This post is from our regular contributor, Erin.
I think it’s safe to say that at some point or another, we’ve all had an issue with spending.
Whether it was a huge issue that landed us in a boatload of debt, or a small issue that happened on occasion, it can be hard to beat the temptation to spend.
One of the keys to good money management is being able to control your spending, which often involves identifying why you’re spending in the first place, and creating good spending habits in place of bad ones.
If you need help getting your spending under control, read on to find out what type of spender you are, and what solutions can help you the most.
What Kind of Spender Are You?
To figure out how to control your spending, you need to figure out what type of spender you are. If you’re not aware of your spending habits, you can’t fix them.
There are different types of spenders? You bet! Let’s take a look at some of the most common profiles:
The Impulse Spender
We all know this one. You go shopping, most likely without a list, and end up buying things you didn’t go to the store for. You just couldn’t resist. Whether you grabbed something at the checkout counter, or found a sale you just couldn’t pass up, you’re prone to buying on the spot.
The “I Don’t Care Where My Money Is Going” Spender
This is someone who doesn’t budget or track their spending. They carelessly throw items into their cart without considering the consequences. They don’t think twice about their shopping habits and probably aren’t aware they have a problem. At the end of the week, they have no money left, and wonder where it went.
The “I Deserve It” Spender
One of the deadlier excuses to buy into, this is someone who thinks they deserve all the nice things in the world. Had a bad day? Treat yourself. Got a promotion? Treat yourself. Think you’re awesome? Treat yourself. (Anyone else love that episode of Parks and Rec?) You can fall down the rabbit hole with this one very easily.
The “I’m Broke but I’ll Always Be Broke, So What Difference Does It Make?” Spender
I can’t stand this one because this is such a limiting mentality, but there are many people out there who’ve resigned themselves to living in debt for the rest of their lives. They don’t think their financial situation will change, so they continue with their bad shopping habits. This is close to the “don’t care” shopper, except they’re more aware.
I’m sure there are more spending profiles out there, but most people will fall under one of these. Each can be remedied with a different solution, so let’s take a look at what you can start doing today to gain control of your spending.
Stick to a Plan
I am a Type A personality through and through. I love making lists, and when I go shopping, it’s no different. (Besides, I’ll probably forget half the things I need without a list!)
Whenever I go out, I only allow myself to buy what’s on the list. It’s an easy way to restrict yourself, especially if you can’t pass up a sale, or if you can’t remember what you need and accidentally buy something you already have.
You can look through websites and circulars beforehand so you know what’s on sale and can add it to your list. Estimate how much everything is going to cost, and make sure that amount is in your spending plan.
Solution for: impulse spenders the most.
Limit Your Available Funds
Whenever you go out, only take a limited amount of cash with you – enough to cover what you need to get.
This one can be tricky, because you don’t want to find yourself in a rough spot if an emergency happens. Knowing your financial tendencies helps. If you think you can go out with limited cash and have your debit card as a backup (but not use it), go ahead.
It’s a worthwhile “trick” to try if you really need to stick to your budget. If you go to the grocery store with $100, you know that’s all you can spend. If you’re familiar with the envelope budgeting system, it’s similar.
Solution for: impulse spenders and “don’t care” spenders. Also good for limiting how much you treat yourself.
Create a Meaningful Goal for Your Money
Perhaps you’re spending every which way because you haven’t defined a goal for your money.
If you don’t have a plan for your money, you don’t really have any incentive to track it, do you?
Change that by creating financial goals. Do you have debt you need to pay off? Do you want to save for a vacation or a home?
These goals will make you second-guess your decision to buy things. Unfortunately, we have a finite amount of money. If you’re spending $10 on food, then that $10 can’t go toward your financial goal. It’s one or the other, and you’ll be forced to think about your decision.
Solution for: everyone can benefit!
Identify Triggers and Stay Away
My biggest spending weakness used to be anything beauty-related. I couldn’t go down an aisle in a department store filled with cosmetics without wanting to buy something.
Once I realized this, I stopped frequenting those aisles. I unsubscribed from sales letters from retailers and avoided certain stores.
I made it so I would never be tempted to spend in the first place.
This might sound a little extreme, but getting away from your spending triggers does a great job of lessening any temptation you might have to spend.”Out of sight, out of mind” really helped me.
Once I stopped feeding my addiction, I was able to break free. I haven’t turned back since.
