My spending trigger is FOMO. This is how I keep it under control

I didn’t have to spend $200 on a day ticket to the Austin City Limits music festival this year. But I had severe FOMO and the fear of missing out made me do it.

Before you say, “That’s the Gen Z of you,” let me say that live music is what triggers my spending. Concerts are the one variable expense that I struggle to save on each month.

Most of the time I find cheap ways to hear live music, like attending South by Southwest for free. Although I wouldn’t consider myself frugal, I am trained in personal finance. In general, I don’t tend to go on spontaneous shopping sprees and I’m pretty adept at hunting for bargains.

However, Austin City Limits is an expensive event that I couldn’t pass up (I’ve been there seven times). It’s a classic case of spending FOMO, when the fear of missing out on a fun and exciting opportunity pushes me to spend money.

Buying a concert ticket won’t break the bank, but it will if it becomes a habit. According to Steven Kibbel, a certified financial planner, compulsive spending, whether triggered by FOMO or something else, puts a strain on long-term financial stability. “It can make people more vulnerable to economic setbacks,” Kibbel said.

We all have triggers that cause us to overspend. Here are some tips that can help you.

What are output triggers?

For some people, boredom can cause them to overspend. You might find yourself scrolling to your doom and falling for an ad that landed in your inbox. Or you tend to reward yourself after a tiring day by buying expensive self-care products. Others may overspend because they don’t want to be excluded from their circle of friends or because they’re giving in to social pressure.

Whatever the triggers for your spending, it’s important to be aware of them so they don’t derail your monthly budget or plunge you into debt.

If you don’t understand your spending triggers, look at your spending and identify recurring spending patterns so you can regain control of your finances. Curbing bad spending habits may take some work, but it’s not impossible.

“Small adjustments in behavior and awareness can have a significant impact on financial security and lead to a better relationship with money in the future,” said Kibbel.

Strategies to curb excessive or impulsive spending

Identifying your triggers is just the first step.

🙅🏽‍♀️ Set financial boundaries

Kibbel says setting boundaries can help prevent future missteps. For example, if you can’t sleep at night, set spending limits on your accounts or remove your credit card information from the websites you browse. This gives you more time to think about your purchase before checking out and allows you to spend more carefully.

If you want to spend money when you’re bored, find something else to distract you, such as a movie. B. Cooking, going for a walk or watching your favorite movie. Stimulating your mind in other ways can help divert your attention from the urge to spend money.

🛑 Wait 24 hours (or longer) before purchasing

Take time to think about a purchase before pulling the trigger. First, ask yourself whether it is a want or a need, then take a break and come back to it 24 hours later.

I saved a note on my phone with links to random items that I once wanted but never bought again. Call it a cemetery if you will. My point is that if I let my mind wander for a while, I usually don’t make unnecessary purchases.

“This intentional gap gives you a moment to think and reduces the likelihood of regretting the purchase later,” Kibbel said.

✌🏼Unfollow your online triggers

Inbox clutter can be distracting when a newsletter from your favorite retailer catches your eye or you see an ad for a BOGO sale on Instagram.

Try to check your surroundings, Kibbel said. If this makes you spend too much, click the unsubscribe button or unfollow the social media account.

✍🏼 Set a budget and track your spending

Take the time to create a budget and set aside a specific amount of money each month for discretionary spending. If you’re goal-oriented like me, you might find it frustrating to go over your budget just for short-term gratification.

If you struggle with overspending, budgeting and tracking your spending throughout the month can help you stay accountable. Some personal finance experts compare this method to weight loss plans where you set goals, track your calorie intake, and record your daily workouts.

💸 Create a sinking fund for short-term satisfaction

A savings fund is a savings account for a specific purpose. When saving for a vacation, set aside money specifically for that trip. This method helps keep your goals separate and prevents you from having to dip into your fixed expenses or miss out on your essential living expenses.

If you tend to go over your concert ticket budget (or is it just me?), start a fund with a high-interest savings account. With some of these accounts still generating over 5% annual percentage returns, it’s a good time to take advantage of the benefits of compound interest.

👩🏻‍🤝‍👩🏾 Get an accountability partner

When you share your buying triggers and financial goals with someone you trust, it’s harder to ignore them. Whether it’s your partner, a family member, or a friend, ask them for help to hold you accountable when you’re tempted to spend money.