Impulsive spending is not easy to stop as it gets habitual after you’ve done it for a long time. But if you want to get rich, you need to learn how to stop spending money anyhow.
According to PM News Wire, an April 2020 Poll Shows Average American Spends $182.98 on Monthly Impulse Buys, Up From $155.03 in January 2020. Hence, it shows this is a problem for so many people.
So, this article will seek to intimate you with exercises that will teach you how not to spend money excessively.
Why Do People Spend?
When properly evaluating the reason people spend most time unnecessarily, you will realize that they all have reasons they tag ‘Geniune Reasons’. Nonbody or impulse spender believes that he or she is not spending for a good idea or reason. Let’s get an insight about why most people spend:
Most people spend because of pressure they get from friends. There are two sets of friends: friends that earn higher than you and friends you earn higher than.
With friends that earn higher than you around, you will also be tempted to meet up or keep up, thereby encountering financial stress.
On the other hand, with friends, you earn higher than, you will always be encouraged by them to spend money even when it’s not necessary just to prove your loyalty.
Social Media has been a two-edged sword, while it has helped to connect people with their loved ones, it has also been one of the major reasons people go through financial stress.
What do I mean?
On social media, you meet people with different backgrounds and statuses. They showcase the best side of their lives which you also imbide that feeling of being among.
You want everyone to also know you’re doing great too and that can lead to overspending on wear and luxurious goods.
People also spend unknownly. Just by a tap or click, a debit alert shows up immediately. This is one of the disadvantages of using credit cards to debit.
The environment one finds himself in can also be a reason they spend. Basically, they’re certain environments that make you want to spend or make you feel obligated to spend. For instance, if you’re where there are craft fairs, shopping malls, home shows, you tend to spend impulsively.
Get Good Feeling
As funny as this might sound, it’s true. Most people spend just to feel good or better. For instance, when they’re moody, they see shopping as a way of getting a quick shot of happiness, so they take off to Target or Home Goods.
They Also Have their Credit Cards
The portability of credit cards has made it easier for people to spend. Study shows that when you’re paying with plastic (especially with a credit card), that you spend way more.
You have a built-in mindset that you automatically send $100 to Chase every month, so it doesn’t matter anyway. It’s already built into the budget to pay $100 to Chase. It’s technically in the budget, right? Wrong! It’s still debt and overspending.
How To Stop Spending Money
Here are how you can stop spending much:
#1. Have a Budget
A budget is merely a guideline. With a clear mind, you build it ahead of time. When you’re in the moment, you’re less likely to succumb to willpower.
Making a budget will assist you in spending less. Before purchasing, you will decide where you want your money to go and use it as a guideline.
If it’s within your reach, go ahead and buy it. If it is not in the budget, it should be postponed. Some people are hesitant to create a budget.
Consider it similar to making a financial plan for yourself. Much like you can make a meal schedule, a menu plan, and so on.
#2. Have Cash Instead of Credit Cards
Making a payment with cash is another way you can cut down your spending. This is one habit you must cultivate if you really want to stop spending. The truth is, you’ll feel a bit uncomfortable spending cash than using your credit card.
And even if you’re using a credit card, don’t store your card information in the machine by clicking the ‘remember button’.
#3. Have Short Term Financial Goals
Setting some short-term, attainable financial targets is a perfect way to stay motivated while you change your spending habits.
Setting financial goals will help you figure out where you want to go with your money. It’s difficult to get to your destination if you haven’t prepared ahead of time.
Don’t try to accomplish so many tasks all at once. Simply set three small goals or behaviors to focus on each month. You can use our money goals sheet to keep track of your goals every day, as well as your rewards.
#4. Know What Triggers You
Another way you can stop spending is by knowing what triggers your spending. Do you find it fun and satisfying spending on friends, buying stuff, or spending once you enter any mall? Answering these questions will help you curtail your spending habit.
#5. Have a shopping List
Stop shopping if you don’t have a list. You’re more likely to pick up items you don’t need (especially at the checkout counter).
When you walk into a store without a list, you’re more likely to go down every aisle to ensure you “remember” everything, but you still end up spending more than you expected.
#6. Invest Your Money
Investing your money is one habit that can help you cut down on spending. Because if the money is right there in your account, you’ll be tempted to spend it on one important thing or the other.
But when you budget all your income- allocating them to something and investment, you can curb your overspending habits.
In other words, By proactively deciding what you want your money to do and where it should go, your financial awareness increases. And, having that awareness goes a long way in helping you make smarter financial choices.
#7. Avoid Spending on this you don’t Use
Another habit that can help curb your spending is not spending on things you don’t need immediately. For instance, don’t buy clothes you don’t wear.
They may look beautiful, but if you know they won’t suit your body or give you the satisfaction you crave, don’t bother buying them.
This is because these clothes can sometimes go unworn in your wardrobes. So all you have to do is to take care of the ones you have and if possible learn to use accessories to revamp your old outfit.
#8. Don’t Spend on Expensive Coffee
Yes, coffee is very important, but you don’t have to spend extravagantly just to have a cup. Instead of going for expensive coffee, you can brew your coffee at home. At least it will be cheaper.
You can also go for coffee alternatives such as a good tea which contains a good dose of antioxidants and minerals.
#9. Plan Your Feeding
Make a budget, make a meal schedule, and bring a calculator with you when you go grocery shopping. And never go hungry – it’s too easy to overspend.
You’ll be less likely to shop on impulse just for convenience if you only go once a month. In between, replenish with milk and bread.
#10. Try a no-spend Challenge
A no-spend challenge is an excellent way to break the cycle of overspending. A no-spend challenge can last a day, a weekend, a week, or a month.
You are not required to do it for a full month. If you’re just getting started, I suggest doing it for a day or over the weekend.
Applying any of the aforementioned steps in your daily life will help you curtail your spending activities.
Yes, it might look difficult at the beginning, but it is worth cultivating because the first step to having a buoyant financial future starts with having zero financial stress. Think about it!
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