Spending Every Time You Leave the House? 8 Ways To Prevent It
Written by
Angela Mae
Edited by
Carly Brashears
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The average American spends about $6,080 a month, according to the most recent Bureau of Labor Statistics data. This is a 9% increase from the previous year.
Unfortunately, many people struggle with the cost of living — something that hasn’t been helped by higher-than-usual inflation rates in recent years. And for those who have a tendency to spend money whenever they leave home, it’s even harder to deal with rising costs or avoid financial hardship.
With the start of the new year, now’s the time to make some changes to your spending habits. Even minor adjustments to how you budget or handle your finances could set you up for greater financial security in the future.
Not sure where to start? Here are some ways to prevent overspending or minimize the desire to spend money whenever you leave home, according to experts.
Set Limits and Make Lists
It’s easy to overspend when you don’t have a plan or when you’re using credit or debit cards to fund your purchases. If this sounds like something you do, this is one area where you can make a change.
The next time you’re about to leave the house, think about where you want to go and what you need to buy. Make a list of these places and items and stick with it. This can help prevent spontaneous or unnecessary spending.
While you’re at it, stick to cash and leave the credit and debit cards at home. This gives you a physical limit that can also minimize spending and impulse purchases.
“Allocate a specific amount of cash for the outing,” suggested Taylor Kovar, CFP, CEO at TheMoneyCouple.com and Kovar Wealth Management. “Once it’s spent, refrain from using credit or debit cards.”
Using cash has the added benefit of making you aware of how much you’re truly spending. Since it’s more tangible than credit or debit cards, getting into the habit of carrying cash around could limit your spending.
Get an Accountabilibuddy
Having someone to help keep you accountable with your finances can also help limit unnecessary spending.
“If you have a partner or a roommate, asking them for extra accountability may be helpful as well,” said Bri Conn, an investment advisor representative of Childfree Wealth and co-host of the Childfree Wealth Podcast. “I admittedly love the grocery store a bit too much and have gone even when I wasn’t planning on it. Sometimes, I ask my spouse to hold me accountable in purchasing so I’m not overspending and buying more than we can realistically use.”
Set Financial Goals
Setting a financial goal or two gives you a purpose for your money other than to spend it. This can cut down on unnecessary spending while potentially setting you up for future financial security.
“Set short-term financial goals,” said Josh Michaels, a financial advisor and the CEO and founder of Money4Loans. “Having specific, achievable goals can motivate you to save rather than spend.”
The key word here is “achievable.” If you create unrealistic or difficult goals, you might not be able to reach them. Or you might become stressed out, which could lead to dropping those goals and spending more money.
Try To Create a Waiting Period
Retailers know how to get shoppers to buy things, even things they don’t need. They’ll organize their stores in ways that encourage you to purchase extra items as you browse the aisles.
The problem with this is that it makes it harder to ignore the temptation to add things to your cart as you pass by. But even small things, like an extra bag of chips, can add up over time.
If you’re at the store and see something you kind of like or want, but it’s not on your list, don’t immediately put it in your cart. Instead, wait a while.
“Implement a waiting period for non-essential purchases,” said Kovar. “If you see something you want, wait a day or two before buying it. Often, the urge to buy will pass.”
And if you do still want it later, you can always purchase it then.
Create a Budget and Monitor Your Spending
A lot of people either don’t have a budget, or they don’t stick with it. But without a budget, you’re far more likely to spend money that you should have saved or used on something else. If you don’t have a budget, or yours is out-of-date, the start of the year is the perfect time to make one.
“As a CFA, I would advise individuals to create a realistic budget allocating income to essential needs, savings goals, and discretionary spending,” said Melissa Terry, the CFA at VEM Tooling.
As you create a budget, try to distinguish between your wants and needs. Prioritize things like groceries, housing costs, debt, and financial goals before allocating money toward things that can wait.
While you’re at it, start tracking your expenses. Do this for a few months or so and then review your spending habits to see which areas might need improvement.
Keep Receipts and Review Them Regularly
It’s common practice to say “no” to your receipts. After all, who wants to open their wallet or purse to find a dozen slips of paper cluttering their space?
But if you have a habit of spending money whenever you leave home, you might want to start collecting those receipts.
“Keep receipts or make notes in your phone about everything you spend money on,” suggested Kovar. Reviewing your receipts every couple of weeks or once a month can make you more conscious of your spending habits. It can also help you find ways to cut back, or figure out which stores you might want to avoid shopping at.
Delete Payment Apps
Payment apps are handy since all you need to do is open the app on your phone and scan. But this convenience can easily lead to spending money whenever you’re out.
That’s why Conn suggested deleting any payment apps from your phone. She also recommended removing apps that store your credit card information.
Identify Your Spending Triggers
People often spend money they probably should have kept in their bank account or wallet due to outside factors or triggers. If this sounds like you, you might need to delve deeper into the root of the problem before you can solve it.
“Identify what tempts you to spend unnecessarily,” said Kovar. “Is it a certain type of store, emotional state, or social situation? Avoid these triggers when possible or prepare strategies to deal with them.”
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