We all have been there—An outfit you just tried on looks perfect, but it’s a bit too pricey. Should I treat myself or put it back on the rack? Although the decision seems insignificant in the moment, in the long run these expenses will add up quickly. Making smart choices on small decisions is what can make or break your spending for each month. Here are some tips you can use to control that urge to splurge:
Write Down Purchases
If you want to buy something, write it down on a list and put the list away. After waiting a week do you still want that item? Having a designated cooldown period can help you think clearly about whether the purchase is necessary or just hard to resist. People always say, 'don't go grocery shopping when hungry'. The same goes for when emotions are running high. Stress, anxiety, and depression can lead to unnecessary spending just like hunger.
Budgeting Tools
One key aspect of budgeting is looking at where your money is going and thinking about whether your purchases align with your values. If one of your values is to eat healthier for example, look at how many times per month you eat fast food and create a limit for the next month. This way, you not only save money but get closer to your goal of cooking healthy meals at home. This may even give you enough extra savings each month to join a fitness class to help further your goal.
Have a List
Think of it like grocery shopping—If you go in with an empty stomach and no list, you may end up purchasing what satisfies your cravings but forget the essentials like milk and eggs. It is more efficient to look at your pantry and write down a list of what you need to refill those basic goods. You can use this method with other purchases as well: say you need some new work clothes. You could go out and browse until you find things you like, or you could look in your closet and write down what you really need to replace, such as a new belt or another pair of pants. Being mindful about what you are looking for helps a lot when you are met with overwhelming options in the store.
Consider Withdrawing Cash for your “Fun” Spending Budget
One great aspect of carrying cash is that once it runs out, you need to consciously take out more before spending again. Swiping a card makes it easier to overspend, because we are not seeing the money leave our hands but rather seeing it show up on our bank statement later. Having a set amount of cash is a great way to budget when going out for fun or shopping and it gives you peace of mind knowing you can enjoy your day without regretting any purchases.
Decreasing Exposure to Advertisements
Advertising is becoming more and more prevalent on our phones, in our emails, and on social media. It used to be easier to ignore ads because they were irrelevant to you, but now tailored ads have made it so you only see ads that pertain to your specific interests and habits. If you are an artist for example, you may get an add like “Professional Painting Set: Now on SALE!” rather than an ad for something irrelevant like a new car that you have no intention of purchasing. Just as you may have skipped an ad on television by changing channels or fast forwarding, you can avoid online ads by scrolling past or unsubscribing.
Set Aside a Splurge Allowance
Although saying “no” to every purchase that is not essential sounds straightforward, it is not very realistic. Of course, there will be times when we do deserve to splurge a little, so setting expectations can make it easier to do so without regret. Create a splurge allowance—Whether that is a small amount you take out in cash each month or a portion of each bonus, something that does not detract from your savings goal. For example, allow yourself one lunch out per week, or one Starbucks run per week, so that you don’t always have to say “no” to things that bring you joy. Doing so will make those treats that much sweeter because you know you have set aside the money ahead of time and are not cutting into savings.
Conclusion
Making these slight adjustments has the potential to add up to substantial savings and solidify good habits over time. Making purchases that align with your values is a great way to stay on track and save for those bigger goals. If you are already practicing one or more of these tips then you are already on the right track!