Are you struggling with not being able to control your spending? Just know that you’re not alone, and it’s a challenge that can be overcome.
Breaking free from the cycle of excessive spending involves understanding triggers, setting financial goals, and resisting temptations. Utilizing practical budgeting techniques, such as identifying income and expenses, using financial tools and resources, and seeking professional help if needed, can help lead to healthier spending habits and better financial control.
That said, be sure to give yourself some grace and permission to spend some money even if finances are tight and you have some aggressive financial goals. If you can’t stop spending money but also don’t want to feel deprived, here are some practical tips to help you regain control.
Understanding the Problem
Overspending may be the symptom, but it’s often not the root cause. Chronic overspending can be a significant issue, often rooted in emotional or psychological triggers. By understanding the root causes of why we overspend, we can start taking steps to control our habits.
Emotional Spending Triggers
- Many people resort to ‘retail therapy’ when stressed, anxious, or unhappy. Emotional spending can provide a temporary high but often leads to financial and emotional stress later.
- For others, spending is a form of celebration or reward. While celebrating achievements is essential, doing so through extravagant spending can lead to problems.
Psychological Spending Triggers
- The desire to ‘keep up’ with peers or societal expectations can encourage overspending. Social media and societal pressures often entice people to spend beyond their means. This is why it’s important to remind yourself that social media is not real life and you’re only seeing a small glimpse of someone’s situation.
- Impulse buying is another common problem. As shoppers, we’re surrounded by marketing tactics designed to make us spend more, such as limited-time offers or ‘sale’ signs.
Effectively managing your money starts with understanding why you’re spending in the first place. This is such an important step so be sure to spend lots of time reflecting. Once you identify your spending triggers, you can begin to take control of your financial habits.
What To Do When You Can’t Stop Spending Money
Change starts with awareness and a willingness to take action and make changes. So, if you landed on this post and have made it this far, you’re doing an excellent job. You’ve realized that you’re probably stuck in a cycle of overspending and want to do something to fix it.
Here are a few things you can start doing now.
1. Set Financial Goals That Get You Excited
One way of curbing excessive spending is to have a clear vision of what you want to achieve financially. This could be:
- Saving up for a down payment for a home
- Building an emergency fund
- Paying off a credit card or a student loan
These goals will give you a sense of purpose and incentivize you to cut back on wasteful spending. Setting goals you’re excited or passionate about is also going to help motivate you to limit wasteful spending. Since unnecessary purchases will just take you further from where you want to be.
Related: 10 Easy Financial Goals You Can Meet This Month
2. Budget For Needs and Wants
Don’t just create a budget for your needs such as housing, utility bills, transportation, and food. This is important but it doesn’t leave room for realistic expenses such as dining out, an online purchase, or a fun hobby.
Many people believe the myth that budgeting will just limit their finances and what they can spend. On the contrary, using a realistic budget will help you regain control of your finances and plan how to use each dollar you earn.
Be intentional about budgeting for wants as well as needs allowing yourself some wiggle room to spend on something fun. From there, you can still:
- Track your spending
- Evaluating your spending habits at the end of the month
- Find creative ways to save and pay yourself first
I love paying myself first because it allows me to save, invest, and put money toward debt as soon as I get paid. Then, I can budget with the remainder of my income. When I do spend money on certain wants, I don’t feel guilty or like I’m going to overspend.
Related: Budgeting With a Low Income, Yes It’s Possible
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3. Avoid Temptations
Another strategy if you feel you can’t stop spending money is to avoid temptations that could lead to impulsive buying. This may include:
- Unsubscribing from marketing emails from your favorite stores
- Avoiding scrolling on e-commerce sites during your free time
- Doing other activities such as reading a book instead of shopping as a passtime
It’s important to find ways to enjoy your time without the need to spend money constantly. Earlier this year I noticed I had a bad habit with making too many purchases on Amazon and buying too much home decor.
I began saving all my home decor items and putting them away in bins labeled by the season. When fall rolled around, I told myself I wasn’t going to spend one dime on any additional seasonal decor because I kept everything from last season.
I still got to enjoy the thrill of decorating my home but I also felt peace of mind knowing I didn’t buy anything else.
