We Need This in Canada: ImpulseSave
Last week, I shared the first of three posts I have planned on the topic of startups I believe Canadians have a need for. While my first post was targeted to the debt repayment progress so many of us need help visualizing, in order to stay on track, this second post is about a tool that could be used by people living either with or without debt.
When was the last time you stood in line at the grocery store for so long that you tossed an extra magazine or pack of gum into your shopping cart, even though you had a stack of unread magazines and extra packs at home? Now think about the extra items you pick up while shopping, because they are “such a good deal.” Do you have any idea how much your impulse buys add up to – in a week, month, or year? ImpulseSave does and they want you to save every penny that you don’t spend.
The process for using ImpulseSave is simple: set a goal, link your accounts, and move your money every time you stop yourself from making an impulse purchase. Sounds too easy to be true, right? But learning how to save isn’t always an easy lesson. As the site says, “Let’s face it. The world is set up to get you to spend more, not save more.” Because of this, we are sold on the idea of needing the newest, fastest and best of everything, no matter what the cost. And so we give in.
We give into everything, from buying the same item of clothing in multiple colours to upgrading technology every few months. We let the latte factor take over our finances, without realizing we are giving up control. And we do so without thinking twice, because we think we “need it” or “the deal is too good to pass up.” But ImpulseSave is trying to change the way we think. By making us stop and question if a purchase is a want versus a need, ImpulseSave is teaching us one of the most difficult life lessons to learn: self-control.
Currently, the average ImpulseSave user is saving between $3,000 and $4,000 per year. That’s money being saved for big ticket items, vacations, etc. that may have taken twice as long to save for, had so many impulse purchases not been avoided. Successful ImpulseSave users are living proof that we don’t need more unread magazines laying around the house, tubes of lipstick lost in our purses, and DVDs we will only watch once and then shelve to collect dust. It is possible to save strategically and still live a life with everything we “want.”
To read more about how ImpulseSave works, read through their site. If you’re in the U.S. and have a savings goal (or a few) in mind, I’ve heard wonderful things about ImpulseSave from friends in the personal finance community, and suggest you look into it further.
The way that I’ve always saved is not so much by impulse saving but rather by setting up an “expense” budget item each month titled “xx% to savings”. Then whenever I would get paid the first thing to “pay off” would be to taking xx% of my net (after taxes & deductions) salary and depositing it in a safe savings investment account. After that “pay myself first” task was done then I didn’t sweat it if I sometimes spent a little in impulse buying – assuming of course that in total I didn’t spend more in a month than what I earned. That last point is very important.
We’re glad you’re as thrilled about ImpulseSave as we are! Impulse purchases are dangerous, and while it’s true that letting yourself indulge every once in a while is alright all the small transactions we do without thinking certainly add up. Thanks for the recognition and good luck with the rest of your personal finance journey!
Thanks for the comment!
I love the concept behind ImpulseSave. A large portion of people get into debt in the first place because of impulse purchases. This a great way to help you cut out those purchases.
Couldn’t agree more. Impulse purchases are more than just coffee’s and magazines; they are almost anything that is unplanned and often not at all budgeted for. ImpulseSave to the rescue!
I know, this is such a good idea!
This reminds me of ING’s Small Sacrifices which works in Canada.
Yes! A reader emailed me this morning to tell me about Small Sacrifices. How terrible is it that I’d never heard of it before!? I’m so happy we have something similar in Canada!
I wouldn’t be worried, you’re a busy lady! I use it occasionally to bump my small change into my savings account. It stops me from buying chocolate all the time.
Ha! Will it stop me from drinking Starbucks?
I can appreciate the concept of ImpulseSave and it could be of benefit to those who need help in curbing their spending and also serving as a kickstart to seeing their savings grow.
As a Canuck who now lives in the US I use ING Direct for my chequings/savings for years and I have never heard about ING’s Small Sacrifices until now! I need to check this out!
Do it! It’s fantastic!
AND they are a TechStars company (where I work) which makes them even awesome-er.