Managing personal finances can sometimes feel like a balancing act. We all have unique spending habits, and understanding what triggers us to indulge in those habits is an essential step towards achieving improved financial wellbeing.
Let’s explore what some of the most common spending triggers are, and how you can identify and manage them effectively.
Understanding spending triggers
For the most part, spending triggers will fall into one of three categories, though there may be an overlap. A spending trigger will either be social, emotional, or activated by marketing tactics. When we say they can overlap, you may be falling into a social trigger, that’s caused by seeing the right ad at the right time.
Before we dive into how to manage your spending, let’s discuss what these triggers mean.
Social influences
Human beings are social creatures, and a lot of our actions can be influenced by those around us, even subconsciously. Our spending habits are no exception. Whether it’s the pressure to keep up with latest trends, or simply a fear of missing out on the next big thing, social triggers can often prompt impulse buys.
Emotional triggers
Emotions play a significant role in our decision-making, and this includes our spending habits. Emotional triggers can include stress and boredom, but also excitement and celebration. Consider the last time you bought something as a way to reward yourself, or even as a way to combat feeling low, bored, or stressed. Can you identify what it was? Do you still use it today?
Advertising and marketing triggers
It’s almost impossible to escape ads these days, and the world of advertising thrives on making us want things that we don’t really need. These ads are designed specifically to influence our spending behaviours, and while we can’t avoid them, there are strategies we can adopt to counter their impact.
Tips and tricks for managing spending triggers
Remember that we are all unique, and what works for one person may not work for you. If you find that one technique isn’t quite hitting the mark, try another. Keep trying until you find a strategy that is sustainable and works for your individual situation.
1. Mindful spending and delayed gratification
Take a moment to pause and reflect before making a purchase. Ask yourself if what you’re buying aligns with your personal values and financial goals. If it doesn’t, or you’re in doubt, wait a day. If, by the end of the next day, you’re still uncertain, perhaps it’s not the right time or fit.
2. Set realistic budgets
We all know that budgeting is key to financial success but it’s important that you set a budget that accommodates your lifestyle. It’s no use cutting out everything that brings you joy, but it is important to keep your long-term financial goals in mind. Balance is important, and we always recommend putting aside a bit of money for “nice-to-haves” and fun nights out.
3. Seek alternative social activities
If you know you struggle with managing your spending if you’re out and about, then why not explore some alternative, low-cost or free social activities? These can also bring you joy and fulfilment, especially when shared with friends and family. This means you can enjoy your time out without focusing solely on your spending.
4. Find healthier coping mechanisms
Try to find different outlets for your stress and negative emotions, ideally ones that don’t involve you spending money. This could be exercise, a hobby, or spending time with loved ones. You may find that this emotional fulfilment is enough to keep your mind occupied.
5. Understand marketing tactics
Take a bit of time to read up about some common marketing strategies and techniques as you’ll find it easier to recognise when companies are appealing to your emotions (or creating a sense of urgency) to encourage purchases. This could include marked down prices, flash sales, and even customer testimonials.
6. Compare your cart
It’s always best to go into any purchase with comparison in mind. In other words, don’t settle for the first option. Take some time to research alternatives, compare prices, and, most importantly, read reviews. While a bit more time consuming, this approach makes it much easier to make an informed decision when buying something new, which in turn could save you some money.
Understanding your spending habits and triggers
Identifying and managing your spending triggers is an important step towards achieving financial stability. Recognising when you may be spending for emotional reasons could make it easier to take a step back and make a more conscious choice - one that aligns with your financial goals.
Remember, it’s not about avoiding all the spending triggers, but rather about developing a mindful approach to your finances. Find a few techniques that work for you and stick with them!
Check out our article about helpful budgeting tools to get you started on your financial wellbeing journey.
Important information
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