How to Cut Back on Impulsive Spending
Spending money on impulse doesn’t necessarily mean it is luxury. We buy pretty boring things like household cleaning products . Research shows that we love buying things that are practical and useful, which makes impulsive spending even more dangerous.
When you buy boring things, you don’t have to think twice. It doesn’t seem like much, so you add it to your Amazon cart and keep going with your day. Most of us can benefit from a little more awareness of our spending, and spending rules can help. Here are five of my favorites.
Rule 10/10
Let’s say you find a quality coffee maker for sale for $ 30. You don’t really need a new one. And you have other bills to pay, but here you are at Bed, Bath, & Beyond, and this Bonavita is under resolution, and you’re not sure if you should just give in and show off. I mean, you really do drink that much coffee .
I set the 10/10 Rule for these situations to stop wasting time and money on impulsive purchases. I give myself ten minutes to think if I should buy something. If, after ten minutes, I’m still not sure, I put the item back if it’s worth $ 10 or more. If it’s $ 10 or less, I’ll just buy it and stop wasting time. In other words, I spend:
- No more than $ 10 for a frivolous purchase
- No more than 10 minutes to think about it
With this rule, you give yourself enough time to think about your expenses, but not enough time to waste it. It also ensures that you set a cap on your spending, ideally keeping your budget intact. Feel free to change the rules as you see fit, but this is what suits me. More often than not, I put the item back. Merely having a rule reminds me that impulse buying is about to happen and this is probably not a good idea.
Rule “to use”
There have been variations of this rule for a while, but the idea is the same: Calculate how many times you will use the item you are about to buy, and then calculate the price per use. From there, set a “per use” spending limit like $ 1.
Let’s say you’re thinking about buying a new $ 400 robot vacuum cleaner. Maybe it’s also on sale at Bed, Bath, & Beyond stores – they’ve got some nice deals on this day. You estimate that you will have it for five years and you will use it once a week. It’s 260 times. At $ 400, your cost per use is $ 1.50. If your spending limit is $ 1 per use, it may not be worth the purchase.
It’s not a perfect rule of thumb – maybe the extra 50 cents is worth it because your apartment is drowning in pet hair and you lose your mind about cleaning it every week. Or maybe you’re using a rule of thumb to justify spending on shit you don’t really need – yes, this Bonavita is great and you’ll get great value for money per use, but hey, your current coffee maker is working fine and your budget is already tight.
There are times when this rule can let you down, so just use it as a starting point for your decision. Remember, the idea here is just to think a little more about your purchases, and the “to use” rule will certainly help you with that.
The “wait a week” rule
A friend introduced me to this rule. If he wanted to buy something over $ 100, he forced himself to wait a week, even though he knew he was probably going to buy it. Thus, he gave himself the opportunity to rationally think about the purchase. “It also gives me time to do my research and make sure I get the best deal,” he told me.
Modify the rule as you see fit. Wait 24 hours for any purchases over $ 25, for example. Or wait a month for anything over $ 100. Making yourself wait will not only help you make a more informed and rational purchase, but it will also make you feel a little better. Instead of feeling sorry and powerless over money, you made a decision, made a decision, and everything is in charge. This seems like an unpleasant, offensive thing to worry about, but never underestimate the power of emotion when it comes to money.
Rule “splurge to save”
This is one of my favorite impulse spending rules because it’s a win-win. Even if you spend money, you are still (kind of) good at money. Here’s how it works: Save a certain amount every time you agree to an impulse purchase. This amount can be the same as the ruiner, the ruin percentage, or any other arbitrary amount you like.
For example, if your “splurge to save” rule says “I will save 50% of the cost of everything I buy that I don’t budget for,” this coffee maker will cost you $ 45. ($ 30 waste, $ 15 savings). This way you save money no matter what decision you make. If you don’t spend the money, well, you still have money in your pocket. If you spend, you still save. You will have to think a little longer about each purchase you make, because it will cost you even more.
Wasteful budget
Okay, that’s not a rule by itself; this is the limit that you put on your impulsive spending. By definition, impulsive spending is unexpected. As much as you might expect to have unlimited willpower and give up everything, if you are human (and if you are reading this, chances are good that you are), you will succumb to the temptation to spend a point on something. You can also set some boundaries for yourself.
Set aside $ 25, $ 50, or $ 100 – whichever is right for your income – to waste every month. Yes, ideally, you would never waste mindlessly, but again, this happens. However, with a budget for it, you are prepared for the worst. (And you can still resist spending!)
It also helps you keep your expenses in check. Without restrictions, you are more likely to buy Bonavita and a robot vacuum cleaner. You will tell yourself that you only live once and you don’t want it covered in cat hair. And then you completely wipe out your budget. By setting the limit, you allow yourself to say yes from time to time within reasonable limits. So bet on that number.
Pampering yourself every now and then is okay (I mean, even dogs deserve a treat), just do as you can and don’t sacrifice your financial well-being later. The treat is so much more enjoyable when you know you can still pay the rent. Set a few rules for yourself and you can use your willpower with a little less effort.