Has your spending been a little out of control lately?
Maybe you went on a shopping spree to get the latest fashion now that the seasons are changing.
Or maybe you decided to treat yourself and went a little overboard.
Or maybe you just have an ongoing spending issue, and you finally want to kick it to the curb.
The one strategy that immediately limits spending, that you can use as soon as right this moment!, is to…wait it out.
Yep, that’s right. It’s that simple. But don’t leave – there’s a few techniques you need to know to make this simple strategy work effectively.
The One Strategy That Immediately Limits Spending
So let’s talk about this in a bit more detail. This strategy sounds simple in theory, but I’m pretty sure we all know that most personal finance strategies are the opposite. They appear simple on paper, but following through with them is hard. Otherwise, this whole money management thing wouldn’t be difficult to work out!
Let’s go back to the fact that you have a spending issue you’d like to solve. Perhaps you’ve already tried a shopping ban, and it didn’t work. Maybe you even tried taking a different route to work so you could avoid a certain store or coffee shop. How is this going to help you?
Well, you’re not exactly outright telling yourself you absolutely cannot have this one thing. Ever. You’re simply sleeping on it. You’re giving yourself permission to walk away from what’s probably an impulse purchase, and taking time to think it over.
That right there is the point of the entire exercise. You’re creating a gap between wanting to purchase something, and actually (possibly) purchasing it.
You’re not going from “Oooh I want this!” to checkout. You’re going from “Oooh I want this!” to, “Well, maybe I should think about it some more, in case I don’t need it.”
You’re distancing yourself from the transaction, which is a good shopping habit to have.
How Long Do I Have to Wait? What’s the Point?
How long you have to wait is completely up to you, but at the very least, I’d recommend sleeping on it. Aim for a 24 to 48 hour window.
Besides creating a gap between the point of wanting to buy something and the literal point of sale, you want to give yourself time to process it.
Process what? you might be thinking. Well, there’s a lot going on in the background when we decide to make a purchase. A lot that you may not realize, especially if you’re an impulse shopper.
First off, what is the real reason behind your purchase? Maybe on the surface, you think a certain clothing item is nice, and will help you dress better, and therefore, look better. So it’s a confidence booster.
Maybe you want to buy some workout gear you happened to pass by in Target because you’re tired of feeling unhealthy, and exercising is one of those New Year’s Resolutions you never get to.
Whatever the case may be, rarely do we buy anything without an underlying motive (you can easily go deeper with those examples). And most of the time, we don’t process all of that in a store (or while shopping online).
We don’t give ourselves the time or space to do it, and most people aren’t finance nerds that think this deeply about it. ;) That’s why the waiting period is so important.
So…What Does “Processing” Look Like?
More often than not, you’re going to realize you didn’t want the item you were going to buy. Or at least, not as much as you thought you did when it was in your hand, or within your sight.
After the 24 or 48 period has passed, ask yourself if you’ve thought about the item. How frequently? If it was once or twice in passing, and closer to the start of the waiting period, you shouldn’t buy it.
However, if you actually thought it through, and couldn’t get it off your mind, and the item will add value to your life in some way (that’s key), then give yourself permission to spend.
Do it wisely, though – if you don’t have the cash to pay for it, then save up for it.
More waiting? Yep. Consumer debt is never a good thing. We’re still working on forming good spending habits, remember?
How Often Should You Delay Spending?
Now that you get how the process works, how often should you use this technique?
It probably sounds crazy, but I use it all the time. I’m a very conscious shopper, to the point where it took me two years to buy a laptop I finally reasoned I needed for work if I was going to travel while freelancing. (Oh, and I had the savings for it, too.)
You don’t need to go overboard like me. I wouldn’t recommend it, unless you have a huge shopping issue you need to address.
What you can do is set a limit for yourself. Maybe you can’t buy things on the spot that cost over $30, $50, or $100. But for things that are less, you give yourself a bit of leeway.
You have to know yourself here. If you give yourself a break on $10 items, will you be tempted to buy several $10 items in one transaction? Will it end up being a snowball, to the point where you say, “Oh well, I already spent $X, might as well spend more!”? Then figure out another way to implement this strategy.
What if it’s Not Feasible?
The other night while I was recording a podcast, Kayla, blogger at shoeaholicnomore.com, brought up the fact it’s difficult for her to use this strategy because she happens to live in the middle of nowhere, Kansas. She’s several hours away from major shopping outlets.
In her case, she can’t really go home and wait. That’s not exactly convenient, and I get it. The same goes for online shopping. It’s kind of hard to tear yourself away from the screen when we’re all so connected these days.
My best tip is to plan strategically if you live far away. Here’s how I see it: if you’re traveling that far in the first place, you’re probably going shopping for a reason. If there’s no reason other than “it’s routine” or “I’m bored,” then you know you have a problem.
Only go if you absolutely need something and have saved/planned for it. That means having the funds in a separate account, or having planned for the purchase within your budget.
You’re essentially taking the opposite approach and thinking about the purchase before it happens. You also must be committed to only buying what you planned to. Nothing outside of that should make it into your cart.
