Are Your Spending Habits Sucking the Joy Out of Your Life?

As someone who loves to shop, I totally get how difficult it can be to put that pair of shoes or a beautiful journal down. I mean, who can resist a good find or hot new products, right? But here's the thing: while shopping can be fun and satisfying in the moment, it’s crucial to manage your money effectively in order to avoid the negative consequences that may come later. 

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If you ever feel like your spending habits are draining the joy out of your life and everything you enjoy, you're not alone. Many overspenders find themselves stuck in a cycle of stress and anxiety due to their financial choices. Let’s break this cycle and reclaim the joy in your life with these five steps.

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1. Identify You Have a Problem

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Hi, I’m Kayla, and I am a shopaholic. Okay, I don’t identify as a shopaholic anymore, but before I acknowledged I had a problem, I didn’t even realize what was truly happening. Overspending can sneak up on you without warning. It often starts with small, seemingly harmless purchases—like grabbing that cute top from the clearance rack or treating yourself to a daily mocha latte—and then, before you know it, you’re facing overdraft fees and relying on your credit card to cover your essentials. 

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This cycle can be incredibly stressful and exhausting; constantly worrying about money can overshadow the joy you once found in the things you enjoy. I know that when I feel financially stressed, the stress starts to seep through every aspect of my life: relationships, how I show up in my work, my confidence, my sleep habits and my overall well-being. 

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It’s a slippery slope that many of us don’t even realize we’re on until we’re already slipping. But awareness and acknowledging the problem is the first and most crucial step towards taking back your control and peace of mind.

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2. Set Financial Principles and Boundaries

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It’s never too late to create and implement limits that protect your pockets and your mental health. Your financial principles should include limits around your spending, savings goals, debt management, and discretionary spending. 

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I suggest starting with setting limitations and non-negotiables for the money that goes toward savings, paying off debt, and non-essentials. Sticking to your boundaries will not only prevent impulse buys but also keep you on track to reaching your goals over time.

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One of my money principles is that I’m willing to go into debt for housing, car, and travel expenses. It might sound crazy to have a list of things you’re willing to increase your debt for, but life happens. This approach helps save you from guilt trips and the what-ifs.

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3. Create a Spending Plan

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Once you’ve established your boundaries, the next step is to create a budget—or as I like to call it, a spending plan—that brings ease and joy back into your life. Here are some steps to help you get started:

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• Track Everything: Having to track everything may seem scary or overwhelming, but once you have a system, it gets easier, I promise. You can use a budgeting app like MyBudgetCoach or a simple spreadsheet to track what is coming in (all sources of income) and going out (all of those pesky expenses). This will give you a clear picture of where your money is going and where you can cut back. And don’t worry if you start to notice that you spend an extra $50 a month on eating out than you planned; it’s all part of the learning process.

• Focus on What Matters Most: It’s your money, so spend it on things that truly matter to you. If you have expenses that don’t align with your values, goals, and experiences that bring you genuine happiness, it’s time to let them go.

• Celebrate, Celebrate, Celebrate (big and small): Every time you put $5 into your savings account, decrease your credit card balance, or stick to your discretionary spending plan for the month, celebrate! No matter how big or small a financial milestone may seem, it all means something and adds up. I like to reward myself with an iced Oregon Cheesecake latte. If you’re a coffee lover like me, you’ll get why that’s such a reward. You can decide what celebratory action will keep you motivated.

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4. Recognize Your Spending Patterns

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To better understand where your money is going, you need to recognize your spending patterns. Start by taking a close look at your bank statements and receipts for the past few months. Are there specific categories where you tend to overspend, such as dining out, shopping for clothes, or home decor? 

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Maybe it’s frequent small purchases that are adding up quickly, or maybe it's large occasional splurges that are causing your financial strain. Identifying these patterns will help you make more conscious decisions and adjustments as needed. Once you notice how much is going towards these expenses, you can start to plan and save for them and other things that you enjoy spending money on without feeling guilty. 

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People often find that making small and consistent changes in their spending habits, such as cutting back on daily coffee runs or limiting impulse buys, can lead to significant savings over time. These adjustments can not only improve your financial health but also bring a sense of empowerment and control over your life.

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5. Seek Support if Needed

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Sometimes, despite our best efforts, we need a little extra help. If managing your finances and controlling your spending feels overwhelming, consider working with a financial coach. You don’t have to navigate this journey alone. Budgeting is about more than just dollars and cents; our minds often get in the way of reaching our financial goals.

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As a Financial Self Care coach, I help my clients shift from reactive to proactive spending. Together, we create realistic spending and savings plans that allow them to spend without guilt and without feeling like they are on a restrictive money diet.

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Support is out there, so don’t hesitate to seek it; deciding to make an investment in financial coaching services was a transformative experience for me and my financial well-being. Remember, making conscious choices and small changes can lead to big results.

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Taking control of your finances is a personal decision that doesn’t have to be overwhelming.

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With the right systems and intentions, dare I say, it can actually be fun! By setting clear boundaries and creating a solid plan, you can spend without guilt and anxiety, and you'll start to feel different.

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You can even start today, and take the first step toward improving your spending habits and incorporating financial self-care into your routine. You'll be amazed at how these changes can help you save more and plan better for a joyful, stress-free life.