I’ve interviewed 100+ dumb dumbs on Financial Audit.
Here are the 2 biggest lessons I’ve learned about human behavior and overspending:
- Deep down, people know what to do.
You know what you need to do to avoid overspending and get your sh*t together.
Just make more and spend less.
That means not spending your f*cking money on bad money habits like Starbies, TAQUITOS, and online shopping.
That means not taking on unnecessary debt because “you can.”
- People know when they’re f*cking up.
Everyone goes through the same cycle:
- You set a plan/budget to save money
- You follow the plan for a few days
- You get triggered to buy something
- You buy it (when deep down you know you shouldn’t)
- You regret it and beat yourself up for it
- You tell yourself you won’t do it again
- REPEAT
This is the cycle of BS overspending that everyone goes through.
EVERYONE.
Although you know you shouldn’t buy something because it’s not in your budget… because you watch my videos… because it’s a dum-dum decision…
You’ll still probably do it.
And beating yourself up won’t help break the cycle.
You’ll just feel like a piece of 💩
The trick here is to understand human behavior and focus on one thing only:
Identify your trigger.
There are tons of reasons why you buy:
- You’re bored so you shop online
- You pass a Starbucks on your way to work
- You see an ad on social media
- You get an email from Kohl’s about that Kohl’s CASH MONIES
Everyone has a trigger, and they’re everywhere.
You can’t avoid them.
Whatever it is, take note of the trigger – you might even have more than uno.
Once you recognize your triggers, you need to replace the spending habit with a new one.
If the trigger is from a feeling, be mindful of how you’re feeling.
You can’t avoid your feelings, and you shouldn’t try to suppress them.
Recognize how you’re feeling, take a deep breath, and slow down.
You can also replace the bad habit with a better one, like moving $5 into your savings account every time you want to munch on taquitos.
“I ain’t reading all that, Caleb. I’m happy for you tho. Or sorry that happened.”
*frustrating desk slam x3*
Alright then, here are a few quick tips you can try to avoid overspending:
- Set (AND STICK TO) a budget
Don’t think I need to explain this one. 50/30/20 rule.
- Use cash or debit instead of credit.
Studies show that using cash decreases spending by 10-18% because it’s painful for your brain.
The same thing happens with debit (albeit not as much).
Also, it’s a great way to set yourself accountable by only allowing yourself to have a certain amount of money on you.
- Use the 1-week rule.
If you want to buy something, wait 1 week before buying it.
Do your research and look into it.
By then, you’ll be able to make an informed, logical decision instead of using your monkey brain.
- Stay busy.
People do bad things like snack, doom scroll on social media, or spend their monies when they’re bored.
Solution = don’t be bored.
Get a hobby, get out of the house, go on a walk, etc.
You’re welcome.
Taquitos,
Caleb Hammer
P.S.
I hope you love my emails as much as I do.
But I know that everyone’s situation is different so it can be hard to understand the best approach you should take when you’re in the sh*t.
That’s why I’m sending you to my budgeting class which gives you the tools to make decisions that are right for your situation.
I also give you specific advice based on your situation.
