This post may contain affiliate links, which means I'll receive a commission if you purchase through my links at no extra cost. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure policy for more information.
Pin for later. Follow on Pinterest.
INTRODUCTION
Money is a tool for happiness, but overspending can wreck your budget, build up debt, and drain your wealth. And sometimes, it's hard to know when or why you are overspending. You may make a great income but are left wondering where all your money goes at the end of the month.
Maybe you are preparing for the Christmas holiday and wonder why you rely on credit cards. Or, perhaps you keep spending more and more on your wedding and don't know why. What causes you to overspend? Spending triggers. Don't know what spending triggers are? Let’s explore spending triggers and how to manage them so you can save money and achieve your financial goals.
WHAT ARE SPENDING TRIGGERS
Spending triggers are situations, emotions, or habits that prompt impulsive or unnecessary purchases. They can be subtle, like feeling restless and deciding to shop online. Sometimes, spending triggers feel more intense, such as shopping to cope with stress or anxiety. When triggered, people buy things without considering whether they genuinely need them, leading to overspending and a blown budget. Spending triggers have one thing in common—they make us act impulsively, often leading to purchases we later regret.
“The Psychology of Money” by Morgan Housel explores how emotions and behaviors drive financial decisions. I only realized some of my spending triggers by tracking my spending and thinking, “What was I thinking or feeling that drove my overspending?” Reflecting on your thoughts and emotions motivating you to spend money makes it easier to identify your spending triggers. Recognizing and understanding these triggers can help individuals make more mindful spending decisions and build wealth for the future.
HOW YOUR SPENDING TRIGGERS TRULY IMPACT YOU
By understanding your spending triggers, you can reframe how you see money and consider whether a purchase is worth it. Think of each purchase as time spent, as described by Vicki Robins in “Your Money or Your Life“. For example, if you make $50 an hour, are those $1000 shoes for your wedding worth 20 hours of your time to earn that money? When you understand what your spending triggers genuinely cost you, you become more aware of why specific triggers lead to overspending. Now, let's look at some common spending triggers.
COMMON TYPES OF SPENDING TRIGGERS
Spending triggers are the emotional, environmental, or social cues that prompt us to spend money impulsively. Recognizing these triggers—emotional, situational, or social (like gatherings or social media)—is the first step in taking control of your spending and making intentional financial decisions. Let's explore some common spending triggers and how they might show up in everyday life:
STRESS
Stress is another common trigger, as people often spend money to relieve tension or escape their worries. For instance, you might splurge on takeout to decompress after a long, overwhelming workday. I noticed that when I was stressed, I would shop to help myself feel better. For example, I'd spend $200 on new stuff for my home after a stressful day at work that I didn't need. Buying something new can temporarily make you feel in control or offer relief, but these quick fixes often lead to overspending and more stress later, especially when the bills come due.
By identifying stress as a spending trigger, you can start replacing these habits with healthier coping mechanisms, like meditation, exercise, or journaling, that don’t negatively impact your finances.
SADNESS
Sadness can be a powerful spending trigger, as people often turn to retail therapy to lift their mood or distract themselves from emotional pain. For example, someone might buy new clothes, makeup, or gadgets after a tough breakup to feel better about themselves. Similarly, a distressing day at work could lead to ordering an expensive meal or indulging in comfort food to cope. These purchases provide a quick boost of happiness, but the relief is often short-lived, leading to regret or guilt with the purchases later.
BOREDOM
When there’s nothing else to do, many people shop online or head to stores to pass the time and find momentary excitement. This might mean browsing online stores, checking out sales, or browsing shops without buying anything specific. For example, browsing wedding décor websites when you're bored could result in buying extra decorations you don’t need. Or, shopping for clothes online at 10 pm out of boredom and wondering why you are struggling to pay off your credit card by the end of the month. These purchases are trying to fill a void or occupy your time, but they drain your finances.
While shopping out of boredom might not seem harmful, it can quickly lead to unnecessary purchases and blow up your budget.
SCARCITY MINDSET
When you feel like an item is scarce, you may rush to buy it even if you don’t need it. When you operate from a place of scarcity, you fear missing out on opportunities because you believe they might not be available later. This sense of urgency can lead to overspending. Retailers often tap into this mindset with sales and limited-time offers. For example, seeing a “limited edition” or “only a few left in stock” label on a wedding item can trigger a sense of urgency, leading you to make quick purchases without much thought.
