STOP Needlessly Spending Money (6 Tips)
Every Sunday I send out something to think about, a question to ponder and something to try to make your life a little more pleasant. The idea is to inspire and encourage positive change. Readers share their progress so we can all benefit from the learnings.
THINK
As Huwrietta walked through the shopping mall, she couldn’t help but feel a sense of excitement. The stores were filled with beautiful clothes, products, and accessories that she just had to have. She had been working hard and deserved to treat herself.
She walked into a clothing store and a beautiful, sparkling red dress caught her eye. She tried it on, and it looked stunning. Her heart was pounding with excitement. Without a second thought, she handed over her credit card and bought it.
As she left the store, she realised that she had spent much more money than she had planned. Her heart sank. Huwrietta couldn’t shake the feeling that she had just made a mistake. She spent money she didn’t have on something she’d barely wear, and now she’d struggle to get through the month. This wasn’t the first time she had needlessly spent money. Her credit card bill was increasing every month and she couldn’t seem to break the cycle.
But Huwrietta not’s alone…
We’ve ALL bought things that seemed like a good idea at the time, but later regretted. So, how do we take back control and finally break the habit of needlessly spending money?
Here are 6 ways to stop needlessly spending money:
1. Open a Guilt-Free Spending Account
It’s extremely difficult to avoid spending altogether, so don’t. Open a totally separate bank account, with a separate debit card. Allocate a set amount or percentage of your wage to it every time you get paid to spend guilt-free. 5-10% of your wage is a good start.
I call mine the ‘Drugs, Alcohol and Hooker’ account. I can spend this money on absolutely ANYTHING. Zero justification required! But here’s the kicker…
Once it’s gone, it’s gone. You’ll need to earn more or wait until the next payday to splurge. Allowing yourself a little wiggle room, can prevent falling off the wagon altogether. Money is there to be enjoyed, so enjoy it in moderation.
2. Identify Your Triggers
What tempts you into spending money unnecessarily? Is it a stressful job, lack of sleep or boredom? Understanding your spending triggers can help you identify potential fixes.
Plastering over the cracks (with spending) isn’t helping anyone. Get to the root of the problem. Changing jobs, focusing on self-care or becoming more productive might curb your impulses.
3. Beware of the Domino Effect
If I open a packet of chocolate biscuits, I will eat half a packet within 30 seconds. If I drink a glass of wine, I will drink 2 or 3 and overeat that evening. All of this culminates in me hating myself and soothing myself with more food and booze.
Some people tell me, just limit yourself to 2 biscuits or 1 drink. I’ve tried that and it doesn’t work. I’m an addict. It’s far easier for me to NOT buy choccy biccy’s and wine and avoid the battle of will’s altogether.
What are the chain reactions in your life that lead to more spending?
Browsing on Amazon, walking around a shopping mall or scrolling through social media. Cultivate your self-awareness and tune in to what harmless actions trigger multiple more harmful actions and avoid them altogether.
4. Plan Ahead
Intentionally save money in advance for upcoming big spends like holidays, cars or a new TV. Allocate a set amount or percentage, once again, every payday where you build up a savings pot for these items. Don’t rely on credit cards or loans (unless they’re interest-free).
They purposefully make spending too easy. The thought of having to save up for a holiday, car or TV is off-putting and annoying – Good! Work for it!
Understand how much effort goes into affording a big ticket item, rather than escaping reality through debt.
Planning ahead helps to reduce impulse buying and overspending.
5. Cancel Credit Cards
Leading on from the previous point, if you struggle with financial discipline, cancel your credit cards. I do the same with booze and choccy biscuits, and avoid them altogether.
Commit to spending only what you’ve saved in your Guilt-Free account. If you want more, go and earn more – just keep to your original allocation (ie. 10% of everything you earn).
6. Delay Gratification
Instead of buying something immediately, wait a week or a month to decide. Create a gap between the impulse to purchase and handing over your cash to get back control. If you still want the item in a week or month, then use your Guilt-Free spending money and go for it.
The gap in itself is sometimes enough to realise you didn’t really want the item. It was simply an impulse and you avoided it.
Practising discipline and control in this way will build a layer of confidence that will serve you in the future. Next time an impulse strikes, you’ll be that much more resilient to it.
Reflect and share this with someone.
ASK
If you’d like to become more financially disciplined, consider the following questions:
“What are my triggers to impulse spending?”
“What ONE thing can start or stop doing to avoid them?”
Write down what comes to mind.
TRY
Try your hand at one of the suggestions above. Create a Guilt-Free spending account, cancel your credit cards or delay gratification and see how you get on.
Don’t expect overnight success. Just take a single step towards a more financially disciplined life this week and HIT REPLY to let me know what you did.
Remember: Little by little, a little becomes a lot.
SHARE
Comment below and share how it went for you.
If you tried improving your spending habit this week, COMMENT and share your wins with the world.
