Psychology of a bargain: Why people spend more during sales – and how to stop

Experts explain how discounts trigger emotional spending and share simple strategies to avoid falling into the trap

Sales can entice shoppers to unintentionally spend beyond their budget. Getty Images

Black Friday, Prime Day, Cyber Monday – it feels as though there’s always a “can’t-miss” sale and it’s never been easier to buy with just one click. But while snagging a bargain delivers an instant rush, is it doing more harm than good?

Amazon recently reported its biggest ever sales during its four-day Prime Day event in the US, where Americans spent an estimated $24.1 billion online, according to Adobe Analytics.

But while buying the latest tech or new clothing can feel good in the moment, what does deal-chasing really do to our wallets – and our well-being?

Shopping can make you feel good – but only briefly

Shopping does make people feel good, at least temporarily. The activity – especially when finding a good offer – can boost the brain’s release of dopamine, the same “feel good” chemical involved in eating chocolate or receiving a compliment.

“It creates excitement and anticipation, making the purchase feel more rewarding than it actually is,” says Dr Salman Kareem, specialist in psychiatry at Aster Clinic, Discovery Gardens JLT and Aster Royal Clinic, Downtown. “The thrill of finding a 'good deal' provides immediate satisfaction.”

But while the psychological thrill drives many purchases, it doesn’t always have to end in regret. With the right mindset, sales can also be approached strategically, says Carol Glynn, founder of Conscious Finance Coaching.

“Major sales events like Prime Day or Black Friday can financially benefit consumers if they are mindful, planned for and used intentionally,” she adds. “If you’ve already budgeted for a big-ticket purchase, done your research, and waited for a sale to make the purchase, then yes, it can be a smart financial move.”

When a bargain isn’t really a bargain

However, that same feel-good rush can also lead to buying things that aren’t needed, meaning people splurge on offers that aren’t truly useful or wanted.

Getting a good offer while shopping can boost the brain’s release of dopamine. Photo: Claudio Schwarz / Unsplash

“These tactics trigger our brain's fear of missing out. We tend to grab on to things if we believe they're rare, so ‘limited time’ offers make us act quickly without fully thinking,” says Dr Kareem.

“Certain phrases like ‘one day sale’ or ’90 per cent sale’ activate our emotional brain centres while bypassing the logical thinking areas. This makes it harder to pause and consider whether we actually need the item.”

Glynn puts it simply: “If you're buying something just because it's discounted, you're still spending, not saving.”

Like any unchecked behaviour, uncontrolled shopping habits can quickly spiral, especially thanks to the ease of shopping online.

“One-click checkout and constant online sales have fundamentally changed how people manage, or often lose track of, their spending by making purchases extremely quick and seamless, which encourages more frequent and impulse buying,” says Glynn.

She notes that Cornell University research shows that one‑click checkout users spend nearly 30 per cent more on average, placing 43 per cent more orders and buying 36 per cent more items than before. “This speed and convenience reduce the mental effort that usually makes us pause before buying, leading to more impulsive purchases,” she explains.

But this instant gratification can also be addictive. “It can create a vicious cycle where you need more ‘shopping therapy’ to feel good,” says Dr Kareem. “This can lead to financial stress, cluttered living spaces and the realisation that material purchases don't create lasting happiness.”

When sales backfire

Alison Soltani, founder of UAE savings website Leap Savvy Savers, agrees that people tend to spend more when they believe they’re getting a good deal. But she warns against mistaking discounts for savings.

“Most of the time, I think sales encourage people to overspend and perhaps spend money they hadn't planned to because something is 'a good deal' or 'on sale'. But if you don't want or need the item, you haven't saved any money – you’ve added another item burdening your life,” she says.

“It’s great if you find an item you really need, or have been searching for a while, that comes up on sale – then you’ve secured a bargain. But otherwise, you haven’t.”

Experts say that spending on an item that's discounted isn't saving but still spending money if it isn't truly needed. AFP

Soltani also notes that excessive shopping can take a toll beyond finances. “Depending on what we are buying, our purchases may have a negative effect on the environment and make our homes and minds cluttered. This can lead to overwhelm and a resistance to taking action to make changes,” she says.

Although a purchase here and there may seem harmless, Glynn warns that these small expenses can quickly add up, often leading to overspending or debt without much to show for it.

“Constant deal-hunting can cause stress and decision fatigue, which might influence poorer financial choices and overall well-being. The fleeting satisfaction from bargains can perpetuate a cycle of compulsive buying,” Glynn adds.

Dr Kareem adds that for many, the consequences go beyond finances. “Overspending often leads to financial anxiety, shame and relationship conflicts. It can also prevent people from developing healthier coping strategies for stress or difficult emotions,” he says.

Practical ways to shop smarter

For those who struggle to decide whether to make a purchase, there are some practical steps that can help.

Dr Kareem recommends making shopping lists and sticking to them, giving yourself time before making an initial purchase, and finding alternative ways to relieve stress or stay entertained. Glynn advises creating a sales-specific budget, using only cash or a debit card to pay and unsubscribing from marketing emails to reduce temptation.

Using a debit card or cash while shopping is another way to stick within budget. Getty Images

Meanwhile, Soltani suggests pausing checking out – whether in-store or online – and waiting 24 hours to see if an item is still wanted. She also recommends asking a few simple questions, such as:

“How many hours have I had to work to make this purchase?”

“How often will I use it?”

“If I lost the item in a fire, would I quickly replace it?”

“Could I buy it cheaper second-hand or at a different retailer?”

For many, shopping is a source of enjoyment and instant gratification. But for those who overspend as a way of coping, Dr Kareem says it may be time to seek help: “If someone uses shopping as their primary way to cope with emotions, it's time to seek professional support.”