How to Spend Money Wisely With 6 Effective Hacks
Share this content :
Whenever you decide to shop for something, do you feel strange or upset? Are there times when you buy something that feels right, only to end up feeling guilty? Surprisingly, lots of people have felt buyer’s remorse. PRNews once reported that over 74% of customers end up regretting their online purchases. Some said they realized too late that the product wasn’t useful. Others lamented the fact that the quality wasn’t good and that they spent too much on it.
If you have ever felt guilty about your purchase, even if it’s useful, then you might find it hard to trust your spending choices. The last thing you want to do is feel indecisive or uncertain about what you pay for. To learn more about spending guilt and how to spend money wisely, here’s what you need to know!
Why do I feel guilty about spending money?
There are a lot of ways that you might feel guilty about spending money. People have given out all kinds of financial advice over the years, both in person and on the Internet. Some of these tips can be valid and practical, while others are just pretentious or unrealistic. In any case, all these messages can give you mixed signals about how you spend your money.
Because of this confusion, you might constantly worry that you’re not using your money right. Sometimes, you might feel that what you buy isn’t worthwhile or necessary. Other times, you might regret not buying or taking an offer when the chance comes. If you want to know how to spend money wisely, you must know why you sometimes feel financial guilt. Here are three possible reasons why you start to regret your expenses.
You don’t spend for yourself.
Have you ever tried to “keep up with the Joneses”? Do you buy things that feel like the coolest trend or the “It” thing among your friends? If so, you might suffer from the Fear Of Missing Out (FOMO).
For those who don’t know, the idea of FOMO existed back in 1996, coined by Dr. Dan Herman, who was a marketing strategist. However, it became much more popular and researched once social media grew in use and size. Nowadays, FOMO is about the deep-rooted fears of being left out or unable to fit in a group.
When it comes to spending, you might be buying things only to make yourself part of your friends’ group or to fit in with other peers. If someone buys a selfie stick, you might join in on the trend. However, remember that this type of spending isn’t healthy. Learning how to spend money wisely means knowing what fits your goals. So, if you’re buying something you don’t like just to fit in, you’re doing yourself a huge disservice.
You realize that your expenses hurt your goals.
If you have your sights set on buying a house or owning a car, then you have an idea of how much you should save. Financial goals are part of everyone’s life and you most likely have one of your own.
The problem is that your spending habits could be holding you back. If you’re an impulsive buyer or a frequent spender, then you might be hampering yourself. While buying coffee once in a while isn’t bad, imagine buying a latte or macchiato every time you step out. That kind of expense builds up and can eat away precious dollars you could’ve used for your goals.
Because of this conflict of interest, you might feel guilty about how you spend. Sure, it feels good at that moment. However, you’ll eventually start to think twice about those choices. Perhaps you’re not happy with how you’re using your money now. Remember that the key to making your financial goals come true is knowing how to spend money wisely. Sooner or later, you’ll have to choose between your impulsive choice and your long-term choice.
You might have bad experiences with spending money.
Lastly, you might have some bad memories or emotions tied to the idea of spending money. For example, you might’ve grown up in a poor neighborhood. Your parents might’ve struggled to make ends meet, which made money management hard. Alternatively, you could’ve suffered a bad loss in profits or gone through some heavy debts.
In any of these situations, it’s the loss or lack of money that makes you wary and nervous. Because of those circumstances, you might not be happy about using your money at all. As someone who grew up in the projects, I know that feeling is hard to shake. Plus, after seeing my mother work so hard to save enough cash to buy us a house, I know that being disciplined with your money is crucial.
However, you also have to understand that not all purchases are bad. Spending on yourself or celebrating once in a while is okay. The key is to temper your habits, though. Not every single financial choice will cause you to lose your cash. That said, you need to know when to celebrate and when to hold back. Too much fun and joy will put your money at risk. Not enough fun or joy will make your money feel like a chore, instead of a tool. Just remember that balance is important in all your financial choices. Learn to live a little and save a little. Do that, and you’ll find yourself living a financially successful and fulfilling life.
How can I stop feeling guilty about spending money?
Once you understand the reasons why you feel guilty about spending money, you can start to move forward. You have to look into your life and see what could be holding you back. Is it the need to fit in? Is it impulsive spending? Is it your prior experience with money?
Now that you understand which factors are hurting you, it’s time to learn how to spend money wisely. Firstly, you have to find ways to stop feeling so guilty about your spending choices. Here are some ways you can start to curb all that regret and remorse.
Don’t wait for conditions to be perfect for getting started. Trust that you have everything that you need to get going on the task. You will discover any additional resources that you need once you get started.
Always spend with a purpose.
A lot of times, impulsive spending or FOMO purchases are done to satisfy something you feel. You might want to deal with your cravings or feel like you fit in. However, those aren’t meaningful purchases. Paying for them will only feel good for a short while.
If you want to make your purchases satisfying, make sure that you give each one a purpose. Use your money as a tool to get something that makes your life better in the long run. By giving yourself a purpose or a specific goal to aim for, you can start to say no to the things you feel like buying at that moment. Doing so will help you control your spending. More importantly, once you do make a purchase, it’ll be on something that matters.
