The 24-hour rule for overspenders
It feels like a release.
The dopamine hit of impulse-buying has been compared to feelings of euphoria, being high and having that post-orgasm halo sensation.
Bliss. But, for a moment, bliss is also a form of escapism.
It’s why so many spend without regard for the more practical considerations, “Does this work with my budget?” or “Does this even make sense for my life?”
Bad day at work? You order in for dinner, even though your fridge is full, because it feels so good (until tomorrow).
Unfortunate world event? You start clicking through the build-your-car function from your dream manufacturer. When you get to the quote, you book your appointment with the sales team the next day to finalize the vehicle purchase you don’t really need to be making. It feels so good (until the monthly payments start).
Election coming up? YOLO. The future of our country is uncertain so it’s best to book that last-minute vacation right now. It feels so good (until the credit card bill arrives).
This temporary pleasure always comes to an end and, when it does, the emotional and financial letdown can be rough. So we do it again and again to try and feel better.
But you can break this cycle, and be in control.
Take a 24-hour pause before hitting ‘buy now’
Self awareness. Intentionality. Wellness. Discipline. These skills only become available to you when you literally just stop.
I teach the 24-hour rule. Before you tap your credit card, withdraw money from the ATM, click the “order now” button for your digital cart, stop what you’re doing (leave the store or your computer) and pause for 24 hours.
It’s typically enough time to snap out of autopilot spending mode and quell impulsive urges. You can step back to consider what’s driving the purchase. Is it something you actually need. Or are you trying to resolve an emotional need such as fear, sadness or belonging through retail therapy? Giving yourself an opportunity to think greatly reduces the chances of buying something you can’t afford. It forces a shift in money mindset where you take control of the purchase situation, not your impulses and not the state of the world.
Become an intentional spender with discipline, not deprivation
Financial intention is a pro-spending narrative that begins with being aware of your spending habits (impulse triggers and all) and then consciously choosing to allocate your hard-earned money toward things that matter to you, that help to improve your life and bring you happiness.
If you truly want to take control of your spending, you’ll want to work on these four skills.
First is list making: The ability to write out or sound out what you need. List-makers drastically increase their chances of spending within their means by avoiding unnecessary purchases that aren’t on their list. Start with a regular grocery list (I use ChatGPT to help build a meal plan and shopping list). Then, expand your list making into all categories of spending.
Second is budgeting: The ability to manage your expenses within the threshold of your income. When the expenses tally up to be more than your income, a trimming exercise needs to happen, or debt is the result. If you’re flush with excess cash, great! You can save more. Any tool or template can work, so long as you feel you can stick to it.
Third is planning for your future self: Financial planning is about ensuring you have the money you need, when you need it. You’ll get a view of what it will take to fund your retirement and start saving and investing now to make it all happen. As you watch your money grow you’re likely to experience less impulsive spending urges because taking care of your financial well-being offers deep emotional satisfaction. A financial planner or money coach can help build your plan.
Fourth is goal setting: The ability to envision what you want for your life, and to take action. I encourage setting out two or three goals for the coming two to three years you can sink your teeth into. Examples include changing careers, downsizing as you get ready for retirement and paying off debt. Goal setting is a healthy version of escapism, so enjoy this process.
Reduce temptation, change your friend group, purge and declutter
These might seem like silly tactics, but they work.
Get rid of in-your-face shopping temptations. Take a break from your social feed. Unsubscribe from email shopping lists and text prompts from your favourite retailers. Take a different route home from work which doesn’t pass the mall. Don’t bring your phone to bed.
Now, step outside your screen, your office, your house, your usual habits and go for a walk with someone who doesn’t need to spend money to enjoy being with you. Toxic friendships, ones full of comparisons and that promote a linkage between material possessions and your self worth, will prevent you from taking control of your spending. Distance yourself from these people.
Aggressively purging and decluttering is the opposite of impulse spending. It’s like a shock to the system that wakes you up. It clears space in your home and your head, allowing you to appreciate what you do have, versus fixating on what you don’t.
Don’t be surprised if you feel a very strong desire to keep purging and decluttering after your first, second and third go at it. That could be your mind craving less stuff, few distractions and a greater sense of control in this ever-changing world.
Welcome it!
This article was originally published in The Star. Lesley-Anne Scorgie is a Toronto-based personal finance columnist and a freelance contributing columnist for the Star
