Financial stress is one of the most common causes of stress I’m hearing about in my counselling and clinical hypnotherapy practice at the moment. Impulse spending can provide a brief thrill but often leads to regret, frustration and financial problems. Taking control of your spending habits and creating a sustainable financial plan can be liberating and empowering. By learning to make your money work for you, you can build a healthier relationship with finances, focus on what truly matters, and set yourself up for lasting stability. Here’s how to get started on this journey. This blog is not financial advice but rather a prompt to think about the consequences of your spending habits and how much more liberating and empowering some financial discipline is in the long term.

1. Build a Comprehensive Budget

A budget is more than just numbers on paper – it’s a powerful tool for managing your finances and taking control of spending. To create a comprehensive budget:

• List all your sources, including primary income and side earnings.

• Document essential expenses such as rent, utilities, insurance and groceries. Then, be honest about incidental spending that’s been occurring, such as cosmetics, clothes, socialising, holidays, random online impulse buys, etc.

• Factor in savings goals, debt payments, and contributions to an emergency fund.

You'll feel more empowered to make mindful choices with a complete picture of your income and outgoings. You’ll see what needs to be cut out of your spending and what would be beneficial to cut out. Budgeting shines a light on where adjustments can be made and builds confidence, providing clarity around financial choices and reducing the pressure to keep up appearances.

2. Track Your Spending and Identify Patterns

Tracking expenses can be eye-opening, often revealing how small purchases add up over time. Tools and apps like MoneyBrilliant, Pocketbook, or a simple spreadsheet help track and categorise expenses. Here’s why tracking matters:

• Awareness: Knowing where your money goes reduces the likelihood of impulse buys.

• Pattern Recognition: Identifying spending habits can help you pinpoint where you may be spending to impress others or alleviate insecurities, boredom, low self-esteem or stress.

• Improved Decision-Making: Recognising spending trends makes it easier to make conscious financial choices.

3. Recognise Emotional Spending Triggers

Emotional spending often fills a void tied to stress, boredom, sadness, or insecurity. Understanding your emotional triggers can help curb impulse spending. Start by reflecting on:

• Your emotional state when making impulsive purchases. Are you feeling insecure, stressed, or hoping to impress someone?

• Whether you shop to feel connected, alleviate loneliness, or reward yourself.

Recognising these patterns enables you to take steps to manage underlying emotions, which may involve reaching out for support, practising mindfulness, finding ways of connecting with people, or learning healthier ways to cope with feelings and boost self-worth.

4. Reflect on Spending to Impress Others

Insecurity and a desire for validation can drive people to use money to impress others, buy friendships, or gain loyalty. This can be overt spending buying gifts, paying for drinks and meals, or less obvious, like always being the driver but never being reimbursed by others for their share of petrol, parking, tolls, etc., e.g. One pick up or drop off at the airport can quickly add up to $50, parking in the city can also add up fast! Spending with this motivation, however, often leaves you feeling unfulfilled, used and resentful in the long term. To address this, ask yourself:

• Is this purchase meaningful to me, or am I hoping it will change someone’s perception of me?

• Am I using money to fill a sense of lacking self-worth?

Building a sense of security that doesn’t depend on others' approval can be transformative. Working with a therapist or practising self-affirmation and personal growth activities can help you feel more fulfilled without overspending on external validation. I do a lot of work on this with clients these days.

5. Overcome the Scarcity Mindset

A scarcity mindset, or the belief that resources are always limited, can fuel impulsive and restrictive financial behaviours. This mindset often stems from early-life experiences or beliefs picked up about money and success. To begin shifting this mindset:

• What to Look For: Scarcity thinking might look like hoarding money without considering investment opportunities, e.g. higher interest accounts, overspending, or feeling that you never have enough, no matter your income.

• How to Shift It: Embrace an abundance mindset, exploring the idea that money can flow more steadily when managed wisely.

Overcoming a scarcity mindset encourages healthier financial choices, enabling you to make spending decisions with clarity and reduced fear.

6. Set Financial Goals to Make Your Money Work for You

Shifting from constantly working for money to making it work for you is empowering. Setting clear, value-driven financial goals can foster long-term security. In Australia, here are some steps to consider. Again, this is not financial advice, but some prompts to get you thinking about the possibilities that you can research or seek proper financial advice about:

• Savings and Superannuation: Setting aside a portion of your monthly income for specific goals and retirement may be prudent for you. Making voluntary contributions to your superannuation can help build wealth with tax advantages.

• Investment Education: Learn about Australian investment opportunities, such as shares, Exchange-Traded Funds (ETFs), and government bonds, as well as tax offsets for long-term capital gains.

• Financial Advice: Seek professional financial advice to help understand your options, strategies, and opportunities in the Australian economic and tax system. There are many podcasts and books on the subject to start with.

• Be wary of Scams. This can never be overstated. Scams are increasingly sophisticated; be vigilant.

Transitioning toward making money work for you creates a sense of freedom and control, helping you enjoy life without constantly chasing approval or battling financial stress.

Incorporating these strategies into your financial life allows you to take control of your spending, curb impulsive habits, and build a secure financial foundation for the future. Financial empowerment begins with informed, intentional choices and the satisfaction of knowing you control your money – not the other way around.

Contact me if you’d like help resolving the emotional drivers for overspending and impulse spending. The contact details are below. Clinical Hypnotherapy can help you gain the insights you need to shift your mindset towards financial responsibility and freedom.