“I DESERVE IT” MENTALITY
The “I deserve it” mentality is a spending trigger that often leads to overspending. It encourages people to justify impulsive purchases as a reward for their hard work or stress. This mindset can make it easy to splurge on things you don’t need simply because you feel entitled to treat yourself. Whether buying a new outfit or serving a nice meal, these little indulgences can add up. Treating yourself is fine, but these frequent “rewards” can strain your budget over time.
HUNGER
A surprising but significant spending trigger is hunger. Hunger can cloud your judgment, making it harder to stick to a plan, and can lead to overspending. As a spending trigger, hunger can trigger you to make small impulse purchases that add up over time. Hunger will drive you to spend more while shopping because you are not in the best frame of mind. If you're making big financial decisions on an empty stomach, you're more likely to rush and spend more than planned.
PEOPLE-PLEASING
People-pleasing is a common spending trigger that can lead to overspending because it drives you to spend money to make others happy or gain their approval. This might mean buying expensive gifts, paying for group outings, or agreeing to costly wedding extras or unwanted guests to avoid disappointing someone. These expenses can add up, whether buying gifts, treating friends, or splurging on a wedding detail just because others expect it. While it’s natural to want to please loved ones, consistently spending to keep others happy can wreck your budget.
FEAR OF MISSING OUT (FOMO)
Social media can make it easy to see what others are doing and buying, triggering a fear of missing out. You might feel compelled to buy something because it's popular or trending, even if you don’t need it. FOMO might mean splurging on bridal trends or extra accessories for brides because you saw it on Instagram. Or maybe it means going on that last-minute Hawaii vacation during December because it was on sale. FOMO can lead to impulsive purchases and regret later, but recognizing this trigger allows you to pause, evaluate your needs, and focus on your priorities and financial goals.
HOW TO OVERCOME YOUR SPENDING TRIGGERS
Overcoming spending triggers involves both practical strategies and a shift in mindset, and books are a great resource to help educate, empower, and encourage you. “The Richest Man in Babylon” by George S. Clason teaches the discipline of saving and investing wisely, while “The Big Leap” by Gay Hendricks dives into addressing fears and self-sabotaging habits. Other books like “Think and Grow Rich” by Napoleon Hill also emphasize the power of setting clear, focused goals to help resist impulsive spending.
When you know the goals you’re working towards, it becomes easier to prioritize long-term financial success over short-term gratification. This clarity and mindset shift can help you stay committed to your money goals, even when faced with spending temptations. Here are some ways to conquer your spending triggers and focus on your goals.
IDENTIFY YOUR GOALS
Understanding your financial goals is essential to conquering spending triggers and overcoming overspending. Clear, well-defined goals provide direction and motivation, helping you see why saving and mindful spending matter. When you know exactly what you’re working towards—whether it’s paying off debt, saving for a wedding, or building an emergency fund—it becomes easier to resist impulsive purchases that don’t align with your dreams. For instance, if your goal is to save for a down payment on a house, you’ll be less likely to give in to the urge to buy unnecessary items that might derail your progress.
By setting clear financial goals, you create a strong foundation that helps you prioritize your spending, avoid temptations, and make decisions that support your future.
ACKNOWLEDGE THE SPENDING TRIGGER
Recognize when you're feeling an urge to spend and take a moment to reflect. Ask yourself, “Why do I want to buy this?” Does a need drive it, or is it an emotional reaction? For instance, if you’re about to buy another piece of wedding décor, consider whether it’s essential or buying it out of excitement or stress. Once you know your spending triggers, you can plan to counter them.
TRACK YOUR SPENDING
Tracking your spending is crucial in overcoming spending triggers because it helps you see where your money is going and identify patterns. When you keep a record of every purchase, you start to notice when and why you tend to overspend, whether it's after a stressful day, during a sale, or when feeling bored. This awareness can make it easier to spot triggers and understand how they affect your financial habits. You can track your spending on a budgeting notebook, excel, or budgeting app. By regularly reviewing your spending, you can set limits, create more intentional budgets, and make conscious choices to avoid impulsive purchases, ultimately giving you more control over your finances.
CALCULATE YOUR NET WORTH TO MOTIVATE YOURSELF
Tracking your net worth is a powerful tool for overcoming spending triggers because it keeps you focused on your financial progress rather than short-term desires. Regularly updating your net worth, including your assets minus your liabilities, gives you a clear picture of how your spending habits impact your wealth. Growing your net worth can motivate you to make better financial decisions and resist unnecessary purchases. It shifts your focus from instant gratification to building lasting wealth, helping you recognize that every dollar you save or invest brings you closer to financial freedom. Budgeting apps like Simplifi are great for tracking your net worth and spending habits to motivate you to stop overspending.
