We have all heard about being more mindful.
We are even told to be more mindful. Watch what you say. Watch how you act. Think before doing ABC.
But how about being mindful when it comes to spending?
I can't actually remember myself being told to think before I bought something and as you would have read in my recent blog about myself, I didn't think about spending money at all. I wasn't mindful.
However, going through that experience has made me more mindful. It makes me think, "Do I really need that", "Can I get it cheaper elsewhere or another way?". Just generally thinking more around money.
So let's take a look at Mindful Spending. It basically goes beyond the traditional budgeting and it focuses on making sure your spending habits align with your values and your long term goals.
Here's how you can approach Mindful Spending:
Identify Your Values and Goals
Start by identifying what truly matters to you. Really dig deep into the surface as usually when we say it is one thing, it is a lot deeper and has a deeper meaning. What are your short term and long term financial goals?
Want to buy a house? A Car? Have a holiday once a year?
Do you value experiences, security, personal growth, or something else?
Understanding your values will help guide you and your decisions about where your spending your money.
Track and Reflect
Keep a spending journal for a month or two. Record every expense, no matter how small. You can use your budget to help with this as well.
At the end of each week, review your spending and consider whether each expense aligns with your values and goals. This self awareness will help you identify unnecessary or impulsive spending, and help you put a stop to it.
Prioritise Spending Categories
Put all your spending into their own list, like essentials (housing, food, utilities), goals (savings, investments), and little treats (entertainment, eating out, take away etc).
Allocate percentages of your income to each list based on their importance to you.
This ensures you're putting money toward what truly matters.
Practice the 24-Hour Rule
For non-essential purchases, give yourself a 24-hour waiting period.
When you want to buy something on impulse, give yourself a day to think it over.
This reduces impulsive spending and gives you time to decide if the buying what it is really does align with your values and what you are wanting to achieve.
Use the "Cost per Use" Metric
When looking to buy more expensive items, calculate the cost per use.
Divide the price by the estimated number of times you'll use or enjoy the item. This does sound rather odd but you will be more aware and help you realise the true value of what you're buying.
Embrace Minimalism.
I for one hate clutter. I would love to live a more minimalistic lifestyle, however, with 2 young children, it isn't 100% possible right now.
A minimalist lifestyle can be created by decluttering your space and focusing on owning and buying only things that add value to your life.
This can lead you to reduce your spending on anything that really isn't necessary.
Automate Savings
I have mentioned this in previous blogs however set up automatic transfers to your savings or investment accounts as soon as you receive your income.
Treating saving as a non-negotiable expense can help you reach your financial goals faster. Remember to build savings into your budget as an outgoing.
Negotiate and Shop Smart
Who doesn't love to haggel? My husband will haggle anything. Quote literally!!
So when you have a bill renewal. Negotiate. Think about whether you can negotiate with a certain purchase as well.
Research what you are buying thoroughly, look for discounts or coupons, and consider second hand or refurbished options. Most of the time, there is always a discount code you can use or a cheaper alternative which will save you money.
Regularly Review and Adjust
This is an important step in being more mindful around your spending.
Revisit your spending plan and financial goals regularly.
As your life circumstances change, your values and priorities might also shift. This is to be expected. My prioritise have changed drastically since becoming a Mummy and having to be very mindful and savvy when it comes to spending so I am able to stay at home with the children.
Adjust your spending plan accordingly to stay aligned with your every changing goals.
Celebrate Progress
Give yourself a pat on the back!
Recognise and celebrate your achievements along the way.
Saving money doesn't mean you have to deprive yourself; it means you're making intentional choices that lead to a more fulfilling financial future. You will definitely feel less stressed and more in control when you are more mindful.
Remember, the key is to be intentional and conscious about your spending choices. Mindful Spending is about aligning your financial decisions with your values, allowing you to achieve your goals while finding greater satisfaction and purpose in your spending habits.
I wish you all the best in becoming more mindful.
Feel free to reach out and if you would like to go on a 21 day journey to help your money mindset further, go grab my book www.themoneysavingmum.uk
