buys

The scary thing is that impulse spending isn’t just about reaching for a debit card.

The uptake of Buy Now Pay Later (BNPL) could be linked to the trend.

Finder data shows 2 in 5 (40%) Australians have used a BNPL service in the past 6 months.

BNPL is offered by virtually every retailer now, and it can make out-of-reach purchases seem affordable. The crunch can come when keeping on top of payments becomes a struggle. This can especially be the case if you have multiple BNPL accounts.

Tips to stay on top of spending

Being aware of your spending habits is a good starting point to prevent impulse buys acting as a roadblock to buying a first home.

Plenty of apps are available to help each of us track spending. But ultimately, it’s about taking a moment to take stock.

If you’re tempted to make an unplanned purchase, take a breather. 

Ask yourself how much you really need or want the item and weigh it up against how good you’ll feel when you turn the key to the door of your first home.

If you’re considering buying a first home, contact your local Raine & Horne agent for an obligation-free market appraisal. 

 
[1] https://www.finder.com.au/news/impulse-purchases-2024