Curbing Spending Binges
I have found that there are two different ways people get into spending trouble. One is to live beyond their means and to have a constant stream of expenditures that are above income levels. The second is to have irregular spurts of large expenditures. (Yes, I know there are some people that experience both issues). For some time, I have found some financial advice to be not very applicable, since I don’t suffer from the first problem. Generally speaking, I have always maintained general spending levels within recommended guidelines and maintained the large categories of spending, such as housing and cars, well within reasonable boundaries. My problem has always been the equivalent of binge spending. Deciding, impulsively, to spend on one-off surprises. What I’m beginning to realize is that advice that is applicable for getting a budget and monthly spending under control, sometimes backfires for binge spending.
Last week, after a stressful couple of months, I found myself charging more and more things to the credit card. An extra night or two out for dinner (after all I was a bit too busy to cook), new winter clothes (since it’s snowing so much in the Northeast), souvenirs from a recent trip (may never go back there again), and massages with my talented therapist. Although some of it was due to the circumstances, I also realized that some of the spending was prompted by sticking to a strict budget month after month. Like many, the risk of frugal burnout is high. Here’s some ways that I will try to avoid this in the future:
–Plan for regular (small) treats — fun money is not a budget buster, unplanned fun money is. Rather than having pent-up demand cascade, I will be better about carving out a fun budget each month.
–Create choices for extra spending — rather than allowing yourself all of the above. Similar to the successful diet plan that allows for tradeoffs, thinking of an extra pair of shoes in exchange for that new sweater is the right way to go.
–Try to avoid shopping when tired or stressed — also similar to dieting, I find that I am more likely to impulsively buy things when I’m tired. Opt for a bubble bath or a walk instead.
–Have mechanisms that stop a binge spending episode from cascading – some people use cash envelopes to limit spending, others return unwanted items. The key is to stop a limited episode from becoming a full blown disaster.
shared at this week’s Carnival of Personal Finance
This is my personal Lenten project. Thanks for posting the tips.
I have spent $26 total since Wednesday on purchases outside the norm. It feels good to know that I am not blowing money away. My daughters and I are going to lunch after church, so I made sure I have cooked the rest of the weekend/week so it is a real treat and I won’t feel guilty for it.
I am a therapy shopper. It makes me feel better when something is bothering me, but I have noticed that the “happy” doesn’t last long. I am choosing to redirect the shopping energy into creative energy and simplifying energy (cleaning the clutter from buying to much un-needed stuff).
Glad I found your blog. Love your insights.
~Lanie J.
I think planning for these things are important. I recently started putting money aside for “indulgences” so I could guilt-free get a pedicure or my eyebrows waxed. I’m thinking now of starting another account for clothing, so I can go out and spend $400 or $500 in one day without guilt, if the money is set aside (and so I can avoid the mall, which I hate).
I love using ING for this, as you can set up as many separate accounts as you want, even if all of them only have less than a hundred in them.
“Planned fun money” is a great addition to the budget…everyone needs to ‘live a little’ to make the grind a little less grinding….wiggle room is a must.
Lanie, the happy doesn’t last long… that’s been my experience, too. But, sometimes you have to learn the hard way.
ldh, I use separate accounts at ING as well. Keeping categories helps me to keep impulses in check.
Ken, indeed, wiggle room is important. This does make me sympathize with people who have very, very tight budgets out of necessity. I think I wouldn’t hold up very well.
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