For many people, spending less and saving more is a priority in the New Year, especially as the cost-of-living crisis continues to rumble on.
Often, however, it’s easier said than done.
When the January blues bite, your best intentions go out the window and the urge to treat yourself to a bargain buy in the sales or grab a cheeky takeaway on a gloomy Tuesday becomes too much.
“Many people grapple with overspending and saving challenges due to a combination of psychological, environmental, and behavioural factors,” says author and mental health mentor, Cai Graham.
“Additionally, the lack of financial education, poor money-management habits, and the impulse to keep up with others contribute to the struggle.”
So-called retail therapy can be a problem if it’s used as a coping mechanism for managing difficult emotions.
“We sometimes call this ’emotional spending’,” says consultant psychologist Dr Elena Touroni, co-founder of The Chelsea Psychology Clinic.
“People may turn to shopping to mask feelings such as stress, boredom, anxiety, or low self-esteem, for example.”
A trip to the shops or an online binge can have a powerful effect on your brain, she explains: “Shopping can even trigger a dopamine ‘high’, similar to the effects of drugs like cocaine or opiates.
“However, this momentary rush is often followed by guilt, leaving people generally feeling much worse in the long run.”
So how can you fight that addictive feeling and save more in 2024?
Here, our experts offer their advice on how to strengthen your financial willpower…
Identify your triggers
The first step to reaching Zen-like money mastery is to recognise the emotions that drive your spending habits.
“Do you find yourself shopping after certain social interactions or following an argument with your partner?” asks Touroni.
“Identifying these triggers allows you to understand the emotions you’re trying to manage through your spending.”
If you notice certain patterns, it might be a signal that you need to address other areas of your life that are making you miserable.
“When we’re stuck in situations that we’re unhappy with, like being in the wrong job or in an unhealthy relationship, for example, we might turn to shopping as a way to inject some excitement into our lives,” Touroni says.
“By tackling these underlying issues, you can curb the drive to numb yourself through other means.”
Weigh up the pros and cons
Instead of giving in to impulse buys, try to practise money mindfulness by weighing up whether you really need a potential purchase.
“Taking a moment to step back allows you to assess whether you’re buying something for genuine reasons,” says Touroni.
“Create a pros and cons list, carefully consider your decision, and ensure your purchases align with your financial goals. This will help you make more mindful and financially responsible choices.”
Resist children’s pester power
“In the context of parenting, the desire to meet children’s demands for the latest toys and gadgets can become a powerful motivator to overspend,” says Graham.
“Parents often face the dilemma of meeting their children’s immediate wants versus teaching them the value of financial prudence.”
The key is for mums and dads to strike a balance between providing for their child’s needs and guiding them towards responsible money habits.
“Focus on teaching children about delayed gratification, budgeting, and distinguishing between needs and wants,” Graham says.
“This not only instils financial responsibility but also helps children appreciate the effort and value behind every purchase.”
She also suggests giving children an allowance based on completing tasks or responsibilities to demonstrate the link between earning and work.
“Encourage children to save a portion of their allowance for short-term and long-term goals,” Graham says.
“Introduce them to the concept of earning interest on savings, providing a practical understanding of the benefits of saving over time.”
Connect with your values
While retailers and marketers might prefer us to live in the moment and grab the goods they’re proffering, looking to the future can help to strengthen your resolve.
“Reflect on the qualities you really value in life and the kind of person you want to be,” Touroni says. “What legacy do you want to leave?”
Perhaps altruism is important to you and you want to provide for family members, or self-reliance is key and you want to get on the property ladder.
Touroni says: “Aligning your spending with your core values will naturally steer you towards what truly matters rather than giving in to superficial temptations.”