Micro Habits to Stop Overspending
In this blog I’ve outlined some micro habits you can implement to stop shopping addiction, compulsive buying, overspending and just become more intentional about where your hard-earned money goes. Most of us work really hard for our money so it's such a shame to then just carelessly spend it on things that aren't really meaningful and things that you just don't need.
Becoming more conscious and intentional about where your money goes not only positively affects your financial situation and your financial future but it also makes you feel like you're living a more intentional life. It's honestly liberating to not be in this constant consumerism trap that almost feels like a hamster wheel, It always seems to never be enough and you keep buying because there's always a new thing that you want and you're just never satisfied. It's not a good plan for a long-term happy future.
Spending Audit
The first thing we need to do is become very aware of what the problem is in the first place. We want to get as much information about it as possible so we can then actually tackle it. One thing I really recommend doing is a spending audit. This is where you would go back and see where your money is going and exactly how much of it is going towards different areas of your life. Then you're going to be able to highlight your pain points which could be something like eating out too much or shopping for clothes too often. Write it all down so you know what you're working with and then you can investigate when you have a really strong need to spend money and figure out why.
For example, I noticed that when I felt sad I would typically buy loads of snacks or even get a takeaway instead of eating the meal I had planned. It's so helpful to write it down first of all because awareness of a problem is a problem half solved. Just having this awareness can help you find other ways to deal with it in a healthier way. An amazing question you can ask yourself when you're trying to figure this out is “if I'm being honest with myself right now, what problem in my life am I trying to solve by spending money?”
What’s important to you?
Another thing we really need to look at is your values. What is actually important to you because I can guarantee it's not that thing that brings you instant gratification! Think about the things that actually create long-term satisfaction and happiness. Also, how do you want your money and time to serve you? It's important to consider a budget and becoming financially aware isn’t about cutting yourself off from all the joys of life, it's just about creating a plan tailored to you of how you're going to spend your hard-earned money. For me, it’s spending money on experiences but also putting money into my first house deposit. These are things that will actually bring me long lasting happiness instead of things that make me happy in the moment when I buy them and maybe for like a day or two and then most of them collect dust and become forgotten about. Another big one for me is investing in myself, for example a gym membership is worth the money to look after my mind and body.
First reset
To get started with a new mindset or routine it’s a good idea to have a little reset because you've probably had these spending habits for a long time. One thing you can do that will very clearly show you your habits and these needs to buy and spend is a low or a no spend month. So that means you'll have a month where you only spend money on absolute essentials such as food and bills. You can completely tailor this to your own lifestyle and have certain allowances, for example maybe it’s a friend's birthday so you will budget a bit of money for that. The key is to make it realistic so you can stick to it, and not make it too restrictive. Doing this low buy or no buy month is going to help you so much again to see these habits and to have a little reset and then you can create a new plan for the future.
Second reset
One thing that really helped me was doing a reset of my stuff! Doing a big declutter can be such a wakeup call because you can see roughly how much money you spent on meaningless things. This can be so eye-opening to how much money you have wasted and you can also spot the specific areas in which you may have overspent. Get rid of it all and you’ll feel like a weight has been lifted and you can have a real fresh start.
No buy list
The next thing you’re going to do is make a list of things you are no longer buying. So after you’ve done your spending audit and your reset, you will already have a bit of an idea about the things you no longer need or are no longer worth it to you. For example, maybe you already have 5 different pairs of jeans, so this could go on the no buy list because you genuinely don’t need to buy any more. Maybe you've realised that you're consistently buying new foundations even though you have one that you love and haven't even finished yet, so this will go on the list until it’s finished and then you’re allowed to buy a new one. A rule I give myself is to not purchase items when I still have them so if I already have a shampoo and it hasn't run out yet I'm not going to buy a new one until it runs out.
Strong money goals
Another very important one is to have strong money goals! This will help you because you're going to feel like there's a reason for you doing all of this and creating new habits that aren't always easy. Maybe your goal is to pay off your debt or save enough money for a deposit on a house or invest a certain amount of money. It’s really going to help and keep you motivated!
Tracking your money
Another thing that we've already touched on a little bit is tracking your money and budgeting. It is so helpful because you actually see where your money goes consistently every single month and then you can adjust it accordingly. Maybe one month you realise you spent way too much money on something so it's something to be aware of for next month. Another thing is when you're tracking your money it can be so satisfying to see the amount of money you put aside and save, like it's almost a challenge for you to keep increasing it.
I hope you enjoyed this post and found it informative! Make sure to follow me on social media and subscribe to my YouTube channel for more money saving and shopping tips.