With Amazon, I just went cold turkey and stopped making extra purchases outside of the household items I’d buy each month. Instead, I told myself to wait or go without the item for now and just make do. Not surprisingly, I survived and all was well. I learned to go without the stuff and had more money in my bank account to show for it.
4. Practice Mindful Spending
You may find yourself spending money often and not really even thinking about it. Maybe it’s become a habit but the good news is that habits can be changed and replaced. Instead of buying on an impulse, practice mindful spending. This encompasses:
- Asking yourself if you’re buying something because you ‘need’ it or because you ‘want’ it
- Waiting for 24-48 hours before making a significant purchase to eliminate impulse buys
- Evaluating the cost-per-use of an item – if you’re unlikely to use it often, it may not be worth the cost
The bottom line is to think carefully about your purchases. Get clear on the values and goals that you set. Ask yourself why you want to purchase something when you feel the need to spend. Just the other day, I was getting out of the gym and was pretty hungry. I thought to go pick up food but remembered I had leftovers in the fridge.
While the idea of picking up food from somewhere sounded great, I reminded myself that one of my values is to dine out as a social activity, whether it’s a date night with my husband or to chat with friends. Grabbing takeout for lunch just to bring it home and eat alone wasn’t really how I wanted to spend my money.
After denying the temptation and just driving home, I felt so much better and confident about my finances. This just goes to show that every idea that pops into your head isn’t a good one and you don’t need to follow through with it.
5. Have a No Spend Week
Maybe your spending habits are crippling your ability to meet your basic needs or pay bills on-time and it’s leading to a lot of stress. Sometimes, it’s best to commit to stop spending money altogether.
In a world where credit cards and buy-now-pay-later services reign supreme, it can seem like you’re going against the grain by having a no spend week. But don’t underestimate the power of pumping the brakes on your spending.
Start with a no spend weekend and challenge yourself to avoid spending unnecessary money. Then, expand it to a full week. You can still pay bills that are due, fill your car with gas as needed, and take care of other necessities. But avoid any other purchases.
No spend weeks will help you get creative and find ways to:
- Entertain yourself without spending any money
- Utilize food from the pantry and what you have on hand to make meals
- Fix things or learn how to go without instead of buying something new
Related: No Spend Week: The Best Way to Save Money, But Can You Do It?
6. Seek Professional Help
If you’re in a severe financial crisis due to excessive spending, seeking professional help might be beneficial. Professionals like Certified Financial Planners, credit counselors, or even psychologists specializing in financial management can provide advice and strategies to control your spending. The Consumer Financial Protection Bureau has some great legitimate resources on credit counselors who can help advise you.
Remember, controlling spending and managing money, in general, is a skill that anyone can learn. With the right tools, resources, and mindset, you can stop the habit of excessive spending and start your journey toward financial wellbeing.
Summary
There is a way out if you feel like you can’t stop spending money. Start by trying to identify the root cause including any emotional and psychological triggers. Then, focus on narrowing down one or two exciting goals that can keep you motivated. These can even by short-term goals like an upcoming weekend trip being the reason why you want to cut down on spending.
Take things step by step and remember that financial discipline isn’t build overnight. It requires consistent effort. If you’re ready to take control of your financial future, why not start by checking out list of 50+ things you can stop spending money on ASAP in order to save. They could be the first step toward a balanced financial life you’ve been striving for.
Frequently Asked Questions
Why do I spend money when I’m stressed?
This phenomenon is often termed as “retail therapy”. Buying something new is believed to provide a quick fix of dopamine, known for triggering feelings of pleasure and satisfaction. However, it’s important to acknowledge this habit and work on healthier coping mechanisms to deal with stress.
How to manage my money better?
Managing money better requires a combination of knowledge, discipline, and good habits. Prioritize creating a proper budget, setting financial goals, and regularly reviewing your spending habits. Don’t forget to build an emergency fund and consider all purchases carefully.
Is it too late to start budgeting?
It’s never too late to start budgeting! Whether you’re in your teens or reaching retirement, budgeting allows you to make the most of your income and savings. It gives you control over your finances and helps ensure long-term financial stability and independence. Learn how to create the simplest budget using the 50-30-20 budgeting method here.
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