360° Coverage : Shopping Under The Influence: Why Money And Alcohol Don't...

2 Updates
Shopping Under The Influence: Why Money And Alcohol Don't Mix
Photo Credit: Forbes Business

Shopping Under The Influence: Why Money And Alcohol Don't Mix

Dec 19 2013, 8:24pm CST | by

By Marisa Torrieri On a random Saturday night in November, Fairfield, Conn., Jon Renner, 28, had no plans—but he did have a bottle of vodka and a Wi-Fi connection. So he poured himself a glass,...

Filed under: news

 
 
 

36 weeks ago

Shopping Under The Influence: Why Money And Alcohol Don't Mix

Dec 19 2013, 8:24pm CST | by

By Marisa Torrieri

On a random Saturday night in November, Fairfield, Conn., Jon Renner, 28, had no plans—but he did have a bottle of vodka and a Wi-Fi connection. So he poured himself a glass, kicked back and decided to indulge in some “me” time.

A couple of drinks later, he found himself watching a professional video game player on YouTube lead a tutorial on the game “Hitman: Absolution.”

“I was watching him play, and after a while I was like, ‘Wow, this seems like a game I could really get into,’ ” says Renner, who works in the music industry. He proceeded to log into his Amazon account, add it to his cart and buy a couple of CDs too.

“ I was feeling happy,” he says. “When you’re a little drunk, you feel confident, you feel like everything’s a great idea. So I was like, ‘You know what, I’m going to buy this!’ ”

After putting the game and CDs into his cart, Amazon suggested other games in the series he might like—so he bought those too. Total cost: about $70.

“I slept on it, then I woke up, looked at my emails and was like, ‘Oh, crap, I did that last night?’ ” he recalls.

While Renner’s most recent financial damage wasn’t severe, he admits he also bought a plane ticket for $350 online—after a couple of cocktails—to see a friend in another state. And his experience highlights the ease with which we may tend to spend once we’ve had a bit to drink.

Retailers, too, have caught onto this slippery slope: In fact, Saks, Nordstrom and Urban Outfitters have all applied for liquor licenses to incorporate bars into their retail environment, according to recent news reports. In the past year, Nordstrom doubled its food-service operations, which includes a full bar, as well as six new lounges and restaurants.

But the consequences of shopping under the influence can be costly, as those who’ve had to examine their banking statements after a bender can attest.

The Haul: What Happens When We Shop Drunk

Of course we all have wants: The problem with shopping and drinking is that it can make us infinitely more impulsive.

RelatedShopping Secrets of Department Store Workers

For Elizabeth Croydon, 43, a comedian and movie maker from Washington, D.C., it only took a couple of Grey Goose vodka and olive martinis before the urge to spend set in on her recent visit to NYC.

“I was on Broadway, had two martinis, and all of a sudden I started craving a Betsey Johnson bag,” she recalls. “So I went downtown, popped into an upscale thrift shop I knew about and bought one.”

Unlike Renner, Croydon doesn’t regret her $80 buy. But she does acknowledge that alcohol plus retail therapy can produce mixed results. And, like Renner, she’s done it more than once.

“I had a bunch of beers years ago when I was living in Cleveland, and bought a bunch of toys for adults,” admits Croydon. “And I don’t mean adult toys, I mean toys like rubber balls and Frisbees.”/>/>

And there’s more than one way to let alcohol dent your budget: While biologist Darby Jones*, 37, wasn’t drinking when she convinced her husband to let her drop $400 on a rug, she made sure to make the entreaty when she knew he was.

“He was out, super drunk, and I was home online shopping, so I called him up and said, ‘Hey, can I get this rug?’, and he said ‘Sure,’ ” says Jones. “ When he sobered up, he said: ‘Did I really agree to that?’ ”

How to Know If You Have a Problem

Having the occasional glass of wine while visiting your favorite flash sale sites may not be a problem, unless, of course, you’re trying to stick to a budget. Or if you have other compounding issues.

“People who drink may be prone to other impulse-control problems because the part of the brain that’s involved—the reward center—is driven by both of those activities in slightly different ways,” says David Sack, an addiction psychiatrist and CEO of Promises Treatment Center in Southern California. “We see a fair number of people who, in addition to drinking excessively, go through spending sprees where they literally buy up the store and have tremendous remorse and regret because they may not even remember having done it.”

RelatedThe Shopping Embargo: My Annual, 8-Week Buying Fast

Specifically, adds Dr. Hersh Shefrin, a behavioral economist and professor at Santa Clara University, drinking alcohol impacts three areas in our brains: The cerebellum that directs how we move, the limbic system that directs how we feel, and the cerebral cortex that directs how we analyze, solve problems, remember, and learn.

“Brains are like computers with lots of communication between the different parts,” says Shefrin. “We all know what it’s like when some kind of glitch—hardware or software—slows our devices down. Well, that’s what even a little too much alcohol does to our brain’s ability to get us to move gracefully, be well balanced emotionally, and think clearly.”

Studies seem to back this up, says Shefrin, and have shown that alcohol makes exercising self-control more difficult because it dulls neuro-communication links in the brain that warn people when they’re making mistakes.
/>

Related5 Bad Money Habits That May Be Genetic

“Moreover, even when people who have been drinking are aware they are making a mistake, alcohol can interfere with them feeling badly about it,” he says. “Spending responsibly usually means facing temptation and not giving in. Drinking while shopping makes it difficult for shoppers to face down temptation, so it becomes easier to overspend.”

Smarter Shopping and Imbibing Tips

Not everyone who has buyer’s remorse after an alcohol-fueled expenditure needs professional help, says Sack, but there are ways to protect yourself from this type of retail regret.

