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Mindful Spending can be difficult when targeted ads and algorithms know you better than yourself. Here are my best tips to help you shop and spend your money more mindfully!
Money and personal finance advice is centered around 2 key themes:
- Make more money
- Spend less money
Depending on your circumstances and your money goals, one of these will surely apply.
If you’re in the spend less money camp, most advice (at least what I have encountered) is related to budgeting, frugal living, couponing, and aggressively paying down debt.
While that might work for others, to me, a lot of the advice seems restrictive. And it often makes me feel ashamed of my spending habits.
Little splurges like my favorite lattes or new plants bring me joy. I hate being told what to do. And being told not to spend money on those items seems counterintuitive to my money philosophy.
My personal philosophy around money is that money in itself offers little value. But rather it is an important tool to get you where you want to go in life, and the impact you want to make.
Plus I don’t really get a thrill from finding the best deals, coupons, or travel hacking with multiple credit cards. The time spent on these activities is not what brings me joy, and it feels like a chore, soul-sucking and inconvenient.
Reflecting on my emotions around these activities has made me realize that for me personally, practicing mindful spending is the best course of action.
That means, that I’m spending money on the things that bring me joy, or conveniences that serve my time and energy. As long as my splurges are infrequent, or are helping me to get closer to my goals, it is okay to spend the money.
5 Tips for Mindful Spending
Mindful Spending can be difficult when targeted ads and algorithms know you better than yourself. Here are my best tips to help you shop and spend more mindfully!
Reflect on your spending
Reviewing your credit card transactions every month is a good habit. It can be a great addition to your financial self-care routine.
While doing this, I like to also look through the transactions and categorize them as wants or needs. For those items that were in the “WANT” category, I reflect on them a little more.
- How was I feeling when I made the purchase?
- Do I still feel that way about the items I bought?
This habit has translated into me thinking about these questions before I purchase something. Will I feel good about this when I reflect on this at the end of the month, or will it leave me feeling guilty for spending that money?
It has also helped me recognize emotions like stress or boredom. If there is a repeated pattern of these feelings, I can now act on them!
Tip: This habit is inspired by reading a little about Kakeibo (a Japanese budgeting system). I am not following it the way it is intended, but rather my own twist on it. \
Retail Therapy is not Real Therapy
This tip is from personal experience. Retail Therapy used to be frequently part of my lunchtime walks. I often would have stressful mornings filled with meetings or desk drop-ins. Thankfully, I also worked in downtown Toronto, not too far from some of my favorite stores.
Spending lunchtime, especially in the winter months, browsing through new shoes, or candles quickly become my way of getting away from the hustle of my job. It was the 15 minutes of quiet time I would get during the week, without constantly being bombarded with urgent requests.
Knowing I only had a few minutes of time to myself, also meant that I was impulsively buying things I didn’t need in a bout of stress and anguish. Eventually, I realized I was over-extended and burnt out at work. Shopping was a coping mechanism for me. Since I’ve quit my job, I haven’t found the same pleasure in impulse shopping, so I can be sure that shopping was my form of therapy.
Thankfully, I never went into credit card debt to fund this habit. But I could have saved or invested some of that money towards other goals.
Sleep on it, Add a Pause
I used to become obsessed with certain items that I would see on my lunchtime walks. So I added a new rule, I would take a walk without my credit card. Then if I was still thinking about those shoes or that lipstick at the end of the day or the next day, I could go back to the store and purchase it.
Adding that additional point of friction allowed me to pause and reflect on whether I really wanted the item or a trigger for emotional spending.
If you’re shopping in person:
- Wait a day before you back into the store.
- Ask yourself, Will you use that item in the next week? If not, it’s not something you need right away.
If you’re shopping online:
- Don’t automate payments with apps like Apple Pay. The added effort of entering credit card details can help hinder impulse purchases.
- Make it a point to look for coupons. For me, this added step between Add to Cart and Checkout has stopped me from a lot of impulses about late-night shopping. Or it can help you save a little for items that you really want or need.
Avoid Temptation
Unsubscribe from brand emails or social media accounts that tempt you. I’ll be honest, marketing works on me! I am often tempted by sales or new arrivals.
Whether it’s from browsing Instagram or getting email notifications, I might be aware of the many tactics brands have at their disposal, but it’s hard to avoid targeted ads and algorithms that know me better than I know myself.
Social Media can also bring temptation from the people we know. I have talked about Lifestyle Inflation before. there is a lot of temptation to try and keep up with the latest fashion trends (or kitchen gadgets – as I seem to gravitate towards in my 30s). It’s easy to convince yourself to buy something just because you can afford it.
Rather think about how it fits into your life:
- Will it bring you joy?
- Will it save you time?
- Will it help conserve your energy?
The best way to keep clear of these temptations for me is to avoid them. That is why I strictly follow my quarterly digital decluttering checklist. Turns out it’s great for my mental health and my wallet!
Mindful Spending Aligns with your Goals
Finally, though I think this is my favorite tip for mindful spending – Remind yourself about your money goals.
Some purchases can actually help you get closer to your goals. Courses to help you learn more, tools and services to save your time and conserve your energy can actually help you get to your goals quicker.
Whether it’s to be able to buy a house, start a business, travel more, whatever your goals are, ask yourself some of these questions:
- Will this purchase bring me closer to my goals?
- Will the money spent here make me (or someone else) happier?
- Opportunity Cost – can I use this money in a different way to get me closer to my goals?
At the end of the day, money is only as good as what it can do for you. If spending money brings you joy, or closer to your life goals, that is the best use of it!