Are You Mindlessly or Mindfully Spending?

As we fast approach the festive season, so too comes the financial pressure often met with the colder months. With the vast increase in social events and celebrations, along with the societal pressure of gift-giving, our bank cards tend to work overtime during the latter half of the year. Although you may still be recovering financially from your summer travels, NOW is the time to take control of your finances and plan your expenditure for the rest of the year, ensuring you practice mindful spending rather than mindless spending. 

With the fresh September feeling of a New Year, it’s the perfect time to re-assess your current spending habits and embody new strategies so you can continue to thrive throughout the year, without the extra financial strain.  

Mindful spending – the key to financial wellness 

Reflect on previous spending 

Before diving into the festive season, take a moment to reflect and review your spending habits over the past few months. If you have been tracking in The Head Plan Finance Journal, reflect on your recent spendings, does anything stand out? What were your impulse buys? Are there any purchases you regret buying? If you haven’t been tracking before now, make a quick list of the larger purchases you can remember. Understanding exactly where your money has gone can offer invaluable insight into your financial position, helping you make informed decisions before the end of the year. NOW is the time to have a look back through your recent receipts and figure out where you have been spending unnecessary money. Don’t beat yourself up if you have gone off the beaten track recently, this exercise is more so about awareness and bringing your attention to your finances so you can adjust your system and make the necessary changes before the busier season.  

Set clear financial goals (budget)  

At The Head Plan, we believe in the power of writing down your goals and making them happen. Take your newfound September motivation and spring into action, setting clear and manageable financial goals for the latter half of the year, particularly for the excess money involved in the festive period. Planning in advance, setting financial goals and creating a budget enables you to take control of your finances. In The Head Plan Finance Journal, set your financial goals and deep dive into your monthly budget. Here, you can also track your daily spending and see exactly how it compares to your forecasted budget. Whether it’s gift-giving, social events or a little extra treat for yourself, having a plan in place makes it much easier to stay within your means.

Spend less than you earn 

This advice might sound straightforward, but it is a critical aspect of financial wellbeing that often gets overlooked in the lead up to the festive season. If you were to list your income and expenses, would there be a difference? It can be so easy to get wrapped up in last-minute plans and quick shopping trips, which instantly lead to spending more than you earn. Stick to your budget and make it a priority to live within your means. Regularly review your income as stated in your Finance Journal and double check your expenditure is not exceeding your income!

Non-negotiable savings 

Establishing non-negotiable savings is another cornerstone of mindful spending. Before the end-of-year expenses start piling up take the time to sort through your savings. Do you already have a saving method and habit or is this something you need to educate yourself on? To put it simply, decide on an amount you are going to save every month. This might be for Christmas shopping, upcoming leisurly lunches, the Christmas food shop, the pair of shoes you have had your eye on or the extra logs needed for the fire! By making this approach a strict habit it ensures that, no matter what, you’re contributing to your financial security. 

Mindless spending – the winter pitfall  

Do you often feel anxious about your money? Afraid to check your bank balance after a shopping splurge? Nowadays, most people have instant access to their finances via Apple pay... a super handy but often dangerous phenomenon. A lack of financial control is so common, much more common than you think! But that doesn’t make it feel any better. A lack of financial control is often met with mindless spending, so here are a few tips for you to curb your mindless spending in the bud for the latter half of the year...  

Be mindful around sales 

Sales and discounted prices including end-of-summer sales, Black Friday and Cyber Monday often lead to excess unnecessary impulse buying... the term we all know too well! At The Head Plan, we all love sales and will often encourage you to shop during sale-time, but we do recommend being mindful around sale periods. Go in with a plan... plan your Christmas shopping in advance, revise your splurge list and make the most out of the discounted prices. Have a think about the specific presents you would like to gift people this year and write a list in the note section of your Finance Journal. From this, you can spend time shopping around to ensure you get the best value and it fits into your budget.  

Unnecessary social events  

As the festive season approaches, your calendar can quickly become crowded as events seem to multiply, and new social gatherings appear at the last minute. To ensure you both prevent burnout and save the pennies, be intentional about the events you agree to. While some occasions are unmissable and the excitement of the season often makes it more tempting to say ‘yes’, don’t just attend things because you feel obligated to. Focus on the occasions that will bring you joy and align with your priorities. Take a moment to review your upcoming scheduled events in The Head Plan Agenda, how do these align to your goals and values?  

Need or want?  

Your spending habits can be so deeply engrained that even when you set intentions to stick to a budget, you can end up defying your own intensions. You need to create a habit of asking yourself... do I really need this or is it a want? Sometimes ‘wants’ are just as important, so make sure you keep track of the things you would like to treat yourself to. This can be added to your splurge list, so on the months where you managed to cut back on your barista coffees, or social activities were at an all-time-low you can delve into these funds for the items you had wanted. 

P.S Double check your subscriptions! You might be paying a monthly direct debit for an old app subscription you don’t use anymore and end up saving yourself some extra Christmas money.

Remember, small changes always make the biggest impact. Being in financial control doesn’t require a drastic change, it requires increasing your awareness and making consistent, mindful decisions that align with your goals. We know you can make it happen, and NOW is the time to start. As you navigate the festive season, keep these strategies in mind and take a mindful approach so you can enjoy the celebrations, without compromising your financial peace of mind.