CREATE A BUDGET
Before making any purchase, create a budget or a spending plan. Books like “Get Good With Money” by Tiffany Aliche and “I Will Teach You to Be Rich” by Ramit Sethi are great first steps to learning about budgeting or spending plans. Whatever system you use, focus on allocating specific amounts for different categories, such as rent, groceries, personal treats, and savings, in a way that works for you. You can also automate your payments to make your budget even simpler and more effective. Having a budget helps you stay within budget and prevents impulsive buying.
MAKE A PLAN TO PAY OFF DEBT
Paying off debt can be a powerful motivator to overcome overspending and spending triggers. Crushing your debt forces you to be more mindful of where your money is going and prioritize essential expenses over impulsive purchases. Each payment made towards debt reduces financial stress and provides a sense of accomplishment, which can replace the temporary high of impulsive buying. Over time, your progress in paying off debt can boost your motivation to continue saving, raise your net worth, and help you stick to your financial goals.
FIND ALTERNATIVES TO SPENDING MONEY
Creating a new habit is the only way to overcome your spending triggers and overspending habits. If boredom drives you to shop, find other activities that bring you joy, like reading, dancing, or walking. If FOMO is your trigger, practice gratitude and remind yourself of your financial goals. Avoid going shopping when you are hungry, or try exercising when you want to spend money to please other people. Replace shopping as a stress reliever with other relaxing activities like yoga, a hobby, or even just chatting with a friend.
One effective way to break a spending habit is to redirect that money into savings. For instance, if you usually spend $20 on impulse coffee purchases, transfer that amount to a dedicated savings account instead. This approach helps curb unnecessary spending and builds a habit of saving regularly. Or, try a no-spending month around a frequent thing you overspend on, like clothes, food, or shoes, to save money. Over time, you’ll see your savings grow, which can motivate and reinforce your commitment to reaching your financial goals.
PRACTICE INTENTIONAL SPENDING
Intentional spending is a strategy that helps you overcome overspending. It focuses your money on what truly matters to you rather than reacting to triggers like boredom, people-pleasing, stress, or FOMO. Instead of buying out of impulse or pressure, intentional spending encourages you to pause and ask if a purchase aligns with your values and long-term goals. Intentional spending also motivates you to plan out purchases, which helps curb impulse buying. For example, if you often spend to keep up with friends or because of sales, you can decide ahead of time what experiences or items are genuinely crucial to you and budget for those. Or, if you’re buying a dress for your wedding, consider whether it aligns with your budget and is truly necessary.
By prioritizing and planning your purchases, you can avoid falling into the trap of spending triggers.
SEEK SUPPORT AND COMMUNITY TO ENCOURAGE YOU
If overspending is a big challenge, consider seeking support from friends, mentors, or a financial coach who can encourage you. Discussing your feelings and triggers can break the cycle of overspending. Having someone to remind you of your financial goals during wedding planning can help you stay on track.
CONCLUSION
Recognizing and managing your spending triggers is crucial to stop overspending and build wealth. Be mindful of emotional or situational triggers that may lead you to spend more than planned. You'll enjoy your life without financial stress by acknowledging your spending triggers, setting a clear budget, and focusing on your financial goals to conquer overspending and build wealth.
IN SUMMARY
How to Stop Overspending: Identify and Overcome Your Spending Triggers
- Spending triggers: situations, emotions, or habits prompting impulsive purchases and leads to overspending.
- Common types of spending triggers:
- Stress
- Sadness
- Boredom
- Scarcity mindset
- “I deserve it” mentality
- Hunger
- People-pleasing
- Fear of missing out (FOMO)
- How to overcome your spending triggers:
- Identify your goals.
- Acknowledge the spending trigger.
- Track your spending.
- Calculate your net worth to motivate yourself to overcome overspending. Try budgeting apps like Simplifi to track your net worth and spending.
- Create a budget.
- Make a plan to pay off debt.
- Find alternatives to spending money.
- Practice intentional spending.
- Seek support and community to encourage you.
Are you ready to overcome your spending triggers to stop overspending and start building wealth?
Pin for later. Follow on Pinterest.
