Should I be saving or spending more?
This is a question I would ask myself each time I was tempted to buy something I didn’t need. I would try to justify each purchase as necessary, finding excuses like “It’s a gift for Mom” or “I’ve been having a bad time”.
My relationship with money was at best strained, and this was mainly due to my shopping habits. This made it difficult for me to save, and I ended up being in debt.
In the current financial situation, every penny counts, especially for median-wage earners, who live paycheck to paycheck. Let us just say that I like to shop and buy things, whether I need them or not. This is followed by a depleting current account, zero future savings, and living in financial dread.
I spent years changing my relationship with money and spending, and today, I can say that I have a successful habit of saving.
Today, I am sharing my story with everyone who needs it. I feel you!
Invest Your Money
When I have money in my wallet, it becomes difficult to beat the temptation to spend it. To curb that feeling, I have started investing in pension funds, bonds and mutual funds.
The money is auto-debited as soon as I receive my salary. The logic behind this is simple – if I have less money in my account, I can spend less money and save for a future windfall. This strategy has really helped me save money and reduce my expenditures.
Become Aware of Your Spending Habits
It’s important to understand the triggers behind your spending habits. Are you an emotional shopper? When are you most compelled to shop? What’s your preferred way to spend – credit card, payment wallets or cash?
It becomes easier to control your finances when you understand your spending habits. If you are more prone to spending online, delete the shopping apps from your phone or maybe turn off the Internet at night, so you aren’t tempted to click ‘buy now’ while mindlessly browsing. Similarly, if you are prone to reaching for your credit card when window shopping, try setting a lower credit card limit than you currently have.
Ditch Plastic Money for Cash
Swiping your credit card or scanning the QR code to pay from your payment wallet is too easy and convenient and often causes you to purchase more than you’d intended to. The best advice I have ever received to curb my spending habits is to ditch the credit card and uninstall payment wallets from my phone.
I solely rely on cash for every transaction, whether it’s Christmas shopping, eating out or buying groceries. This has made me mindful of what I can ‘afford’ to buy. Besides, if I run out of cash, I’d need to make a trip to the cashpoint. A little walk isn’t just good cardio but also helps you change your mind about an impulse purchase.
No Spend Days
We are all aware of cheat days for dieting. Similarly, for those guilty of overspending, having no spending days can be a great solution. Mark out a day or two every week when you won’t spend money. This excludes any money spent on travel, medication or emergencies.
You should make a conscious effort not to eat outside and instead take this opportunity to cook your own meals. If you are bored, choose to read a book, take a walk in the park, or simply rearrange your home instead of shopping or scrolling through shopping apps. It might feel like a struggle in the beginning, but once you get going, you’ll feel accomplished and empowered.
Look for Better Ways to Manage Your Emotions
Did you have a bad day at work? Have you recently had a breakup? Avoid random impulse purchases as a coping mechanism for stress, anxiety, and other negative emotions. This is not only an unhealthy way to deal with these feelings, but bad debt can often aggravate your mental health issues. Instead, try meditation, seek help from a therapist, or talk to a friend.
A great tip that I personally follow is to sleep on my shopping cart. In the past, when having a meltdown, I would invariably end up on a shopping platform and add a few products to my cart, clicking “buy now” to deal with my feelings. Now, I have learnt to sleep on it. The next morning, those purchases don’t seem as ‘life-saving’, making it easier for me to avoid impulse shopping.
Stop Feeling Guilty About Shopping
Feeling ashamed or guilty of your spending habits can take an emotional toll. It’s okay to sometimes splurge on yourself, whether it is treating yourself to a fancy restaurant or buying a pair of shoes. We work very hard to earn our money, and while saving for the future is essential, enjoying the present is equally important.
The idea is to strike a balance between gifting yourself something once in a while or going overboard every single day.
Wrapping Up
This was my account of how I stopped feeling about my spending habits. I hope this helps those who might be in the same situation as I was. Shopping is addictive because it activates the same hormones and activates the same brain areas as spending time with loved ones.
You can live a financially secure life with a little budgeting, self-control, and awareness of your spending patterns.
Are you ready to stop feeling guilty about your spending habits and manage your expenses better?
