Mindful Spending

Key Takeaways

• 1. Mindful spending means evaluating your purchases before you make them.
• 2. Using a mindful spending approach can help reduce financial stress.
• 3. Before you make a purchase, take a mindful moment to connect with your finances.

Have you ever made a purchase that seemed like a great idea at the time, but when you look back on it, you realise it wasn’t actually what you wanted? This is often referred to as an ‘impulse buy’. For many of us, buying something produces an immediate positive feeling. However, making too many impulse purchases can leave us with regrets and even cause financial problems. Which is why it’s a good idea to practise mindful spending.

What is mindful spending?

Mindful spending is about making a connection between money and the role it plays in your life. When you practise mindful spending, you evaluate purchases before you make them. In other words, you train yourself to become conscious of what you buy, when you buy and why you buy.

Think about the last purchase you made. Did you need it? Was it used more than once? Is it sustainable? Can it be recycled? Was there something else that could have been purchased at a lower cost but of comparable quality? These are questions you can ask yourself in the future before making a purchase to become a mindful spender.

Why is mindful spending important?

Mindful spending doesn’t mean you have to give up all the things that you enjoy. Instead, a mindful approach to spending may make you more aware of the impact of your purchases on your personal finances and even the world around you.

The benefits of mindful spending include:

• - Feeling more in control of your personal finances
• - Reaching your financial goals sooner
• - Reducing financial stress.

Three tips for mindful spending

Here are three tips to help you practise mindful spending:

• 1. Pause before you buy. Create the space to separate yourself from your immediate emotional state, so you can think about the purchase and if you really need it.
• 2. Get to know your finances. Track your expenses and create a budget to help you prioritise your spending. When you are tempted to make a purchase, think about whether it fits within your budget.
• 3. If you do need to buy, optimise your purchase with a credit card that rewards you for your lifestyle needs. Look for dining, shopping or travel deals from your favourite brands for extra savings. Or, pay for things you need with your card so you can accrue points to pay for things you want.

Grow mindfully with Citi

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