If you struggle with overspending, you’ve probably heard this misguided advice: Just cut out your daily trip to the coffee shop.
And if you’ve followed this advice, it’s likely you quickly learned that you didn’t suddenly have thousands of dollars at your disposal or finally have enough money to buy a home. That’s because the cycle of overspending goes much deeper than a few dollars here and there on a cappuccino.
Impulse spending or consistently spending more than you earn may be linked to underlying emotional issues. It could also tie back to your childhood and the way you were raised to think about money. I teach my clients to learn to identify their money triggers -- such as stress, exhaustion, anxiety or loneliness -- so they can make different choices to address the root problem, rather than using money as a band-aid.
As a money coach and CEO of Save My Cents, I say, enjoy your daily cup of coffee if it brings you joy. Instead, try a few of these unconventional tips to help you finally end your overspending cycle.
1. Avoid shopping when you’re hungry
Just like in those Snickers commercials, when you’re hungry you can’t think clearly, and “you’re not yourself.” You may have heard not to shop for food on an empty stomach, but research shows you’re more likely to overspend across the board when hungry. People who shop while hungry spend 60% more, on average, than those who shopped while they were less hungry, according to a University of Southern California study.
And it’s not surprising. Hunger triggers a wanting sensation. If you shop before you eat, you’re more likely to try to satisfy this craving by overspending.
The next time you’re preparing to run errands, try eating before you go. If you’re not hungry, pack a snack in your car or bag to have something to eat on hand just in case, so you’re not tempted to buy food or other items that can drive up your spending.
The same rule applies to online shopping. If you frequently impulse buy, consider your hunger level first. If it’s been a few hours since your last meal, take a break, get some food and then see if you still want to make the purchase.
2. Don’t make a buying decision when you’re stressed
Stress can hinder your ability to make decisions. It puts your body and brain in fight-or-flight mode, making it harder to stick to your budget. If you’re stressed after a long day of work, you may do DoorDash takeout because you’re too overwhelmed to think of what to make for dinner. Or you might browse Amazon to calm your mind. Using shopping as a coping mechanism for stress can feel good in the moment, but repeatedly falling into this trap can take a toll on your finances. And, you won’t be addressing the underlying issue.
Sometimes the simple act of being aware of what kind of mental and emotional state you’re in can help. You can be kind and say, “OK, I’m not in the best frame of mind right now, let’s exit that shopping cart and come back to it another day.” You can also find other ways to rewire your feelings when you’re feeling stressed. Try going for a walk or watching a show to clear your mind before making any money decisions.
3. Set a 24-hour freeze on new purchases
Have you ever made a purchase in the moment that you later regretted and wondered what caused you to pull the trigger in the first place? We all have. Setting a 24-hour freeze on new purchases can give you more time to consider if it’s something that you need or that aligns with your spending goals. Aside from essential purchases, I like to make sure I’m confident in my decision to make a purchase before swiping my card.
Here’s how it works:
When you’re thinking about buying something, give yourself a minimum of 24 hours to think about the purchase before checking out. If you’re shopping online, you can add items to your cart and leave them there overnight. Many of my clients have found this tip gives them time to reign in their impulsive feelings and consider if the item aligns with their budget, values and money goals.
An added benefit of waiting at least 24 hours? Some retailers might send you a coupon or discount via email.
4. Pay attention to reviews
If you’re like me, you probably get excited about a new purchase -- be it a vacuum, headphones or an iPhone. But oftentimes, we build up an ideal expectation of what we’re buying. This way of thinking can convince you that an item is better than it actually is.
For instance, you may see a new espresso machine with all of the bells and whistles you want. So you justify wanting the item maybe because the machine will cut out your daily coffee run to help you save more money. Then, even if your espresso maker isn’t as impressive as you had hoped, we use this reasoning to justify the purchase and avoid disappointment.
(I’ve fallen into this trap before with a Dyson vacuum cleaner.)
However, once the newness of an item passes, we become more objective. You might be able to admit the new espresso maker is too difficult to operate or expensive to maintain. To prevent getting into this situation in the future, I recommend reading product reviews from people who have owned the item you want for a few months or more. If the reviews from established owners are overly critical or negative, you may want to rethink your purchase and opt for a lower-priced alternative. At the very least, make sure you can return it easily if you encounter similar issues.
5. Beware of influencer recommendations
This is probably the least intuitive of all my tips, but it can help shift your mindset. Many people make purchases that represent success, happiness or something they believe is unattainable.
Have you ever purchased something when influenced by a social media account you follow or when served an ad for a lifestyle you aspire to lead? We all have. But once that item arrives, your life doesn’t magically change. Instead, you may end up dealing with another item taking up space in your home and a credit card bill that keeps growing.
To this day, I still remind myself that the grass is not always greener on the other side, and that social media is just what people choose to share about themselves. The lifestyle you’re aspiring to might not be as realistic as the influencer you’re following makes it appear.
My two cents
Even though I’m a personal finance expert, I don’t recommend setting too many rules when it comes to spending. Think of these tips as guidelines that can help you identify when you’re likely to spend more money and whether or not those purchases are adding value to your life. It’s all about having a healthy relationship with both spending and saving.
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