Spending Temptation #1: At the Tail End of a Terrible Day
Maybe your boss yelled at you, your deal fell through, or your basement flooded—no matter what happened, you could use some serious cheering up. All too often, we look to buy that cheer ... which is decidedly less comforting when we see our checking account the next morning.
How to Combat Temptation: Remember the acronym for situations that make us extra vulnerable: HALT, which stands for Hungry, Angry,Lonely or Tired. “If you’re feeling any of those, recognize that you’re prone to poor decision-making.”
“Before you head out the door, ask yourself how you’re feeling and consciously rate your vulnerability on a scale of 1 to 10. When you know you’re vulnerable, you can use that opportunity to take more control.”
Learn how to destress,” she says. And, once you take a few minutes to calm yourself, you’ll be more likely to convince yourself to tuck that cash (or card) back in your wallet.
How to Combat Temptation: Remember the acronym for situations that make us extra vulnerable: HALT, which stands for Hungry, Angry,Lonely or Tired. “If you’re feeling any of those, recognize that you’re prone to poor decision-making.”
“Before you head out the door, ask yourself how you’re feeling and consciously rate your vulnerability on a scale of 1 to 10. When you know you’re vulnerable, you can use that opportunity to take more control.”
Learn how to destress,” she says. And, once you take a few minutes to calm yourself, you’ll be more likely to convince yourself to tuck that cash (or card) back in your wallet.
Spending Temptation #2: In the Mood to Treat Everyone
Being in a good mood can increase impulsive behaviors. Control is paramount when it comes to making the responsible choice, financial or otherwise.
How to Combat Temptation: “Only take enough cash for what you planned to spend and leave the credit card at home,” she suggests.
How to Combat Temptation: “Only take enough cash for what you planned to spend and leave the credit card at home,” she suggests.
Spending Temptation #3: Celebrating a Raise or Bonus
Good news merits celebration! Certainly, you’ve earned a treat—but there’s a big difference between a bouquet of flowers and squandering your entire windfall.
How to Combat Temptation: You’re the kind of person who is skilled enough to get a raise or promotion? Great—then you must also be the kind of person who is savvy enough not to spend it all right away!”Of course, you needn’t sock away every single penny: When you get a windfall like a bonus, a good rule of thumb is to mix work and play by putting 90% toward your financial priorities…and 10% toward something fun.
Spending Temptation #4: Getting a Tax Refund
A tax refund may feel like free money, but it isn’t. The federal government is reimbursing you for money you overpaid throughout the year. Because your money could have been growing in a savings or investment account, you actually lost out on potential earnings.
How to Combat Temptation: Try mentally reframing it as part of your savings—if you think of the money as something you already own, you’ll be more motivated to hang on to it.” Translation: This cash didn’t just fall out of the sky—it was already yours to begin with. Now do you want to part with it?
How to Combat Temptation: Try mentally reframing it as part of your savings—if you think of the money as something you already own, you’ll be more motivated to hang on to it.” Translation: This cash didn’t just fall out of the sky—it was already yours to begin with. Now do you want to part with it?
5 Spending Temptation #5: Opening a “Big Sale!” Email
We’ve all joined the odd email list (or ten), and we understand the temptation of a 50-percent-off message landing in our inbox—especially when there’s a time limit attached to the discount But online shopping is a slippery slope, and it’s hard to stop spending once you’ve started.
How to Combat Temptation: First of all, recognize that it’s never a great deal if you end up buying something you don’t need. Spot the tactics! How are the sellers appealing to you? That keeps you on your guard and makes you less likely to fall for it.
And if you caved and clicked, develop a habit every time you get ready to pay for something: “Before you check out, automatically go through your cart and ask yourself one of these questions: What are three other things I could do with this money? How many hours would I need to work to pay for this? Would I miss it in a month if I didn’t buy this now?” By the time you get through your questions, you’ll be better set up to resist the purchase.
How to Combat Temptation: First of all, recognize that it’s never a great deal if you end up buying something you don’t need. Spot the tactics! How are the sellers appealing to you? That keeps you on your guard and makes you less likely to fall for it.
And if you caved and clicked, develop a habit every time you get ready to pay for something: “Before you check out, automatically go through your cart and ask yourself one of these questions: What are three other things I could do with this money? How many hours would I need to work to pay for this? Would I miss it in a month if I didn’t buy this now?” By the time you get through your questions, you’ll be better set up to resist the purchase.
Spending Temptation #6: Moving Into a New Home
We’ve talked before about new home syndrome: the spending spiral that starts when you feel that your new home needs a new bathroom … and floor treatments … and furniture … and artwork. Before you know it, you’ve added thousands of dollars to your purchase price.
How to Combat Temptation: “When we make a big purchase—like a new home—it can throw off our sense of scale on smaller purchases. Weigh each cost against the other things you could buy for the same price. For example, would you rather have a $5,000 sofa, or a $2,000 sofa and a $3,000 vacation? You’ll be surprised how much more expensive your purchases seem when you aren’t comparing them to the price of a three-bedroom apartment.
How to Combat Temptation: “When we make a big purchase—like a new home—it can throw off our sense of scale on smaller purchases. Weigh each cost against the other things you could buy for the same price. For example, would you rather have a $5,000 sofa, or a $2,000 sofa and a $3,000 vacation? You’ll be surprised how much more expensive your purchases seem when you aren’t comparing them to the price of a three-bedroom apartment.
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