As for shopping online, try blocking those sites from your computer. You can easily walk away or hit the “X” button on your browser or app, too. Just because you have constant access doesn’t mean you can’t use this strategy.
One last tip: don’t shop alone if you can’t trust yourself. Bring a friend along to hold you accountable!
What Are the Other Benefits?
Believe it or not, delaying your purchases has additional benefits. It not only saves you money in the long run by making you a conscious shopper, but it also makes you think about the things you already own.
In a sense, delayed gratification leads to gratitude. Hopefully you’ll realize that you don’t need whatever you wanted to buy because you either have something similar, or can do without it because your life is fulfilling in other ways.
Plus, becoming a conscious shopper means critically evaluating your purchases and spending in line with your values. That’s putting your money to work for you in a way that will make you happy, which shouldn’t lead to buyer’s remorse.
Overall, it’s worth the wait to delay your purchases. You’ll start saving more money, you’ll begin questioning your purchases and get clear on your values, and you’ll learn to appreciate what you have much more.
Have you ever used this strategy before? Did it work? Why or why not? What are other strategies people can use to stop spending immediately?
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I always wait it out! It definitely works. That and never having a credit card!! :) Keeps my spending propensity right in check!
Oh yes – leaving the house without a credit card, or minimal amount of cash (at least, to the point where you won’t get stranded anywhere) can definitely help as well!
“Wait one or two day to determine if you really want to buy that” my mother would often say when I wanted to spend the money that was burning a hole in my pocket. No doubt that often time can change your perspective on the importance – or lack of importance – regarding a product or service.
Wise words! I think this is actually a great strategy parents can teach their kids, and a few of my friends have said they’ve done this. It’s super valuable to learn at a young age.
I think it’s smart to delay spending, especially on larger purchases. Sometimes I delay things so long I forget about the purchase altogether. Ha!
I definitely do that, too! Most of the time I keep a little wish list on Amazon for things I’d like to have, but don’t want to buy right now. Comes in handy for birthdays/holidays.
I employ this strategy a lot vs. doing something like frugal living. Strangely enough, many people confuse this for being frugal. Being conscious of your spending and waiting a while to purchase something is not the the same as being frugal.
It’s about being conscious of where your money goes and seeing if the purchase will really benefit you.
I agree, Colin! It’s not exactly a frugal practice, it’s just being cognizant of where you want your money to go, as you said. It’s practical, if anything. I always want my money to work for me in a way that will benefit me the most. Sometimes that naturally leads to frugal decisions, other times, it’s simply what’s best for me.
I used this strategy when I was considering buying a tablet and it definitely worked. I love the idea of having a tablet but every time I find one I want I wait a couple days before allowing myself to make the purchase. During those couple of days I typically talk myself out of it, saving me hundreds of dollars.
I’m glad it worked for you! For bigger ticket items that I’m still going back and forth on, I usually break out a pros and cons list to organize all my thoughts on it. Then I wait, and go back to it with a clear mind. It really helps!
We still use this strategy a lot ourselves. We’ve found over the years that unless it’s something we absolutely need then we can likely delay the decision for several days, or more, in many circumstances and see if it’s something we can really get value/return out of and that it’s worth the expense. While it was a challenge at first, it’s very freeing to know that we’re in control and only bring things into our lives that create value. Love the redesign btw, very cool!
Waiting to make a purchase is sooo helpful! Sometimes while waiting to buy something we’ve found a much less expensive way to meet the same need or even get the same exact item. More than once I’ve thought about purchasing some type of clothing, only to receive a similar hand-me-down item for free! This type of thing has happened enough that I’ve learned that it’s good to wait.
Nice, I’m glad you’ve used it before and found success with it! Waiting can be hard sometimes, but often, once you pass the initial 12 hours, you’re fine (unless you decide you want it).
Yes, the site looks awesome! A lot of work was put into it, so I’m sure DC appreciates the comment. =)
Thanks so much Jaime! Erin shouldn’t be so humble, though – she gave me her opinions and thoughts along the way and really helped make it a great design!
Wow, you waited 2 years to buy a laptop! I think we’re similar in that respect in that I always put off purchases and research it as well decide whether I need it or not. Sometimes the impulse goes away and I decide I don’t really want or need it. DC is similar too I think cause he’s been “processing” the tablet purchase for I don’t know how long now =)
I’ve been trying to implement a shopping ban on clothes this year. It has proven more successful than I thought! So many times I buy something on impulse because it’s on sale, or I could use it but don’t need it. Thanks for the great tips!
We have a predetermined price limit where we will not purchase an item that costs that much unless we wait 24-hrs. Anything under that amount and we don’t have to wait (although sometimes we still do). There is so much emotion involved in purchasing. Waiting helps reduce that excitement so we can make better decisions.
Great points. Often, just thinking about a purchase a bit longer, makes the impulse go away. Odds are, you likely do not need it anyway. Of course, if it’s crack or heroin, maybe you do need it right away…:-(
My husband and I each have monthly “allowances” for things like this, so I have a little extra money when I decide I really want that extra cute little doo-dad at Target. Anything over this amount we wait and research, but it works great for us for little things to just have it in the budget.
I’ve used the wait technique for lots of other things, and it’s super great advice!