There are 1,001 different ways that our behaviors and impulses can break our budgets. From forgotten subscriptions to impromptu nights out that you “just can’t miss”, it seems like the temptation to spend can come anywhere, anytime.
We call this type of impulsive spending “autopilot” spending, because the desire to spend is automatic. It’s not a purchase made with intention, it’s a purchase born out of a long-term habit where the default response is “yes” when it should be “we’ll see”.
In this first of two blog posts, we’ll show you how to recognize and categorize your autopilot spending, and then in part two we’ll talk through the strategy to reduce these habitual purposes to get your spur of the moment spending under control.
Track It!
Before you can reduce your autopilot spending, you first need to know where it comes from. We recommend using a budgeting or money tracking app and connecting your accounts. You can further personalize the app with two expense categories – Essential Living and Frivolous. Every purchase you make will fall into one of these categories. You will just need to be honest when categorizing your transactions. Is giving into that late night taco craving really “Essential”?
Track Everything!!
Track absolutely EVERY purchase, regardless of cost. This means every pack of gum, every coffee, every car wash, and every grocery purchase. Get into the habit of asking for a receipt for all purchases and review them at the end of the day. Having the physical reminder can help prevent cheating on your tracking, especially if you pay with cash. Don’t forget – categorize every transaction as “Essential Living” or “Frivolous”.
In our next blog post, we’ll review what you can do with all the transaction data you’ve collected. If you just can’t wait, then it’s time for you to pick up your copy of Financial Game Changer.
Financial Game Changer, the latest book from author and financial advisor Lynn McCarty, offers simple, practical tips to help you shrink your financial worries, gain financial confidence, and build lifelong money habits to make you feel more secure with your finances.
You’re already on your way to financial freedom. The next step is to purchase Financial Game Changer, available at any of the following digital stores:
Buy it now at Walmart
Buy it now at Barnes & Noble
Buy it now on Amazon