Money Coach Shares Strategies to Eliminate Overspending
Master Financial Wisdom and Curb Your Overspending Habits
In a world filled with distractions and temptations, staying on budget and spending wisely can be challenging and for some, it might be impossible. While most financial experts advocate for saving money, there are lesser-known strategies that can also contribute to financial stability. While overspending, you might have noticed that stress and anxiety additionally contribute to spending more. Shang Saavedra, a money coach and CEO of Save My Cents, shares some unconventional yet effective advice aimed at managing finances and curbing the urge to overspend.
1. Avoid Shopping on an Empty Stomach
Advertisers are increasingly using commercials to promote the mindset of "when hungry, grab a snack." Studies have shown that individuals tend to overspend when they enter a store on an empty stomach. Hunger triggers cravings, leading people to feel inclined to purchase more than they need. As a result, shopping while hungry can significantly impact one's wallet.
2. Don’t Be Swayed Away by Influencers
Today, platforms like TikTok have become avenues for educating people, but they've also given rise to shopping spree videos. While these videos may occasionally offer money-saving tips, more often than not, they influence us to purchase items we don't need. Many of us have succumbed to the allure of lifestyle influencers promoting expensive clothing items, often accompanied by discount codes. Such impulsive spending not only leads to unnecessary expenses but also results in higher monthly credit card bills, potentially affecting our credit scores if payments are missed.
3. Monitor Your Stress Levels
Feeling stressed can lead to impulsive behaviors like stress eating or shopping, as it triggers the body's cortisol levels and affects mood. However, it's important not to use stress as an excuse for excessive spending. When not in the right frame of mind, it's helpful to pause and reassess. You can try telling yourself, "I'm not in the best state of mind right now, so let's leave that shopping cart and revisit it another day." This simple strategy can prevent impulse purchases and promote better financial decisions.
4. Implement a 24-Hour Shopping Freeze
Impulse buying is a common phenomenon, often leading to regrettable purchases. To combat this, a straightforward solution is to implement a 24-hour freeze on shopping. Step away from your cart or put off the purchase for a day. This provides ample time to reconsider your decision. If after the waiting period, you find yourself no longer inclined to buy, it likely was an impulsive purchase. As Shang says, "Prioritize ensuring confidence in your purchase decisions before swiping your card."
5. Consider Reading Verified Reviews Before Purchasing
Excitement often accompanies the launch of new products, whether it's headphones or washing machines. However, the desire to acquire these items can lead individuals to justify their purchase with unreasonable explanations. It's essential for consumers to identify their convincing triggers and rely on verified customer reviews to determine the legitimacy of a purchase. These reviews offer insights into the experiences of people who have used the product over time, including any drawbacks they may have encountered. By incorporating this practice, individuals can avoid spending on items that may not prove useful in the long term.