How To Overcome Spending Addiction As Students?

April 2, 2024

Gen Z is the biggest trend follower. 49% of students aged 18-23 shop twice a week. It is the reason the average cost of living for students rose from £924 last year to £1724 in 2024. Inflation blues may impact the rental and groceries.

However, one can curtail unnecessary expenses by encountering them. Students struggle to overcome spending habits quickly. You may use credit cards more than often or delay savings. Eventually, it hurts your finances, savings and credit score.

Thus, one must engage in conscious spending. Think of it like this-

“Will buying this item impact any of your short-term goals?”

For example, if you like the Reebok shoes and want to benefit from the price drop, wait and ask yourself, – “Will this expense impact your rental fees?” If yes, avoid it. Instead, analyse the need before buying anything. It will help you overcome overspending.

Similarly, you can curb your spending habits as a student in other ways. The blog discusses some unique strategies to overcome spending addiction.

6 Tested strategies to curtail spending as a student

To curtail spending habits, you should know the reasons you shop. The most common reasons that provoke one to shop is- constantly thinking about the next product to buy. It is one symptom of students who overspend. Secondly, the overspending undergraduates prefer to spend regardless of the amount they save later.

If you relate to these symptoms, you overspend. Here are some strategies to limit spending as an undergraduate:

1)   Check what tempts you to shop

Usually, one struggles to resist the notifications promoting flat 80% discounts on products. It could also be about new launches from your favourite brand. Additionally, loyalty discounts also promote quick purchases. If you often shop to get a discount on your next visit, you may overspend. Sometimes, you do not want the things, but you shop anyway.

Furthermore, promotional discount on new credit cards makes one spend more. You feel like using the offer to the best. However, it increases your spending significantly. Identify these triggers and write them down. Always check it before your next purchase.

2) Pen down things that improve lifestyle

Spending on things that improve your lifestyle is better than spending on things that make you happy. It is because happiness is momentary. For example- you may be happy to get the most anticipated shoes on the shelf. However, it would not matter after 1-2 months.

Instead, think about aspects that make your life comfortable. It could be – investing in emergency funds, saving for car purchases, or career improvement goals. These aspects help you ensure a smooth lifestyle. Regular investments in emergency funds prepare you for uncertainties. However, if you share chances to skip payments because of critical need, do not worry.

Getting no guarantor loans from a direct lender in the UK marketplace helps you with that. You can get the money the same day without hassle for any short-term requirements. Additionally, no guarantee requirement makes it an attractive option for students.

3)   Delete wish lists and carts on online platforms

Most individuals find it an obligation to buy things on the cart. You may feel like buying items on the cart when you visit the site. However, analyse whether you need the product anymore. Sometimes, financial issues make one shift priorities. Alternatively, you may not like the idea anymore.

Delete such items from your Wishlist. It will help you restrain discretionary shopping and save money. Ironically, wish lists only provoke you to buy more, mostly unnecessarily. Instead, bring it to practice buying things only when you need them.

4)   Reduce your social media hours

Sometimes, students buy out of indirect influence. As mentioned above, Gen Z follows the trends the most. Thus, social media is the prime source of trends-setters. Do not fall prey to spending when you hardly need it.

If constant peer pressure from your buddies provokes you, stop scrolling. Reduce your social media hours and instead use them on budgeting. Identify the best ways to budget for your lifestyle. You may spot several budgeting applications that may assist you with that.

Divide your expenses into two categories- needs and wants. Needs may include important expenses like- rent, college application fees, car fuel or repair costs, etc. Alternatively, wants may include things that add to your happiness- like- dining out, movie night, planning a weekend gateway, etc. Prioritise needs over wants. It is a surefire way to reduce spending.

5)   Set financial goals

Having financial goals is the route to ensuring a stable monetary profile. It helps you manage money better and reduce overspending. Identify your prime financial goals as a student. Begin by analysing your lifestyle, desires and income.

Next, set goals like- clearing debts, saving for student loan payments, saving for career improvement goals, etc.   Having goals restricts one from overspending.  Among these, clearing debts is the most important. Here is one example of how to save for financial goals as a student easily:

Financial goalsTimeframeAmount required/month
Emergency fund6 months£1000
Car purchase1 year£4000
Higher studies2 year£5000

 

However, poor credit history is the greatest obstacle to financial growth.

Unless your credit profile reveals CCJ, pending payments, or credit card dues, you may not grow financially. Here, progressing with CCJ in credit reports is challenging. Thus, plan up debt repayment with savings.  If savings fall low, pay debts with bad credit CCJ loans from a direct lender online. These loans help individuals with multiple CCJs get instant finance. You can use it for any purpose. Yes, CCJ impacts your credit score and makes it challenging to secure a loan. However, you can one despite poor credit for emergencies.

6)   Try to delay gratification

It is one of the most powerful ways to avoid overspending. It involves resisting immediate urges to buy anything. It involves skipping the carts, stores or shops that provoke instant buys. Switch off the application as you witness a discount. Similarly, identify if you can delay the purchase for some time. You will be surprised to know that- you never needed it in the first place! Most of the time, it is easier to delay than regret finances later.

Bottom line

These are some ways to overcome spending addiction as students. It is easy to fall prey to impulse purchases and practice restrictions. Having a clear budget and auto payments may help you with that. Secondly, setting lifestyle goals like- car purchases, emergency funds, and other aspects may help you utilise money well. Student life is replete with financial surprises. Thus, planning helps escape debt.

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