Solution for: impulse spender, “I deserve it” spenders (if you can identify what your go-to treats are).
Get a Shopping Buddy
Can’t trust yourself alone in a store? Get an accountability partner to help you recognize when your spending is getting out of control.
It’s better if you’re both working toward controlling your spending issues, or if your buddy is mindful of their money already. Being around someone who doesn’t have any financial priorities isn’t going to be a good influence on you!
Honestly, my fiance helped me. He was the one who pointed out my spending issues in the first place. After that, he steered me away from those beauty aisles (of course, I’m sure he was happy to not be spending time in them, too!).
Solution for: everyone!
Budget Treats In
There are certainly times when we deserve nice things. The occasional splurge isn’t going to kill your bank account (hopefully).
To remedy your treats from getting out of hand, simply budget for them!
Give yourself a set allowance each month to spend on whatever your heart pleases. You can look forward to it, and you’ll have to make a conscious decision of when to treat yourself.
This should lead to more meaningful treats, too. Since you’ll only have, say, $30 to spend on yourself, you can’t go crazy getting everything on your wishlist. You’ll have to prioritize.
Solution for: “I deserve it” spenders.
_______________________
At the end of the day, money is a tool that should be used responsibly. If you’ve been facing buyer’s remorse, have gotten into debt, or are overwhelmed with having nothing left in your bank by the end of the week, you need to get control of your spending. Hopefully these tips will help!
Have you ever had a spending issue before? What type of spender have you been? How did you change your spending habits?
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I used to be deserve it spender, but after educated myself on money I soon realized there was a better way to use and spend my money. Also that many people work hard, harder than me everyday and are not treating themselves to rewards because of it. Once I looked at my money this way it was easy to change my spending habits.
I used to be more of a clueless spender, but that was many years ago! Once we started budgeting, I couldn’t live in that reality anymore.
Imagine if someone was ALL of those those traits. I think I would fall more under impulse buying. If I want something I want it NOW so it’s taken me a lot of time to try and break this thought process.
My husband had the “always be broke” mentality. It was endemic to the neighborhood he grew up in. It took awhile to break him of that.
These days, our main problems are if he is going full-ADD and I’m too tired to talk him out of it. It’s small purchases, but they do add up. Especially now that expenses are mounting up, I’m getting more serious about it. Lately, it’s a war over Snapple. He has extreme dry mouth and will buy one when he’s out and about.
I need to get him a plastic water bottle because he now magically doesn’t like the metal one he used to love. (Sigh.) And he needs liquid when he’s out and about. That should staunch that cost.
I have had an odd fascination with the envelope or jar system. It’s so simple that I think it’s genius, and it’s the only budget system that cannot be fudged or broken, since it’s impossible to spend more cash than you have.
Great tips & a well organized post.
DebtDiscipline It often just requires a change in mindset, doesn’t it? I personally like to think I deserve being debt free sooner, so I switch it around that way!
Holly at ClubThrifty Facing the numbers definitely helps you realize you need to be more in control of your spending!
Beachbudget Haha, I don’t think I know anyone who falls under all of them, but I also tend to stay around people who are responsible with their money. I think impulse spending can be the most dangerous, and the hardest to get around.
AbigailP Yes, those little purchases do add up! I had an ex once who claimed it was okay to go out to eat as long as he ordered off the dollar menu. It’s still not a good value, and depending on how much you eat, it costs more than bringing your lunch with you.
I’m glad you’ve figured out a solution! We like the plastic bottles, too. I got one off Amazon for about $10 and it’s easy to take with us on the road.
DonebyForty Right? It intrigues me, too. I think it’s probably one of the best ways you can get organized with your money and realize where it’s going. I imagine it’s a wake-up call to get to the grocery store and realize you only have $40 with 2 weeks left in the month.
I like the tip of identifying triggers and staying away — definitely huge for me. While I tend to not spend now, I used to love to shop. I avoid malls and shopping unless it’s a special occasion or a need something specific.
Financegirl Going to a mall is just begging for your cash or card to be used. I stay away as well! It’s also hard when you’re going shopping in a big box store because there are so many different departments. I just try and focus on what I went there for originally and put blinders on to everything else.
I am a big fan of limiting your available funds. I was just working with a client who has spending issues and we determined that the best course of action for her is to switch to cash only and stick with a specific cash amount for the week. It’s hard when you have credit cards that make you feel as though you have more money than you really do, but cash is the best way to keep yourself under control.
