Mindful spending: 10 ways to save money and lower stress — Calm Blog (2024)

Written By Calm Editorial Team

Mindful spending: 10 ways to save money and lower stress — Calm Blog (2)

Clinically reviewed by Dr. Chris Mosunic, PhD, RD, CDCES, MBA

Explore how mindful spending can help you save money, stick to your budget, and lower your stress. Plus, 10 tips to be more mindful about your spending.

It can be easy to spend money without much thought. The lure of online shopping deals and a few quick taps on a phone screen can lead to impulse buys rather than considered purchases. And if our spending habits are consistently misaligned with our financial goals, it can lead to stress. Mindful spending can encourage us to pause and think about each purchase, to ask why we’re buying something, and whether it aligns with our financial goals.

Developing a deeper understanding and more intentional approach to using our money with mindful spending techniques can help us stick to our budget. This can lead to a better relationship with money, reduced stress and anxiety associated with finances, and better overall wellbeing.

What is mindful spending?

When you’re mindful, you’re aware of your thoughts and feelings without getting caught up in them, so mindful spending is about making financial decisions with a clear mind, being present, fully engaged, and free from distraction.

Understanding whether your spending aligns with your personal values, goals, and financial situation involves pausing to think. Before making a purchase, consider whether it will bring real value to your life.

Key aspects of mindful spending

  1. Intentionality: Making every spending decision deliberately, not out of habit or impulse

  2. Awareness: Understanding why you’re spending money and how it affects your financial health

  3. Reflection: Thinking about your spending patterns and adjusting them as needed

  4. Alignment with goals: Ensuring your spending supports your broader life goals and values

Mindful spending can help counteract mindless spending, which often leads to self-sabotaging financial behaviors. Without mindfulness, it's easy to spend money in ways that feel good momentarily but don't contribute to your long-term happiness or goals.

By being thoughtful about where your money goes, you can make sure your financial resources are being used in the best way possible for your personal wellbeing. It can be a powerful way to take control of your life.

Differentiating between wants and needs in order to spend mindfully requires self-discipline, which is an important part of effective money management. Learning how to become more disciplined with mindful spending can help you make choices that make sense in the short term but also contribute to a healthier, happier, and more balanced life. It can support your financial health, personal fulfillment, and emotional wellbeing.

The benefits of money mindfulness

Embracing money mindfulness can transform your relationship with finances and benefit your financial life, your bank account, and your wellbeing.

1. Achieving financial wellbeing: Mindful spending can help you prioritize your financial goals and manage your money more effectively. Focusing on what truly matters can help you budget wisely, leading to a healthier financial state.

2. Increased awareness of spending habits: Regularly practicing mindful spending can heighten your awareness of where your money goes. Understanding your spending patterns can help you make more informed decisions.

3. Reduced stress and anxiety: Mindful spending can relieve stress caused by financial worries by giving you more control over your finances.

4. Letting go of financial regret: Mindful spending can lead to fewer impulsive purchases and reduce the likelihood of buyer’s remorse. Spending with intention means you’re more likely to feel satisfied with where your money goes.

5. Enhanced decision-making skills: With each thoughtful purchase, you strengthen your ability to make choices that are in your best interests, both financially and personally.

6. Alignment with personal values: Whether it's investing in experiences over things, supporting small businesses, or saving for future goals, mindful spending encourages you to spend in ways that reflect your personal values. This alignment can increase your feelings of fulfillment.

7. Improved financial relationships: Mindful money management can lead to healthier discussions and better financial teamwork with partners or family members.

10 mindful spending tips

Implementing mindful spending in your daily life can seem challenging at first, but these practical tips can make it easier to take a mindful approach to financial decisions. Try not to think of it as restricting your spending, but as making smarter choices that can lead to a fulfilling and stress-free financial life.

1. Track your spending habits

To begin mindful spending, start tracking your expenses, no matter how small. This can give you an understanding of where your money’s going and helps identify areas to make changes.

