Limit Impulse Expenditure by Focusing on the Space Between Stimulus and Your Response
Impulsive spending can be an insidious little budget destroyer. We all know this and there is no shortage of tips to fix it. However, if you want to understand the root of your impulse spending problem, focus on the gap between the impulse and your action.
Certified Financial Planner and Financial Expert Carl Richards explains this concept in the video above. When it comes to impulsive spending, personal finance focuses on two things: incentive and response. For example, incentive-focused advice might be to delete stored payment information or stay away from transaction sites. Response-focused advice might be to cut down on your credit card size, use only cash, or keep your spending in check.
This is great advice, but as Richards notes, “There is a third way to handle both.” Focusing on the gap between the stimulus and your response can be more effective. This space contains your power to choose your answer. Richards expands on this idea in a recent post in the New York Times :
In his book Man in Search of Meaning , Frankl, an Austrian neurologist and psychiatrist, also seems to have given us this understanding: “There is a space between stimulus and response. In this space, our power is to choose our answer. “
Wow! This little dance has a third element with stimulus and response. To break this frustrating spending cycle, we can focus on creating space between the two.
One practical way to do this is to sit down and wait before making a purchase. Yes, this is incredibly simple advice, no problem. The fact is that such advice, which is aimed at expanding this “space”, may be the most effective.
When it comes to managing your money, a sense of control is absolutely essential . This tip is about control. Instead of punishing yourself or removing the incentive entirely, it forces you to cope with your behavior and make better, more inspiring financial choices.
Richards has a lot of additional information on this topic and you can watch his video above or read his Times article below.
One Secret To Cutting Costs: Wait 72 Hours Before Buying | New York Times