I am definitely an “I deserve it” spender (and yes, I love that episode of Parks and Rec!). My career is very stressful and I like to treat myself to something to make me feel good. That being said, having a goal to pay off my student loans (and a shopping ban on clothing) has drastically reduced my excess spending. I’ve also realized that being stressed about work is a spending trigger and have implemented other ways to deal with stress besides spending.
blonde_finance Definitely agree. If you don’t have it, you can’t spend it! Doesn’t get more simple than that.
Settle Your Finances I think being stressed from work is a huge, huge cause of spending for just about everyone. It’s so easy to get out at the end of the day and feel like you need a treat because you survived. Thankfully, getting to the root of that and figuring out why can help you think of other solutions!
I love this! I used to be a ‘I deserve it’ spender big time. I’ve been on a 6-month shopping ban since February though and ever since I started tightening up my budget and finding other ways to satisfy myself without spending money on stuff, I can now proudly say I’m a ‘This is my last one and I desperately need this necessity’ type of spender now.
I’m a control freak married to an “I don’t care where it’s going” kind of guy. Thankfully, he’s mostly saver, except when he’s in a store. He’s started to extend the courtesy of texting me before he purchases anything. This forces him to think before purchasing, and as long as it’s somehow worked into our budget I let it go (our budget categories are quite broad on purpose).
I definitely need a plan or I have been known to get sucked into “deals” and end up buying stuff I don’t really need because it’s on sale. Online shopping helps because I can type in what I want and be done without the temptation of other stuff around me.
Chonce A shopping ban is another great solution to use! I’m glad it has worked for you. I can relate to only shopping for things when it’s an actual need.
Hannah UnplannedFinance That’s great, Hannah! My fiance was kind of the same way. He’s a saver for the most part as well, but when it came to grabbing lunch at work, or getting something he thought he “needed,” he would just spend the money. Once I started budgeting for him (before we combined finances), he was more receptive to thinking things through. We always run purchases by each other now.
Eyesonthedollar Good point, Kim! It’s a lot easier to focus on what you need to buy online. And it’s less of a hassle!
I never go shopping without a list. Actually, I try to avoid shopping as much as possible because I am an impulse shopper and there is no room in my budget for that.
houseoftre Avoidance is a good tactic, especially if there’s no margin for error!
I totally used to be an “I deserve it” spender….so guilty of doing that all the time a few years ago! I was unhappy at my office job and decided that meant I should allow myself to get Starbucks on the way to work everyday or eat out to make myself feel better. So wrong in so many ways! I was trying to distract myself from the bigger problem….being that I needed to just get a new job!! hah. (I eventually did end up quitting and starting my freelance work from home and then magically my spending habit disappeared. Imagine that!)
Great post Erin! I love how you broke down the different types of
spenders. I’ve never really thought of it like that, but identifying
what type of spender you are is a great way to figure out how you can
put a halt to overspending!
All great suggestions, particularly Create a Meaningful Goal for Your Money.’ I have gotten away from using the terms ‘Budget’ and ‘Budgeting’ and think more in terms of following a ‘Spending Plan.’ As you note, if you have a plan for how you’re going to spend your money, you’re less likely to spend it foolishly.
Christina@EmbracingSimple I love the happy ending there! Work can really wear us down. By the end of the day, I think a lot of people are simply too exhausted to go home and want to cook, or they just want a treat to have something to look forward to. It’s definitely a lot easier to isolate yourself from spending temptations when you work from home, too!
WGatWealthGospel Thanks! I hadn’t either, until I started outlining where I wanted the post to go. There are so many solutions to curb your spending, but they can be more effective when applied to the right problem.
RetirementSavvy Thanks James! I like spending plan better as well. They’re essentially the same thing, but it sounds less restrictive. =) Having a game plan and goals for your money is key to managing it well and *wanting* to manage it.
It’s interesting to see people categorized like that. You’re right though. I’ve met someone like all of those types of people. It’s all about the mindset and it’s sad when people don’t realize that.
MoneyMiniBlog It’s not something we usually think about – it’s easy to lump everyone in together, but we all have different spending habits and mindsets! Just putting some thought into your actions can help, though.
Erin @ Journey to Saving “… but it sounds less restrictive.” Exactly what I have said in the past.