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If you've ever had second thoughts about those shoes you bought while you were in a bad mood, you're not alone.
One in four Americans make purchases they later regret when experiencing significant stress, according to a Thriving Wallet survey. (Thriving Wallet is a new partnership between Thrive Global and Discover that launched with a mission to improve consumers' financial well-being.)
Is it going to be something that will give you sort of a momentary lift and then become a burden because you have to worry about how to pay your credit card bill?Arianna HuffingtonFounder and CEO of Thrive Global
Below, CNBC Select shares tips on how you can reduce regret and save money on spur-of-the-moment purchases, with insight from Arianna Huffington, founder and CEO of Thrive Global.
Practice the 72-hour rule
If you're stressed out, it can be a good idea to temporarily hold off on making any purchases. Instead, add the item to your wishlist and wait 72 hours before purchasing it.
Many times, you may forget about the item altogether, especially if it was a spur-of-the-moment idea. But if you still want it 72 hours later and have the money to pay for it, you can feel better about making the purchase.
"Often decisions around what we buy and buying things that we can't afford are so associated with our sense of identity and what we feel we need in order to function in our lives," Huffington tells CNBC Select.
Huffington suggests asking yourself a few questions to decide whether a purchase, such as a new bag, is worthwhile:
- Do you really need that bag?
- Is that bag essential for your survival?
- Is it going to be something that will give you sort of a momentary lift and then become a burden because you have to worry about how to pay your credit card bill?
Redeem credit card rewards
If you're under stress and want to make a purchase as a pick-me-up, consider redeeming any credit card cash back, points or miles to cover the cost.
Many of the best rewards credit cards allow you to redeem rewards as a statement credit to offset your bill or for gift cards. If you're having a bad day a you could redeem points from the Chase Sapphire Preferred® Card (see rates and fees) for a gift card to a clothing store, such as Bloomingdale's or Macy's.
Take advantage of shopping discounts
Many credit cards offer exclusive shopping discounts when you pay with your credit card at select merchants. If you have a credit card backed by American Express, Chase or Bank of America, you can benefit from rotating offers which typically give you either a percentage or set dollar amount of cash back, credited to your account. In some cases, you may receive extra points.
For example, you might get a $15 statement credit when you spend $75 at a specific store, on top of the rewards you'd usually earn. These offers require activation and you must pay with your eligible card.
Offers also vary based on location and credit card and usually only last for a limited time. Plus, you may have to meet a minimum spending requirement, and there are maximum earning benefits.
Use statement credit perks
If you have a card that provides annual statement credits, such as the American Express® Gold Card, use them to your advantage. With the Amex Gold Card, you can benefit from an up to $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
