Published on July 6th, 2023
Unhealthy spending habits can wreck lives. The guy who loves to flash his cash to impress the ladies can easily end up in debt because he spends more than he earns.
The girl who shops to fill an emotional void will likely suffer the same fate.
Problem spending is often inextricably linked to debt. People who can’t rein in their spending almost always have credit card debt and worse.
The good news is that unhealthy spending is a habit, and like any habit, with a bit of effort, it can be broken.
1. What Triggers Your Spending?
The first step you must take is to identify what triggers your spending. Think about your state of mind when you go on an internet spending spree. Are you depressed, bored, or trying to impress someone?
There are many different triggers for bad spending and everyone is different, but the only way to overcome the problem and build a strategy that works is by understanding why you feel the need to spend money on things you don’t need.
2. Use A Budgeting App
Spend a month tracking your spending habits. This will help you spot patterns and identify unhealthy habits.
For example, you may spend more at certain times of the month when you are feeling stressed at work, or perhaps your trigger is a friendship group who have more disposable income than you and you have a bad case of FOMO.
Download a budgeting app and enter all your spending, no matter how small. At the end of the month, analyze it all and look for instances of impulsive spending or purchases that can be classed as unnecessary.
3. Have A Financial Goal
Having a goal can make it easier to put the brakes on your spending. If you are saving up to get married, for a house deposit, or even for a vacation, this may give you some extra willpower.
The more important your goal, the easier it will be to stop wasting money. And once you get used to saving, you are less likely to fall back into poor spending habits.
Look at ways you can save money in all areas of your life, such as any investments you have. Look for coupons and discount codes for different financial services, so every dollar you save works a bit harder.
4. Try Using Cash Not Plastic
Debit and credit cards, apps like Apple Pay, and services like Klarna make purchases super easy, but they are a bit too convenient for people with poor impulse control and a love of frivolous spending.
If you have zero self-control when you see something you want, consider sticking to cash.
Work out how much cash you need for the week, to pay for things like groceries and fuel, and then stick it in your purse.
Remove all cards and apps and work with cash only. Once the cash is gone, you have to make do. It’s a tough lesson but one that will pay dividends if you stick it out.
If there is something more expensive you wish to buy, force yourself to wait at least 24 hours before you hit ‘buy’. Having some breathing space often helps prevent impulse purchases.
5. Find A New Hobby
Spending money is a hobby for some people. When they are bored, they go shopping.
Don’t be that person. Instead, find a new hobby, such as jogging or learning a second language. Your brain and bank account will thank you.
It can take time and effort to break bad spending habits. If you are struggling, consider having a few therapy sessions to explore your triggers and identify any underlying issues that might be causing you to self-sabotage.
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