Do you find yourself living paycheck to paycheck or constantly stressed about money? If so, you likely have bad spending habits. Don’t fret because you are not alone. 

About 70% of respondents in a survey listed bad spending habits as one of their most harmful financial weaknesses [source].

Those who admit to bad spending habits struggle with impulse buying. They are grabbing stuff and cramming them in their shopping carts, whether in a store or online. They spend out of boredom instead of doing comparison shopping. 

Sound familiar? If you are like the 70% of those surveyed who admitted to bad spending habits, there is a solution. It is possible to break bad habits – people do it all the time! 

Use the following 9 tips to help you fix your bad spending habits. 

1. Ask Yourself If Shopping Brings You Lasting Joy

They call it retail therapy for a reason. Many people find that shopping provides the emotional boost that they need. The problem with retail therapy (aka shopping for the sake of shopping) is that these feelings of joy don’t last long after the purchase is made. 

If you shop for the sake of shopping, you will never be done. You will always need “just one more thing.” It’s a high.

Have you ever felt great while you were shopping but then felt consumed by guilt after you looked at your receipts and shopping bags later? 

Have you ever bought something and then realized it didn’t make you as happy as you thought it would? 

Buyer’s remorse is real. Be honest with yourself about the reality that these frequent “cheap” shopping sprees are not that fun because they cause you long-lasting mental and financial issues.

2. Pay Attention to What You’ve Bought and Forgotten

Have you ever bought something ignoring the fact that you already own something that serves a similar purpose (such as another pair of sunglasses or a new bag)? This happens when we think joy comes from more. Rather, putting your stuff to good use is very satisfying.

Take a look around your home. Are there pieces of home décor or gadgets you fail to even notice now? What do you own now that can be better displayed or used?

Keep this in mind the next time you shop. When you pick something up, ask yourself: Do you really need it? Will you still appreciate the purchase months from now? Or will it become clutter that you never use or look at and causes you stress.

3. Consider the Reason Why You Feel the Urge to Shop

Have you ever asked yourself why you feel the urge to spend money? If not, now’s the time to ask and answer that tough question. 

Many times, people spend money to make themselves feel better about something else. 

Bad day at work? Spend money. Experiencing FOMO? Get it now. 

Celebrating a small win? Buy something?

Bored? Let’s go shopping.

If you can become attuned to the different reasons that fuel your urge to shop, you will be better able to control the impulse in the future. 

When you feel the desire to make a purchase, notice the temptation. Let the immediate feeling pass. 

Free Workshop – Join our free Simplify Money Workshop

The *only* way to save money is to spend less than you earn. That means you need to decrease your expenses or increase your income.

We want to help you do both.

Join our FREE Simplify Money Workshop to learn the fundamentals of growing wealth. Because when you can spend less than you earn, your money has no choice but to grow. You will build your savings and pay down debt. 

What’s more? We’ve got a bunch of free money-hacks to share with you:

  • Hacks to lower your monthly bills
  • Hacks to spend less on debt
  • Hacks to start investing
  • Hacks to increase your income by $20/month (with no extra effort)

This workshop has everything you need to accomplish the cardinal rule of personal finance: keep your income over your expenses.

Join our free 5-day Simplify Money Workshop, and start growing your wealth today.

4. Recognize That Stuff Eventually Becomes Clutter

My mom loves Christmas and has plenty of Christmas décor to prove it. But one day, she realized her Christmas collection had overtaken all of her storage areas, and it was becoming more and more stressful to pull everything out each year (not to mention put it all back up). 

The amount of stuff she had accumulated made what was once a joyful occasion into a stressful one.

People do this in many different ways. All the little things you buy eventually become clutter. 

A cluttered home causes stress and frustration. Take a look around your home. What types of clutter do you have? Are your kitchen cabinets overflowing? If so, do you really need another coffee mug?

5. Look at Your Bank Statement

A quick and easy way to address bad spending habits is to look over your bank statements. Go through your recent bank statements and add up all the unnecessary purchases. 

When you do, you will notice how all the needless spending on “stuff” wreaks havoc on your bank account.

The next time you feel tempted to shop or buy something without reason or thought, remember what the bank statement experience taught you. 

Saves Money Faster With Higher-Interest Savings Account

How much do banks pay in interest?

The national average is 0.08%.

That’s nothing. $10,000 in savings will earn you $8 in interest after one year. Whoop-die-doo…

Don’t be average. Bank smart. Put your money into a high-yield savings account like CIT’s Savings Builder.

Last I checked, the Savings Builder interest rate was 5X the national average.

That’s a boost your emergency fund will feel. See the CIT banner below for Savings Builder’s current interest rate.

Savings Builder

6. Give Yourself a Buying Checklist

A great way to stop impulse buying or frivolous shopping is to create a buying checklist. Run through the checklist before you make a purchase. 

  • Can you afford it? 
  • Does it serve a purpose/function? 
  • Will it replace something else that you will donate or get rid of?
  • Does it have a place to be stored or displayed in your house? 
  • Will you use it more than once or find joy in it regularly?
  • If you answered yes to the above, wait a few more days. 
  • Do you still feel like you need the item? 
  • If yes, buy it.

A checklist will ensure you will be intentional when you buy something.

7. Make It Harder to Spend Money

Modern technology has made it way too easy to form bad spending habits. If we want to make a purchase, we tap our phones, wallet, or watches and buy something instantly. 

Our credit card information is saved in our browsers and online accounts. We can order something and get it the same day.

Make it harder for yourself to spend money. Remove your credit card information from your online accounts. Use cash as much as possible. 

8. Do Comparison Shopping

With the ability to click and buy immediately, people don’t spend nearly as much time comparison shopping as they once did. 

You could be overspending simply because you didn’t take a few minutes to do price comparison shopping. 

For example, many people make Amazon purchases because it is quick, easy, and convenient. However, if they took the time to comparison shop, they’d discover many sellers significantly increase the price from where items are originally sold. 

If you are worried about your financial situation and know your bad spending habits are to blame, you can turn things around. 

  • Awareness of bad spending habits is key
  • Take inventory of the stuff you have
  • Make it difficult to mindlessly spend 

Get Discounts with Capital One Shopping

When you shop online, Capital One Shopping will price check other online stores to help you get a better price. What’s more, when you download the Capital One Shopping browser extension, it will automatically search for coupons and promo codes for you.

When you’re checking out from Amazon, Capital One Shopping will scan your cart.

If a product you’re buying has a coupon code, the Capital One Shopping button will let you know.

You can then apply the code to your cart, and effortlessly save money.

Try the free Capital One Shopping extension here! Because why say no to free coupons? 

9. Unsubscribe and Unfollow

Who among us hasn’t clicked on an email or social media post advertising an amazing sale and bought something just because it was on sale? That’s how they get you!

And, of course, they need your email address so they can bombard you with more buying opportunities. 

If you struggle with buying things just because they “were a good deal,” declutter your inbox: Unsubscribe from your favorite retailers’ email lists. Unfollow pages that frequently tempt you with a good deal.

Trust me, you won’t miss a thing.

Want to save these tips for later? Click here to pin this post!

Be sure to follow us on Pinterest for more money-saving life hacks!

*Capital One Shopping compensates us when you get the Capital One Shopping extension using the links we provided*