Mindful Spending: 5 Simple Habits To Save Money
Mindful spending is the opposite of mindless spending. Instead of purchasing anything you want and desire without really taking the time to consider it, mindful spending is the total opposite. You take the time to observe and analyze how you’re spending your money, and approach it with a more centered and aware mindset.
It is about becoming more mindful of your spending habits and choices to prevent overspending and overconsumption.
Mindful spending comes with major perks:
- You save money
- You become more aware and in control of your spending habits
- You change your approach to money
- You reduce your general consumption and avoid overspending
5 habits to practice mindful spending
1. Notice when you’re mindlessly spending
As always, reflection is a great place to start when you’re considering changing and incorporating new habits. It’ll help you gain a full vision of your current situation and help you identify what’s causing you stress or whatever reason you’re seeking change. When it comes to money, it starts with your spending habits, obviously, but most importantly, where you’re spending the most of it, usually mindlessly.
Mindless spending occurs when you make purchases without awareness and conscious thoughts. For many people, this is the result of impulse buying. So finding out when and where it generally occurs is your starting point if you want to change or improve your spending habits. Because determining the source gives you clarity on what to do, what to fix, and what to avoid doing.
To help with this there are two things you can do:
- BE MINDFUL
This is an easy one. Instead of being mindless, simply be mindful instead. Be present and aware of your thoughts and feelings when you’re making a purchase (either online or in a shop). Take the time and pay attention to how it makes you feel, and your thoughts.
- TRACK YOUR SPENDINGS
This is the way to find out when and where you’re making the most of your mindless purchases. I like to call these my ‘spending triggers’. These are the moments and places where I’m usually more tempted to fall into mindless spending. So this is all about identifying your own patterns and triggers, really. Budgeting apps or journals are great places to record your spendings and notice your patterns.
For example, I know that, for me, shopping with friends or family is my most potent ‘spending trigger’. So I always try to keep this in mind when I’m going out with them. I’ll try to remember not to follow the compulsion just because I’m enjoying myself and the moment. And often, this is all I need, just the reminder that even if I feel like I want it now, I probably won’t later on, so I try to remain mindful of this. (This usually works great for me.)
And let’s be honest for a moment here, how many times have we purchased things on the moment, and by the time we get home, or even a couple of days later, we regret our purchase because it doesn’t make us happy after all?
2. Wait a bit (one week or two at the minimum)
Not waiting before purchasing is a huge culprit for overspending and overconsuming things we don’t really need, isn’t it?
And this is really one of the best money-spending tips I’ve ever received in my life: Wait before you purchase something.
The idea is to give yourself a waiting period when you find yourself wanting to purchase something. Maybe two or three weeks, if not a month. Then you go back to it and see if you still want it or if the desire has abated or is gone now.
This way, it also gives you the time to properly evaluate your desires and your needs and priorities, and consider its necessity. Is it something you want or need? Is the purchase driven by a genuine need or a fleeting desire?
If you can’t wait for as long as a couple of weeks, then decrease your waiting period to one or two days, and if it’s even more urgent and you’re in a shop, then spend at least 10 or 15 minutes with the item in your hand. Often, it’s enough time for the initial spark to abate, and then you realize it was only a fleeting desire and you don’t actually want it.
Waiting is mainly about riding the wave of sudden, impulsive desire until it’s passed.
3. Have a wishlist
I love having a wishlist because it’s a great tool to help me keep track of my desired purchases while keeping everything organized. It also helps with spontaneous buying.
This step goes hand in hand with the previous one. When you’re taking the time before purchasing something, put it into a wishlist in the meantime.
Tips on how to use your wishlist to avoid spontaneous buying:
- Prioritize and categorize
Categorize all your desires from the most wanted and important to the least. It’s all about priority. Then go back to your list to revise and review every couple of weeks. You can also list down all the pros and cons of each item.
- Budget for the items on your list
This one is about allocating a specific sum from your budget to your wishlist items. This helps you not go overboard with overspending while remaining mindful and intentional with your purchases. This one is all about intentional choices.
4. Use cash
Use cash and don’t spend more than this allocated sum.
We all like digital transactions. They’re convenient and fast. However, using cash can help create a more tangible connection to our spending while also giving us a clear visual of how much we have and how much of it we spend (as long as we’re in a shop and not online).
This cash one always works great for me. Usually, I go about it this way: I allocate a specific sum of cash for non–essential purchases and I don’t spend more than this. I don’t cross the line. So when it’s gone, then it’s gone.
It gives me a visual (which cards don’t do) and it offers a clear limit to my spending. And again, it’s great with intentional spending. It forces me to really consider my options and be mindful before going ahead with a purchase. And just like before, it helps from overspending. Because when the cash is gone, then you’ve reached your limit.
Also, feeling cash during the transaction makes the action more real (at least it does for me) so it makes me more mindful of my spending choices.
5. Consider future costs and impact
When we purchase something, usually we’re very short-sighted about it and only look at how it makes us feel in the moment, or the monetary cost. However, we might forget to consider future costs and impact. Mindful spending, after all, is being mindful of every aspect of a purchase.
So, what should you consider when you’re making a purchase?
- THE FUTURE COSTS
How much what you’re purchasing will cost in time and room? Purchasing something has more than just monetary cost.
Either timely cost, like how much time you’ll have to spend cleaning it. Or room cost, and how much room it’ll take once at home (especially if you’re minimalism inclined, or simply wish to avoid and prevent clutter and useless or unnecessary possessions).
Also, maybe consider the environmental and social impact as well, especially if you’re trying to live a more sustainable life.
- THE EMOTIONAL IMPACT
Consider the emotional impact too. Before making a purchase, ask yourself how it will make you feel in the long run. Will it contribute to your well-being and happiness or not? Will you still desire it once you have it or not? Will it bring you lasting enjoyment or not?
The key, again, is to try not to succumb to a fleeting desire and be mindful of how you genuinely feel beneath it.
- QUALITY OVER QUANTITY
Considering investing in quality over quantity is always a good strategy to save money and avoid overconsuming, and overspending in the long term. The key with this is to opt for quality items that will bring more lasting value rather than just succumbing to the allure of cheap, short-lived purchases that you’ll have to buy once again after a while.
Investing in quality and paying a higher upfront price now means that you’ll save money in time because quality items usually lead to longevity, and so you won’t have to replace your item, like you would if you’d opted for the cheaper option.
As always, less is more.
Bottom line
Mindful spending is all about becoming mindful and intentional with your spending habits instead of being mindless and succumbing to the compulsive urge of fleeting desire. It’s about taking the time to consider costs and emotional impact before making a purchase that won’t make you happy and offer you long-lasting joy and pleasure.
Practicing mindful spending can help you save money, prevent overspending and over-consumption as well as reduce unnecessary possessions and clutter, while helping you foster more intentional thoughts and awareness with your spending habits.
So this is it.
As always, if you have any tips or tricks to help with mindful spending, please do not hesitate to share them in the comments.
I wish you an excellent day, and don’t forget to be kind to yourself. You deserve it.