For example, buying a delicious meal is a nice treat for yourself. However, you don’t need to eat at a restaurant or a fast food place every day. That kind of life is costly and tiring. Instead, consider focusing on buying groceries and learning to cook for yourself. It might seem like a lot of work but it’ll save you more money in the long run. Plus, it’ll teach you how to make good food that satisfies and energizes your day.
Think first, spend after.
Impulse purchases always ride the flow of your emotions. It all centers on what you want and what feels good. However, as said before, impulse purchases only last a short while. It can cause more problems than you’d expect in the long-term future. For instance, buying and snacking on candy might sound nice at the moment. However, if you keep doing that for several years, you’ll eventually suffer health problems.
Before you go and make your purchase, do yourself a favor and think about it first. Spend a few minutes contemplating whether or not it is worth it. You’d be surprised how useful this can be, especially when you do it for every impulse. Once you start to look at the pros and cons, you’ll soon learn to hold back and stop listening to your cravings. The sooner you learn this, the faster you’ll learn how to spend money wisely.
Accept compromise.
Impulse purchases always ride the flow of your emotions. It all centers on what you want and what feels good. However, as said before, impulse purchases only last a short while. It can cause more problems than you’d expect in the long-term future. For instance, buying and snacking on candy might sound nice at the moment. However, if you keep doing that for several years, you’ll eventually suffer health problems.
In other words, there will be times when you have to compromise. This is true for everything in life, especially money. You may encounter a moment when you have to spend more than you planned. You can always prepare ahead with a backup budget or an emergency fund to cover whatever you need.
That said, the important thing to remember is that compromise is okay. If you can’t find something good at a low cost, look for a fair price instead. Nothing worthwhile comes easy, right? Still, it’s better to buy something valuable at the right time than to wait and see.
What hacks can I use to spend money wisely and guilt-free?
At this point, you might understand how to spend money wisely with the right attitude and ideas. However, you may find it hard to keep that attitude. Sometimes, you might fall into the spending trap without realizing it. Thankfully, some useful hacks teach you how to spend money wisely. Here are six hacks you can use to improve your spending habits today!
1. Avoid discount traps and other marketing tactics.
If you struggle to protect your money while shopping, don’t be so disheartened. Advertising and marketing are meant to get you to spend on a product. Those hired to do so study for ways to make sure you feel compelled to part with your cash. While that isn’t wrong or unfair, it can make your spending habits hard to control.
One common tactic that these people use to capture your interest is a sale. They might hang up signs about a special deal or a limited-time discount. For instance, you might pass by a clothing store and notice that there’s a buy one, take one offer. Seeing that, you would probably get curious and start browsing to see if it’s worth the trouble.
Remember to steel yourself against these tactics when the time comes. Knowing ahead that companies are trying to get you to buy can help you learn to say no. It’s easier to resist an offer when you know what they’re doing. It’s not wrong that they’re marketing a product, but your response matters. So, if you want to resist, learn to turn the other way or shake your head.
2. Use cash.
Cards have become one of the most convenient ways to make a purchase. One swipe or scan and POOF! You’ve just gotten that nice phone or laptop paid for. However, its instantaneous use is both its biggest strength and weakness. Because it’s so easy to spend with a card, a lot of people end up buying a lot of things. CNBC once reported that 46% of Americans have accrued credit card debt every month.
One easy way to learn how to spend money wisely is by switching to cash-only payments. It might seem cumbersome and old-fashioned, but it has one advantage: you see how much money goes away. Swiping a card can seem quick and easy. Giving away $200 in bills? Now that hits you.
By using cash, you have that visceral feeling of handing your money away. You can see it and you can touch the money that you spend. With all these senses in play, you’ll have a better and more vivid picture of your expenses. Through this method, you’ll think twice about what you spend on and if it’s worth it. If you do have to make big purchases, like mortgages or utility bills, then you can use your card. Otherwise, try sticking to cash for what you buy.
3. Make a shopping list.
The biggest problem with buying anything, from groceries to clothing, is when you don’t have a list or plan in mind. Even with the advent of online shopping, many people still prefer to go to the store with a list. It makes it easier to control your spending and avoid indulging yourself. It’s so effective that 69% of female shoppers and 52% of male shoppers still bring a written list.
Follow their example and write down a shopping list to help you control your spending. Knowing what you need ahead of time will keep you from buying random items. With a list, you can plan your total expenses and your budget. Plus, it’ll show you how to spend money wisely once you start to follow the list accordingly. Aside from a written list, you can also use special apps and budgeting trackers to help you control what you buy.
4. Browse before you buy.
Follow their example and write down a shopping list to help you control your spending. Knowing what you need ahead of time will keep you from buying random items. With a list, you can plan your total expenses and your budget. Plus, it’ll show you how to spend money wisely once you start to follow the list accordingly. Aside from a written list, you can also use special apps and budgeting trackers to help you control what you buy.
