With so much information and advice readily available, it's easy to get influenced by the wrong things. Enter deinfluencing, the guidance that tells you to stop the spending pressure so you can make smarter purchases.
Have you been looking to save more but often feel the temptation to spend when you shouldn’t because you don’t NEED it? It’s easy and very common to feel that nudge to buy, especially when ads and social media influencers pushing the newest and coolest things, are all over when you pick up your mobile device. From social media feeds to chatting with friends about their trips, new vehicles, or other material items, the temptation can feel overwhelming. Here are five personal finance habits to deinfluence that can have a significant impact on your financial well-being.
1. Comparing yourself to others
Social media and other sources can make it easy to fall into the trap of comparing your financial situation to others. This can lead to unrealistic expectations and can even lead to overspending to keep up with perceived standards. Remember, financial situations are unique and comparisons are not a productive way to manage your finances.
2. Focusing on short-term gains
It can be tempting to prioritize short-term gains over long-term investments. However, this approach – those impulse buys – can often lead to missed opportunities for growth and future financial security. Deinfluence this by focusing on building a strong financial foundation for the future, even if it means sacrificing those immediate “feel good because I bought something new” moments. Longer-term saving accounts such as CDs or Money Market Accounts with more interest earning potential will help turn those extra dollars you saved scrolling through ads into much bigger wins in the future.
3. Ignoring debt
Debt can be overwhelming and many people choose to ignore it, hoping it will go away on its own. This approach can have serious consequences for your financial stability causing more and more interest to build up, so it's important to address it head-on. Create a debt repayment plan and prioritize paying off high-interest debt first.
4. Acting out of fear
Fear can be a powerful emotion that can cloud our judgment when it comes to money. Don’t make decisions based on fear, such as pulling all your money out of the stock market during a downturn or avoiding a large purchase you’ve been working toward like buying a home. Instead, stay focused on your long-term financial goals and make decisions based on what’s best for you.
5. Not creating a budget
A budget is an essential tool for managing your finances, but many people neglect to create one. Deinfluence this by creating a realistic budget that includes all your income and expenses. Review your budget regularly and adjust it as necessary to ensure you're on track towards your financial goals.
Continue reading for more ways to be more mindful when it comes to spending money on impulse buys and unnecessary purchases.