Moon Kim’s New Year’s resolution is to forego most shopping and use up what she already has. Inspired by a New York Times column by Ann Patchett, Kim, 35, of New York City, decided to institute her own shopping ban for 2018.
“I hope to find greater appreciation for everything I do have,” Kim says. “[And] prove to myself that I can give up shopping for one year.”
Shopping bans aren’t the only unusual method to rein in spending. Some people buy only at certain times or tie purchases to other activities. “It can be a fun way to make it a game,” says Kelsa Dickey, financial coach and owner of Fiscal Fitness Phoenix in Arizona. Rather than being a gimmick, bans and similar self-imposed limits can be motivating and help change spending behavior.
[See: 12 Millennial-Inspired Ways to Spend Less.]
Shopping bans. Shopping bans aren’t anything new. Examples of people publicly sharing their shopping ban experiences date back to at least the 2006 book “Not Buying It: My Year Without Shopping” by Judith Levine. The bans can take a number of forms, with some people foregoing all purchases for a month, while others eliminate non-essential purchases for a longer period of time. Kim has developed a system in which she is eliminating most non-essential purchases, but will still dine out and buy items for her 10-month-old daughter. Her sister is embarking on her own shopping ban, and the two plan to swap clothes to refresh wardrobes as needed.
For Kim, the shopping ban isn’t only about saving money. It’s also about cultivating gratitude and proving she is up to the challenge. “Many people, including my husband and parents, don’t think we can do it for a year, which motivates me even more,” she says.
Buying only on certain days. A variation of a shopping ban involves making purchases only on specific days. Dickey says she often encounters clients who do most of their spending on the weekend. To curb impulse buys, she asks her clients to wait until Monday before making a purchase.
Dickey has found it’s an effective strategy. “You are back at work and realize how much you work for your money,” she says. Rather than spend their hard-earned money on something that may be frivolous, people often decide to skip the purchase.
Similarly, some people may limit specific purchases to specific days. For instance, they may only go to lunch with co-workers on Wednesdays or visit the coffee shop on Fridays.
Using cash limits. Creating a budget is standard advice to curb spending, but people need to find a way to stick to their budgeted spending amounts. Putting cash in envelopes labeled for every budget category is one popular option espoused by finance experts such as author Dave Ramsey. Once the cash in the envelope is gone, no more can be spent on that category until the next month.
That method works for some people, but can be limiting, says Linda Matthew, owner of MoneyMindful Personal Finance Coaching in Sacramento, California. She suggests a variation of this strategy that is more flexible. “You can give yourself an amount of money for the month, and it’s yours to use at your discretion,” Matthew says. There are no budget categories to follow. However, when the money is gone, all spending should cease for the month.
[Read: 7 Tips to Spend Less Without Using Coupons.]
Pairing purchases with another task. You may be able to deter purchases by pairing them with an unpleasant task. For instance, requiring yourself to purge two pieces of clothing from your closet for every item you buy may limit new purchases at the mall. Even if the strategy doesn’t prevent someone from making a purchase, there can be a benefit from reducing clutter or completing necessary work.
Dickey says she has used this method with clients who are small business owners. They may allow themselves, for instance, a trip to the coffee shop only if they use that time to make prospecting calls. “At least you’re being productive when you purchase [something],” she says of this strategy.
Using a wish list. A wish list can also be an effective way to limit spending. Dickey recommends people carry in their wallet a list of three items they’d like to purchase. When they make an impulse purchase, one item gets crossed off the list.
This strategy helps shoppers remain focused on the items they truly want. It also serves as a reminder that every purchase entails a trade-off and means someone might not be able to purchase other, more meaningful goods.
[See: 10 Costs You Can Eliminate in Retirement.]
Create spending parameters. Matthew thinks shopping bans and similar strategies can work well in the short term, but she recommends people also make a plan to create lasting, positive change in their finances. While that plan should include a budget and long-term goals, such as retirement, it can also incorporate parameters to make it easier to avoid spending situations. Those parameters may include never making a purchase until it’s been considered overnight or waiting a designated number of days before buying an item that costs more than a certain amount of money.
“I think people really yearn for structure and a plan,” Dickey says. That’s why these strategies can be successful. They allow people to spend, but provide a framework to do so. So if your New Year’s resolution is to get your finances in order, it might be time to put the spreadsheets down for a moment and consider these outside-the-box strategies as well.
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Shopping Bans and Other Unusual Ways to Control Spending originally appeared on usnews.com
