As Americans are vaccinated and stepping onto the scene, revenge spending is hopping into the front row! What exactly is revenge spending? It’s the desire or urge to overspend to make up for the loss of 2020. Personal savings rates hit an all time high last year but I’ve suddenly been dining out more and packages keep arriving at my doorstep. I want to share 5 ways to tackle revenge spending because you are not alone!
1. Set a savings goal from now until December 31st.
Commit to a dollar amount or percentage of your income but commit! If you are intentionally saving it’ll be easier to curb your appetite for spending.
2. Separate savings from spending.
Have separate accounts for your savings goals and even your fun spending money. I have an account for all vacations. I put money in there throughout the year so I have a bucket of fun money to pull from. As I pay for plane tickets or hotels, it comes out of this account. When the balance gets low or to zero then I know I either need to find funds to refill this bucket or to hit pause on any extra weekend getaways.
3. Be aware of your spending triggers.
Make a short list of your spending triggers. If you tend to overspend around the Holidays jot this down on a post it and keep it by your desk so you see it from time to time. Maybe you overspend when friends come to visit. You want to show everyone a good time and feel pressure to treat the gang since it’s your home town. We all have them, don’t feel bad just keep them top of mind to increase your awareness and prevention.
4. Shop local + small.
If you are going to spend your dollars, why not support the local businesses that fought to stick out this global pandemic? You tend to shop less when you can’t just swipe or click. Having the in person shopping experience is a fun, intentional way to spend your money.
5. Map out one-time expenses.
Grab a monthly calendar and look at what events you have coming up between now and the end of the year. Do you have kids birthday’s or flights back to your home town for Thanksgiving? Guesstimate a cost for any one-time expenses you will have each month and see if you can keep this within your budget. When you’re looking at your finances holistically you are confident and clear on your day to day spending.
If you tend to overspend one month make sure you’re sharing your experience with someone you trust. The more we talk about what’s going on the more we find other people are working on similar things. Creating healthy money habits is a lifetime of on-going learning!