However, you can learn how to spend money wisely when you start browsing further. Yes, it’s tempting to just buy the item you find right away. However, never assume that the price is always right. There will be times when you buy an item in one store, only to find that it’s cheaper in another store. Save yourself the hassle by comparing both the price and quality of each item.
Don’t limit yourself to physical stores, either. Sometimes, you can get a worthwhile deal by browsing Amazon and other online platforms. If you want to make it easier, start writing down the prices you see and make a comparative list of what you find. Eventually, you’ll discover which options are worth their cost and quality. You can also download apps to automatically compare prices and see which ones stand out the most.
5. Divide your money.
One of the biggest mistakes you can make with a budget is to stick it all in one place. For example, your weekly salary might be around $900-$1000. Ideally, that sounds like a good amount for everything in your life. So, you might use all that cash to cover your groceries, living expenses, and other costs.
However, that kind of mentality could encourage you to live on a paycheck-to-paycheck basis. Do you need to use ALL of your money? Even if you save some, that attitude will leave you lacking limits on your spending. You might spend 50% of that on your groceries alone, especially if you indulge yourself.
Do yourself a favor by dividing your money into separate categories. For instance, you can follow the 50/30/20 rule. 50% of your salary goes only to your needs, like food and rent. 30% goes to your wants, like your nights out or your restaurant meals. The remaining 20% can go to your savings. This way, you set a limit on how much you spend on all your things. Plus, that 20% can be used to fulfill your long-term financial goals, like buying a house.
6. Be honest with yourself.
Lastly, if you want to know how to spend money wisely, make it a point to examine your spending habits every so often. You might be doing well in your mind, but your expenses might say otherwise. It’s better to review your financial plan and expenses every week or month.
Why do this? Reviewing your financial plan is a good way of tracking how well you manage to control your costs. You might notice that you start saving more as the weeks go by. Alternatively, you might discover that you still spend a few dollars above the ideal. By reviewing your progress, you can learn to adjust or adapt your methods to make things easier.
For example, you might not feel that the 50/30/20 method fits your lifestyle. Perhaps you aren’t fully prepared to save 20% of your savings right away. In that case, you can adjust your plan to something like 50/40/10. Saving just a fraction of your income is a good start to building your finances. Plus, it can help you develop the habit as time goes on. Eventually, you might feel more confident to start saving 20% of your income in the future. Everyone has to start somewhere, right? So, by reviewing your progress, you can quickly adapt and change your plan to make it more practical and meaningful.
Takeaways:
- Feeling guilty about spending money is common, and there are several reasons for it:
- FOMO: The fear of missing out can cause you to buy things just to fit in with others.
- Your spending habits: How you routinely spend your money can hinder your financial goals.
- Past bad experiences with money: Your memories with cash or lack thereof can also make you feel guilty about spending.
- To stop feeling guilty, spend with a purpose and give each purchase a specific goal.
- Before making a purchase, take a moment to think if it’s worth it.
- Remember that accepting compromise is okay, especially when it comes to unexpected expenses.
- Learning how to spend money wisely is key to living a fulfilling and financially successful life. Here are six hacks to spend money wisely and guilt-free:
- Avoid discount traps and other marketing tactics by being aware of their tactics and learning to say no.
- Use cash for purchases to have a more visceral feeling of handing your money away and to see and touch the money you spend.
- Make a shopping list to help you control your spending and plan ahead your total expenses and budget.
- Browse before you buy by comparing prices and quality of items in physical stores and online platforms.
- Divide your money into separate categories, such as the 50/30/20 rule, to set a limit on how much you spend and to save for long-term financial goals.
- Be honest with yourself by reviewing your financial plan and expenses regularly to track progress and adjust your methods accordingly.
Thank you very much for reading this article! If you found this article helpful, please don’t hesitate to share this article with your family and friends. If you want to learn more about becoming a millennial millionaire, get a copy of my FREE book here! I will share real-world steps and techniques you can use to grow your finances.
- Ali, M. (2022, August 13). How To Spend Money Without Feeling Guilty. YouTube.
- Dahlby, D. (2022, June 6). How Purposeful Spending Can Be Guilt Free. Yahoo! Finance.
- Daly, L. (2022, November 15). Feeling Guilty About Spending Money? Try This Tip From Ramit Sethi. The Motley Fool.
- Dickler, J. (2023, January 10). Americans lean more on credit cards as expenses stay high: 46% of cardholders now carry debt from month to month. CNBC.
- Diehl, E. (2022, August 5). Why Do We Feel Guilty Spending Money? SoFi.
- Khurana, A. (2022, December 29). Average Salary USA In 2023: Ultimate Guide On Annual Salaries In America. Leap Scholar.
- Lake, R. (2020, July 2). Grocery Shopping Statistics: 23 Fun Size Facts to Know. CreditDonkey.
- Scott, E., PhD. (2022, November 16). How to Deal With FOMO in Your Life. Verywell Mind.
- The Twenty Percent. (2022, October 14). How to spend guilt free.
Share this content :
Being successful as a person can both be learned and taught, but you must have the willingness to overcome obstacles and create habits that will make you more successful . I will give you the systems that will do both.
Copyright © 2023 Munif Ali. All rights reserved.
