Mindful spending is all about being aware of your financial choices and making decisions that align with your values and goals. By incorporating mindful spending into your daily life, you can improve your financial wellbeing and feel more in control of your money. Here are 12 tips to help you get started.
1. Use a Mindful Spending Mantra
Create a short phrase or mantra that encapsulates your mindful spending philosophy. This might be something like “Is this a need or a want?” or “Does this align with my values?” Repeat your mantra to yourself before making a purchase to help you stay focused on your goals.
2. Set Financial Goals
Having clear financial goals can help guide your spending decisions. Whether you want to save for a down payment on a house, pay off debt, or build an emergency fund, write down your goals and create a plan to achieve them. Break your goals down into smaller, achievable steps.
3. Create a Budget
A budget is a plan for how you’ll allocate your money each month. Start by listing your income and all your necessary expenses, such as rent, groceries, and utilities. Then, allocate funds for your financial goals and discretionary spending. Stick to your budget as closely as possible.
4. Wait Before Making Purchases
Before making any non-essential purchases, give yourself a waiting period of at least 24 hours. This will give you time to consider whether the item is something you really need or want, and whether it fits within your budget. Often, the urge to buy will pass with time.
5. Avoid Lifestyle Inflation
As your income grows, it can be tempting to increase your spending as well. However, this can lead to lifestyle inflation and make it harder to reach your financial goals. Instead, try to maintain your current lifestyle even as your income increases and allocate the extra money towards savings or debt repayment.
6. Compare Prices
Before making a purchase, take the time to compare prices from different retailers. Look for sales, discounts, and coupons that can help you save money. Don’t assume that the first price you see is the best deal.
7. Buy Used or Borrow
Consider buying used items instead of new ones, especially for things like clothing, books, and furniture. You can often find great deals at thrift stores, consignment shops, and online marketplaces. For items you’ll only use once or twice, consider borrowing from a friend or renting instead of buying.
8. Avoid Emotional Spending
It’s easy to turn to shopping as a way to cope with stress, boredom, or other negative emotions. However, this can lead to overspending and guilt. Instead of buying something, try a different activity to cope with your emotions, such as going for a walk, talking to a friend, or practicing a hobby.
9. Unsubscribe from Marketing Emails
Marketing emails from retailers can be a constant temptation to spend money. Unsubscribe from as many of these emails as possible to reduce the temptation to make impulse purchases. If you do need to buy something, search for the item directly instead of browsing sales emails.
10. Plan for Splurges
It’s okay to treat yourself occasionally, as long as it fits within your budget. Plan for these splurges by setting aside a small amount of money each month in a “fun fund.” This can help you avoid overspending on impulse buys and enjoy your treats guilt-free.
11. Use Cash Instead of Credit
When possible, use cash instead of credit cards for your purchases. This can help you stick to your budget and avoid overspending. Withdraw a set amount of cash each week for your discretionary spending and once it’s gone, wait until the next week to spend more.
12. DIY When Possible
Before buying something new, consider whether you can make it yourself. For example, you might be able to make your own cleaning products, cook meals from scratch instead of buying pre-made, or make gifts instead of buying them. DIY projects can save you money and give you a sense of accomplishment.