For all that I’m a self-appointed maven of frugality, I have a few areas of problem spending. The biggest ones for me are dining out and cosmetics.  By problematic, I mean they exceed our budget and aren’t in line with our goals – obviously spending $500 in a few months on perfumes isn’t a problem, if you have the funds and it’s in line with your values. (If you want some help determining your values, I recommend The Simple Dollar’s 31 Days to Fix Your Finances series).

I’ve examined my spending triggers individually in a couple of different posts (i.e., “Reigning in the Dining Out Budget” and “The Economics and Psychology of a Spending Trigger”), but around a year ago I started to put together a list of more general ways to curb impulse spending. For me and for you (because we all dig lists, amirite?), here’s that list.

  1. Journal – privately, this time. This helps you to explore what you want and why you want it, and it helps you to “think on paper” about how you can avoid it. Every time I find myself spending too much on perfumes, I return to my journal and remind myself of the basics (i.e. “you already have more perfume than you can possibly wear,” “trying all of them is becoming a burden,” “every dollar you spend on perfume is a dollar you have less for your goals,” etc).
  2. Journal – publicly, through a blog or the like. In addition to the above benefits, you also gain a bit of accountability. My favorite strategy, when I’m tempted to spend inappropriately these days, is to ask myself, “How would I feel admitting this to the readers of my blog?” If that fails, I opt for “How would I feel admitting this to Jacob of Early Retirement Extreme?” someone I admire for his thrifty lifestyle that aligns very well with his values.
  3. Impose a waiting period. I can’t claim this idea is limited to me – search “frugality blog waiting period for purchases” and you’ll see it in a lot of places. Some recommend the waiting period should be based on the cost. I have to say, this is not a technique I use a lot. There’s a little of it in my wishlist recommendation (see below), in putting dates on items on my wishlist.
  4. Shop with an accountability partner. If you have someone like this in your life, you know who it is. I’m very lucky to have a few. My friend Viktoriya probably wouldn’t describe herself as frugal, but she grew up in the Soviet Union and has a different mindset towards materialism. When I go shopping with her, she sees it as her job to dissuade me from buying things, reminding me of all the negative aspects. “It’s a nice scarf,” she would say, eyeing something I was considering buying at a fleamarket, “but do you really wear scarves?” (Very little). My friend Jess, too, is quite frugal, and even though we enjoy trips to Marshall’s together, she’s very good at reminding me of the possible drawbacks of any purchase.
  5. Practice gratitude. Let’s face it, I – and probably you – have mostly middle-class problems. If the biggest thing we have to worry about is whether or not we should have breakfast out a couple of days a month, then we’re doing pretty good. I find I want to spend less when I remind myself, on a daily basis, of what I have and am grateful for.
  6. Question yourself. If you don’t have an accountability partner, you can try being your own. Some of the questions I ask myself are:
    • Could I borrow this?
    • Could I “shop” my family and friends for this?
    • Can I get it on Freecycle?
    • Can I get it used?
    • Do I have something at home like this?
    • Is there a coupon? (Most effective for online shopping, as you can search for coupon codes)
    • Most importantly – Is this a need or a want?

      • Along that line, New American Dream provides this wallet buddy (PDF download).

  7. Keep a wishlist. In addition to the Amazon wishlist that nearly every middle-class person has, I keep a wishlist in Google Documents. Here I list the item I’m interested in and the date I added it. When I’m considering a purchase, I prioritize by what’s been on the list longest that I still want. One thing I’ve tried to do – but I have to admit, hasn’t succeeded – is to use this list when considering a reward for completing a goal or reaching a milestone in my life. Unfortunately, I usually end up treating myself whether or not I’ve reached the goal :)
  8. Avoid places that encourage you to spend. For me, this means avoiding the perfume forums I frequent, or the websites of certain etailers. It means that when I go to deposit a check, I don’t go to the Big Lots next door – because I will almost certainly buy things I didn’t know I needed until I saw them. For some people, this might mean staying out of the mall, or certain stores.

I won’t lie – avoiding spending unnecessarily is still a struggle for me. Part of the reason I’m writing this is a reminder to go back to my values to determine what I need, what I really want, and what’s in line with the kind of life I want to lead.

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