Four habits that make you spend money – and how to avoid them

You know the moment – you check your bank account balance and wonder, “Where did all my money go?” These days, it’s alarmingly easy to lose track of our spending habits, especially with the ease of spending large sums of money by simply flashing your phone or card at a small device.

However, being budget conscious is crucial, especially in times of economic uncertainty. Jason Higgs, Senior Deals Strategist at Bountii, explores four habits that could be costing you more than you realize and how to break free from their grip.

Impulse purchases

Impulse purchases are the silent killers of budgets. Whether it’s that buy one get one free deal or the latest tech craze, these instant purchases can add up quickly.

Jason warns, “Impulse purchases are the enemy of financial freedom. They trick you into thinking you’re saving money when you’re actually spending it.”

Jason’s tips for breaking the habit:

• Practice the 30 day rule – whenever you feel the urge to buy something unnecessary, wait 30 days before buying it. The need often passes.

• Unsubscribe from promotional emails and don’t follow brands that tempt you to spend.

• Leave your credit/debit cards at home and only carry cash for essentials when you go out.

Subscription Services

In the age of streaming and subscription, it’s easy to rack up a multitude of monthly fees. From music and video platforms to meal kits and beauty boxes, these seemingly small fees can snowball into a significant financial burden.

As Jason advises, “Review your subscriptions regularly and cancel the ones you no longer use or need. Those £10 fees add up quickly.”

Jason’s tips for breaking the habit:

• Review your subscriptions quarterly and cancel subscriptions you are not actively using or need.

• Before you sign up for a new subscription, give yourself a one-week “cooling off” period to make sure you want it.

• Look for free alternatives like library books/movies instead of paid subscriptions.

Eating out too often

Grabbing a quick bite or meeting friends for drinks can be a convenient and enjoyable way to socialize. However, these outings can drain your wallet quickly if they become a regular occurrence.

As Jason cautions, “Eating out is a luxury, not a necessity. If you’re trying to get your finances in order, cooking at home should be the norm, not the exception.”

Jason’s tips for breaking the habit:

• Meal prep on the weekend so you have ready-made meals at home.

• Pack lunches for work instead of shopping every day.

• For social outings, suggest dinners or meetings in parks/homes instead of restaurants.

Retail therapy

Shopping can be a temporary mood booster, but it’s a habit that can wreak havoc on your finances. Whether it’s a new outfit, a gadget or a home decor item, the thrill of a new purchase is fleeting, while the financial impact lingers.

As Jason advises, “Retail therapy is a dangerous addiction. Find healthier ways to deal with stress or boredom that don’t involve spending money.”

Jason’s tips for breaking the habit:

• Find free or low-cost hobby alternatives, such as hiking, reading books from the library, or community sports.

• Practice mindfulness – when urges arise, pause and reflect on what you really need versus what you want.

• Spend time with supportive friends who don’t pressure you to spend money

To break these habits, start by meticulously tracking your spending. Identify spending triggers and set realistic budgets for discretionary purchases.

Look for free or low-cost alternatives for entertainment and socializing, such as exploring local parks, attending community events, or hosting dinner parties. Jason adds, “Cultivate a mindset of contentment and gratitude for what you already have, rather than constantly seeking fulfillment through material possessions.”

He adds, “Financial freedom is a journey, and breaking bad spending habits is a crucial step toward achieving your financial goals.”