Looking at friends’ purchases may influence Canadians to buy items beyond their budget, according to a new poll released July 23 by investment firm Edward Jones. The poll also showed that 93 per cent of Canadians say they experience buyer's remorse.
Ninety-six per cent of those aged 18 to 34 experience remorse following a purchase, showed the poll. Baby boomers were not far behind with 90 per cent feeling the same way.
The poll also indicates that 61 per cent of Canadians often look to their friends and wonder how they can afford their lifestyles. This was felt most among those aged 18-34 (71 per cent) and 35-44 (66 per cent) who are curious to understand how those around them finance their purchases.
Canadians are most likely to regret tangible purchases (83 per cent) such as clothing/shoes, jewelry and electronics. They regret less experiential purchases at 71 per cent.
Spontaneous spending hurts long-term goals
"Understanding how you spend money is important when considering your short and long-term goals," said Roger Ramchatesingh, Director, Solutions Consulting at Edward Jones. "For example, if you know you enjoy spending money spontaneously, build this into your monthly budget. When it is unplanned for, it can add up over time and hurt other long-term goals such as retirement or the purchase of a home."
Ramchatesingh says it is never too late to put your finances in order. "A financial advisor can help develop a financial strategy that addresses what is most important to you and help you towards the lifestyle you desire...It's clear that when people have a financial strategy in place and work with someone they trust, they feel more comfortable with their finances."