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I didn’t need to blow $200 on a one-day ticket to the Austin City Limits music festival this year. But I got intense FOMO, and that fear of missing out made me do it.
Before you say, “That’s so Gen Z of you,” let me say that live music is my spending trigger. Concerts are the single variable expense I have trouble cutting each month.
Most of the time, I find cheap ways to hear live music, like attending South by Southwest for free. Although I wouldn’t call myself frugal, I’m trained in personal finance. I’m generally not inclined to go on impulsive shopping sprees, and I’m pretty skilled at bargain-hunting.
Except Austin City Limits is one costly event I haven’t been able to stay away from (I’ve been seven times). It’s a classic case of FOMO spending when anxiety over missing a fun and exciting opportunity pushes me to spend money.
Buying one concert ticket isn’t going to break the bank, but it will if it becomes a habit. Compulsive spending, whether triggered by FOMO or something else, is a drain on long-term financial stability, according to Steven Kibbel, a certified financial planner. “It can leave people more vulnerable to economic setbacks,” Kibbel said.
We all have triggers that make us overspend. Here are some tips to help.
What are spending triggers?
For some folks, boredom can trigger overspending. You might be doomscrolling and fall for an ad that ended up in your inbox. Or you may tend to reward yourself by shopping for expensive self-care products after a rough day. Others might overspend because they don’t want to be left out of a friend circle or when they’re succumbing to social pressure.
Whatever your spending triggers are, it’s important to be aware of them so they don’t derail your monthly budget or land you in debt.
If you don’t understand your spending triggers, look at your expenses and identify repetitive spending patterns so you can regain control of your finances. Curbing bad spending habits might take some work, but it’s not impossible.
“Small behavioral and awareness adjustments can have a significant impact on financial security and foster a better relationship with money in the future,” said Kibbel.
Strategies to curb excessive or impulsive spending
Identifying your triggers is just the first step.
🙅🏽♀️ Set financial boundaries
According to Kibbel, establishing boundaries can help you avoid future missteps. For example, if you have trouble sleeping at night, set spending restrictions on your accounts or remove your credit card information from websites you browse. This gives you more time to consider your purchase before checking out and makes spending more intentional.
If spending money out of boredom is your go-to, find something else to distract you, such as cooking, going for a walk or watching your favorite movie. Stimulating your mind in other ways will help direct your attention away from the urge to spend money.
🛑 Wait 24 hours (or more) before buying
Take time to reflect on a purchase before you pull the trigger. Start by asking yourself if it’s a want or a need, then pause and come back to it 24 hours later.
I have a note saved on my phone with links to random items I wanted at one point but never went back to purchase. Call it a graveyard, if you will. My point is that I typically don’t end up making unnecessary purchases when I let the thought simmer for a little bit.
“This intentional gap gives you a moment to reflect, reducing the chance of regretting the purchase later,” said Kibbel.
✌🏼Unfollow your online triggers
Inbox clutter can be distracting if a newsletter from your favorite retailer catches your eye or you see an ad on Instagram for a BOGO sale.
Try auditing your environment, said Kibbel. If it makes you want to overspend, hit the unsubscribe button or unfollow the account on social media.
✍🏼 Set a budget and track your spending
Take the time to create a budget and allocate a certain amount of money each month for discretionary expenses. If you’re goal-oriented like me, it might frustrate you to go over your budget just for short-term gratification.
If you struggle with overspending, budgeting and tracking your spending throughout the month can help you hold yourself accountable. Some personal finance experts compare this method to weight-loss plans where you set goals, track your calorie intake and record your daily exercise.
💸 Start a sinking fund for short-term gratification
A sinking fund is a savings account for a specific purpose. If you’re saving up for a vacation, you put aside money specifically for that trip. This method helps keep your goals separate, preventing you from having to dip into your fixed expenses or sacrifice your essential living costs.
If you tend to go over your budget on concert tickets (or is that just me?), start a fund with a high-yield savings account. Since some of those accounts are still earning annual percentage yields above 5%, it’s a great time to take advantage of the power of compound interest.
👩🏻🤝👩🏾 Get an accountability buddy
Sharing your spending triggers and financial goals with someone you trust makes them harder to ignore. Whether it’s your partner, family member or friend, enlist their help to hold you accountable when you’re tempted to spend money.