1. Know your triggers: Katie Brewer, a CFP® with LearnVest Planning Services, says she helps her clients identify their spending triggers so they can outwit them. “A lot of times it’s something in particular. For example, the spending starts when they start getting down, or when they get really stressed-out at work and that’s what they do to let off some steam,” she says. “It’s good to recognize what might set you off and head off that temptation.”

2. Bring a list: “It’s really better to always go in with a plan,” says Brewer. “So, for example, if you set a budget ahead of time that you’re going to spend $400 on Christmas gifts, reevaluate when you’ve spent $100 and when you’ve hit $200, and figure out how many people you have left to buy for, and if you need to adjust to stick to your $400.”

3. Create distance: If the temptation to shop is too great when you’re drinking, you can minimize the damage by keeping your credit cards at home, or, if online shopping is your thing, in another room. “It could have gone a lot worse,” says Renner, who usually keeps his wallet in his bedroom when he’s in his living room with his laptop. Even having to cross the room can make you less likely to complete the transaction./>/>

4. Shop before you drink: If the mood strikes for a martini when you’re at the mall, it’s OK to indulge—just save it for post-purchase celebrations. “For example, do all your shopping first, bring your list in with you, know how much you’ve got to spend, then have your drink afterward,” says Brewer.

*Name has been changed.

LearnVest Planning Services is a registered investment adviser and subsidiary of LearnVest, Inc. that provides financial plans for its clients. Information shown is for illustrative purposes only and is not intended as investment, legal or tax planning advice. Please consult a financial adviser, attorney or tax specialist for advice specific to your financial situation. Unless specifically identified as such, the individuals interviewed in this piece are neither clients, employees nor affiliates of LearnVest Planning Services. LearnVest Planning Services and any third-parties listed, discussed, identified or otherwise appearing herein are separate and unaffiliated and are not responsible for each other’s products, services or policies.

More From LearnVest

6 Times We Tend to Overspend (and How to Stop)

Bargain Shopping 2.0: The New Rules for Scoring Deals

4 Ways to Trick Your Brain Into Banishing Bad Money Habits

Source: Forbes Business

 
Update
2

3 days ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new company (NewCo) and slashing the workforce of ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

4 days ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the double tragedies of MH370 and MH17" hits ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Nigeria to get Japanese drug for Ebola treatment
Abuja, Sep 2 (IANS) Nigeria will soon get a Japanese drug to treat Ebola, the country's Health Minister Onyebuchi Chukwu said Monday.
 
 
Japan to aid connectivity upgrade in northeast India
Tokyo, Sep 1 (IANS) India and Japan Monday decided to strengthen cooperation for improving connectivity and socio-economic development in northeastern states of India.
 
 
Three Ebola cases recorded in Nigeria oil hub
Abuja, Sep 1 (IANS) At least three cases of Ebola virus disease (EVD) have been recorded in Nigeria's oil hub of Port Harcourt, where a fatality was confirmed last week, the country's Minister of Health Onyebuchi Chukwu said here Monday.
 
 
India, Japan to elevate strategic partnership
Tokyo, Sep 1 (IANS) Prime Minister Narendra Modi Monday said relations with Japan were of the "highest priority" for his government and announced a slew of initiatives, including turning the strategic partnership into a "special" partnership and a fast-track channel for Japanese investors.
 
 
 

Latest from the Network

Eight killed in France building collapse
Paris, Sep 2 (IANS/EFE) As many as eight people have died due to a building collapse in Paris till Monday, French emergency management services said. Firefighters had recovered before dawn Monday the bodies of two...
Read more on Politics Balla
 
Modi focuses on women's empowerment, education
Tokyo, Sep 2 (IANS) Prime Minister Narendra Modi Tuesday stressed on the need for women's empowerment in the present-day world as he began the fourth day of his visit to Japan. Modi, who was addressing students of the...
Read more on Politics Balla
 
George Clooney's back pain continues
Los Angeles, Sep 2 (IANS) Almost 10 years after filming the Oscar-nominated movie "Syriana", actor George Clooney is still feeling the effects of his on-set back injury. The actor traveled to Duke University earlier...
Read more on Celebrity Balla
 
Carrie Underwood is pregnant
Carrie Underwood is pregnant. The former 'American Idol' winner, 31, and husband Mike Fisher announced on Twitter tonight (09.01.14) that they're expecting their first child together. The blonde beauty posted a...
Read more on Celebrity Balla
 
50 Cent buys son miniature car
50 Cent bought his son a miniature car for his birthday. The 39-year-old rapper - whose real name is Curtis James Jackson - surprised Sire with a little Mercedes ML450 SUV, a smaller representation of his own vehicle,...
Read more on Celebrity Balla
 
Kirsten Dunst criticises Apple for leaked photos
Kirsten Dunst has hit out at Apple after naked photographs of her were allegedly leaked online. The 32-year-old actress took to her Twitter account last night (09.01.14) to criticize the American multinational...
Read more on Celebrity Balla
 
Daisy Lowe feels 'rubbish' without exercise
Daisy Lowe feels ''rubbish'' if she doesn't exercise at least three times a week. The 25-year-old model admits she maintains her enviable figure by working out on a regular basis, but she still enjoys tucking in to...
Read more on Celebrity Balla
 
Paul Smith collaborates with Led Zeppelin
London, Sep 2 (IANS) British fashion designer Paul Smith has collaborated with legendary rock band Led Zeppelin for his latest scarf collection. The London-based designer has teamed-up with the band to create the...
Read more on Celebrity Balla
 
US continues air strikes against IS in Iraq
Washington, Sep 2 (IANS) US forces continued their attack on Islamic State (IS) militants in northern Iraq with three more air strikes conducted Monday, the army said. The strikes destroyed three IS trucks and...
Read more on Politics Balla