People spend around $151 monthly on impulse purchases—up to over $1,800 a year.1 By the very nature of an “impulse purchase,” it’s spontaneous and designed to provide immediate, short-term satisfaction. And while you likely can’t avoid ever making another impulse purchase again, doing so regularly could eventually impact your ability to achieve your bigger financial goals.
Instead, we encourage you to embrace mindful spending. Doing so can better ensure that every dollar spent reflects your unique values and life goals while helping you avoid the temptation of making purchases that you may soon forget anyway.
Below we’re exploring how mindful spending can transform your financial health and, ultimately, lead to greater satisfaction and alignment with your personal values.
What Is Mindful Spending?
Mindful spending is a relatively simple concept. It’s the practice of being conscious and intentional about where and how you spend your money. You may find it helpful to think of mindful spending as the antithesis of unconscious spending, which includes habits like impulse buying.
People make impulsive purchases for a few key reasons:
- They’re looking for instant gratification.
- They’re spending based on their emotions (excited, joyful, sad, lonely, etc.)
- They don’t want to experience FOMO (fear of missing out)
- They’re succumbing to pressures around them (“Everyone else has this, I should too”)
- They resonate with the marketing or advertising
It’s important to note that none of the reasons above relate to the individual’s long-term goals or overall financial wellness. Instead, they’re emotionally driven decisions based on outside pressures or a desire to feel a certain way.
On the other hand, mindful spending is a crucial part of financial planning, as it helps you align your expenditures with your long-term goals and personal values.
The Benefits of Mindful Spending
Perhaps the most immediate and forward-facing benefit of mindful spending is the impact it can have on your budget. When you cut down on impulse spending, you reduce unnecessary expenses and can direct more of your discretionary income toward your savings goals.
Aside from the financial benefits, mindful spending can also help improve your emotional well-being. While impulse spending is an emotionally driven act, the immediate gratification is short-lived—and often followed by feelings of regret or anger.
When you make thoughtful purchases that align with your values or goals, you eliminate harsh emotional fluctuations and feelings of guilt. Ultimately, mindful spending can reduce stress and improve your long-term satisfaction with a purchase.
How to Practice Mindful Spending
Start by identifying your core values and what’s truly important to you. Think about what brings you the most joy, what legacy you’d like to leave behind, and what causes you to keep close to your heart.
Moving forward, face your spending habits head-on by tracking every expense. You can do this using a budgeting app or spending journal, whichever you prefer. You’ll need to be able to go back through and review your spending, identify patterns, and see if there are specific correlations between what’s going on in your life and your spending. For example, some people make more impulsive purchases around payday or on the weekends.
As you review your recent purchases, reflect on them. Did they bring you joy? Do they align with your values? If so, take a moment to give yourself credit for a job well done. If not, consider why you made the purchase and if you would make a different decision.
Set Intentional Goals
Rather than feel constrained by limited spending, think of it as setting intentional spending goals instead. Perhaps you can support local businesses instead of shopping for clothes at a big box store. Or, invest in experiences like travel or date nights over material goods that may not bring you that same kind of lasting joy.
Pause Before Purchasing
Mindful spending is excellent in theory, but it can be more challenging to implement than some people realize. If you continually struggle with making impulsive purchases, try making yourself a rule where anything over a certain dollar amount (say $50) must wait. You’ll leave the purchase, give it a few days, and decide if it’s worth it.
If you still believe it’s a good, worthwhile decision after a few days, you can complete the purchase. But you’re probably better off without it if you forget about it.
Practicing Mindful Spending? We Can Help
It only takes a bit of thoughtful, proactive thinking to cut down on your impulsive purchases—but over time, this commitment to mindful spending can help save you thousands. Not to mention, it’s an effective way to regulate your emotions around money and maintain a long-term focus on your financial goals.
Take some time to review your current spending habits, identify your values and goals, and find opportunities to make intentional changes today. If you’d like to discuss mindful spending with a professional, we encourage you to reach out to our team anytime.
