Community//

How You Can Save Money As An Impulse Spender

Here's how to take a one-way trip out of Broke-ville that you definitely need to end up with a happier life.

The Thrive Global Community welcomes voices from many spheres. We publish pieces written by outside contributors with a wide range of opinions, which don’t necessarily reflect our own. Community stories are not commissioned by our editorial team, and though they are reviewed for adherence to our guidelines, they are submitted in their final form to our open platform. Learn more or join us as a community member!

Impulse spending is a trait that most people have, much to their detriment. A survey done by CreditCards.com shows that five out of every six buyers are impulse spenders showing that most of us fall into this trap without even realizing it. Normalizing this sort of thing is what created credit card debt and allows it to mount up and create a massive wall that seems insurmountable when taken in its entirety. Saving money seems like a gargantuan task, but that’s not just from your perspective. According to iHeartRaves, most of the reasons behind spending is simply because we have encouraged bad habits when it comes to money management. Getting out of this circular logic is difficult, but not impossible. Here’s how to take a one-way trip out of Broke-ville that you definitely need to end up with a happier life.

Step 1: Know What Goes Where

Every single thing you’ve read regarding personal finance management probably mentions budgeting, and from the time you see that you toss it. Budgeting, that is, creating a budget, isn’t the most difficult thing in the world to do, but if you don’t know what you’re doing you’ll get daunted from the start. Investopedia notes that a budget tends to give you a goal to work towards, especially if you’re seeing your savings grow on a month-to-month basis. This short-term rush you get is similar to the kind of rush that clicker-games on phones tap into – the joy of short-term accomplishment. But this short term accomplishment isn’t something intangible like imaginary coins. It’s real-world cash that can be used to buy goods and pay for services. Which brings up the next point.

Step 2: Be Honest about Expenses

Far too often when making a budget we are dishonest about where we spend our money. The result is that our budget doesn’t work because we’re lying to ourselves about where our money goes. being aware of expenses, especially those that are recurring, helps to deal with issues that may arise with paying bills over time. The Federal Bank of St. Louis notes that millennials are among the least likely to have positive wealth accumulation during their lifetime. This comes from having too many obligations and no way to meet them, and all of this stems from being dishonest with yourself on your budget planning. Knowing what you have to pay for based on what volume of incoming funds you have access to helps to make sure you still have something left over at the end of the month to save. But nothing beats having a saving plan.

Step 3: Develop a Saving Plan

A saving plan is simply a calculation of how much you intend to save by what age and the steps you intend to take to get there. Savings plans allow for long-term financial development planning while offering a way to save money that doesn’t heavily impact day-to-day spending. The strain of having to save a large volume over a short amount of time usually leads to people breaking their saving plan in order to splurge, but this isn’t about the short term. We live in a world where short-term gratification is the norm, but that goes against what a long-term savings plan is supposed to accomplish. Giving something up now will ensure that you can afford something even better further down the line. However, if by the time you plan out your savings plan and your expenses are already more than your income, you have a problem, but surprisingly, it’s not a difficult problem to rectify.

Step 4: Side Hustles

Everyone has hobbies or things they do for fun. One of the best ways to ensure that there is always money coming in for savings is to create a side hustle that brings in some extra cash while still being something you find fun to do. Side hustles can be anything from selling items on eBay that you don’t use anymore to creating things like t-shirts and artistic pieces and selling them on Etsy or even Amazon for some spare cash to buy bitcoin. The main catch here is that since the money coming into your account primarily is from your regular job, you find that the stress of a side hustle is almost all but removed once you get into it. Eventually, if you get really good at a side hustle, you can start doing it full time and that’s where things really take off.

A Journey of a Thousand Steps

You’ve got to keep the long game in mind when it comes to saving. Retirement is something most people our age takes for granted because it seems like such a long way away. However, once the years start rolling in on your retirement starts looking bigger and scarier every year. Even if you’re not looking at retirement yet and just want a little extra money to spend at Christmas, this long-term savings plan is the ideal way to do it. Utilizing automatic expense trackers and account management services can add a priceless dimension to your savings as well as show real, tangible results when you do manage to save some stuff. The choice to save money is always yours, and even as an impulse spender, there’s a way to keep your money in your pocket and let it grow for you.

Share your comments below. Please read our commenting guidelines before posting. If you have a concern about a comment, report it here.

You might also like...

Community//

Surrounded by Reckless Spenders?

by Michelle Arios
Community//

Personal Finance

by Deberius Juma
money marriage
Community//

Is Money Affecting Your Marriage?

by Ryan Luke

Sign up for the Thrive Global newsletter

Will be used in accordance with our privacy policy.

Thrive Global
People look for retreats for themselves, in the country, by the coast, or in the hills . . . There is nowhere that a person can find a more peaceful and trouble-free retreat than in his own mind. . . . So constantly give yourself this retreat, and renew yourself.

- MARCUS AURELIUS

We use cookies on our site to give you the best experience possible. By continuing to browse the site, you agree to this use. For more information on how we use cookies, see our Privacy Policy.