How To Avoid That Payday Splurge

Last Updated November 12, 2021
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Let’s Talk About How to Avoid That Payday Splurge

According to a survey by Salary Finance, 32% of Americans run out of funds before payday.

This isn’t exclusive to people who are living from paycheck to paycheck – even those with a high income (over $100,000) feel cash-strapped until they get their next paycheck.

This makes payday a huge relief and, for some, an opportunity to splurge. There is nothing wrong with treating yourself to what you earn and deserve, but it’s worth looking at how this might be affecting your expenses and, ultimately, your financial freedom.

Unfortunately, you could be suffering from what we termed, Lifestyle Creep. You need to nip this in the bud as soon as it arises! It’s a slippery slope. On that note, here is a list of tips to help you avoid unnecessary payday splurges.

Limit Your Spending Triggers

Think about what kind of situation makes you spend more… and then try to limit them.

For instance, if you’re hanging out with friends who love to shop, don’t let peer pressure get to you. If it’s way outside your budget, avoid it. Take a rain check on the next shopping spree and let your friends know that you’re trying to save. You never know how understanding they might be until you explain your situation, and they might even consider changing the group hangout to a place where you won’t have to break the bank.

Another common spending trigger is emotion, which you might have had a rollercoaster of in the past year or so. Money coach Emily Guy Birken emphasizes that emotional spending has not only risen but has also become easier with the growth of e-commerce. One way you can curb this is to unsubscribe from email lists and social media accounts of your favorite retail stores. Also try delaying instant gratification. You can add items to your cart but wait a few days before checking out to evaluate if you actually need those things or you were just looking for temporary joy.

Stick To A Budget

Creating and sticking to a budget is one of the best ways to curb payday splurges.

When you’ve allocated your money for other things, you’ll have less cash on hand to spend on unnecessary items.

A feature on how to balance a budget by AskMoney outlines the basics as identifying how much you make versus how much you spend, and on what. They also suggest using budgeting apps like Mint or You Need a Budget, which can help you keep track of your monthly expenses. Seeing how much you spend in writing might deter you from splurging on payday. Stretch out your income for the month instead.

Switch To Cash

Finally, a simple way to stop overspending on payday (and most other days) is to switch to cash.

It might give you the “pain of paying”, which NBC News reports has helped 82% of people become more aware of their expenses.

This is compared to those who regularly pay with credit cards – overspending is a risk that does come with their ease of use. If you need an extra push, only bring the cash that you need every time you go out to the mall or on errands. Erase your stored credit card information on all those online shops, too. This will make it more difficult for you to shop online and could discourage impulse buying.

Whether you’re in your early 20s or late 40s, it’s never too late to develop a healthy relationship with your finances. Good spending habits like the ones above not only allow you to escape the paycheck to paycheck cycle, but they also help ensure a more financially stable future for you and your family.