2. Pause before purchasing

Before every purchase, ask yourself whether this transaction is necessary, if it aligns with your goals, and whether it’ll bring you lasting satisfaction. This pause can be a powerful tool against impulse buying.

💙 Reflect on the urge to spend money by learning about Compulsion in this guided meditation with Tamara Levitt.

3. Identify your triggers

Recognize what drives your spending. Is it emotions, certain environments, or specific people? Understanding these triggers can help you avoid unnecessary spending and find healthier ways to cope with the causes of impulse buying or overspending.

💙 Learn how to identify your money-spending triggers and combat those Cravings to spend money unnecessarily through mindfulness and meditation.

4. Use cash instead of cards (when possible)

Using cash can make spending feel more tangible and real. Handing over physical money can help you become more aware of the amount you're spending than when you use credit or debit cards.

5. Set aside money for personal enjoyment

Allocate a portion of your budget for guilt-free spending on things that bring you joy. Setting aside money for experiences, items, or other indulgences that bring you joy are more fulfilling than frivolous spending.

6. Practice delayed gratification

Put items you want to buy on a wish list and wait a few days or weeks before purchasing. This delay can help you figure out if it's something you truly need or just a fleeting desire.

💙 Explore the idea of persistent spending coming from a place of Boredom in our series on Staying on Track.

7. Create a conscious spending plan

Instead of giving yourself a strict budget, make a spending plan that aligns with your values and goals. Plan to use your money in a way that supports your long-term objectives and personal fulfillment.

💙 Building Consistency in your spending habits takes time and effort to implement and achieve, but with some time and effort it’s possible.

8. Understand your financial goals

Be clear about your short-term and long-term financial goals to guide your spending decisions and help you prioritize your expenses.

9. Reflect on your purchases

Regularly review your purchases. Ask yourself if each item was worth it, and what you learned from each spending decision to improve your future financial choices.

💙 Try to practice Self-Compassion as you reflect on your purchases. This isn’t about judging or shaming yourself, but better understanding your motives and patterns.

10. Educate yourself about personal finance

The more you understand about personal finance, the better equipped you'll be to make wise spending decisions.

Mindful spending FAQs

What are the 4 types of spending?

  1. Essential spending: This covers the things you need to live and function, like rent or mortgage, utilities, groceries, transportation, and healthcare.

  2. Discretionary spending: Discretionary spending is where you have more freedom. It includes non-essential purchases like dining out, entertainment, hobbies, and luxury items. Mindful spending can make a big difference here, as these expenses are more about wants than needs.

  3. Obligatory spending: These are the payments you're committed to, like loan repayments, insurance premiums, and taxes. Although they might not be essentials for daily living, they’re obligations you need to fulfill.

  4. Emergency spending: This is for unexpected expenses such as car repairs, home maintenance issues, or medical emergencies. It's important to have a financial cushion or an emergency fund to cover these types of expenses without impacting your other spending areas.

What is a spending habit?

A spending habit is the regular way you manage your financial resources. It can include everything from how often you shop to the types of products you typically buy, and even how you react to sales or discounts. These habits can be deeply ingrained, making them challenging to change. However, becoming aware of your spending habits can help you adopt a more mindful approach to managing your money.

What is obsessive spending?

Obsessive spending, also known as compulsive buying disorder, is a pattern of chronic, repetitive purchasing that becomes difficult to stop and can bring harmful consequences. People with this disorder often buy things they don't need and sometimes can't afford. It can lead to significant financial, emotional, and relationship problems. Treatment might involve cognitive behavioral therapy and developing healthier coping mechanisms.

What is the 50-30-20 rule?

The 50-30-20 rule is a simple budgeting guideline to help manage your finances effectively. It suggests dividing your after-tax income into three categories to help you enjoy life and secure your future without overspending.

50% on needs: Allocate half of your income to necessities, like housing, food, utilities, and transportation.

30% on wants: Use up to 30% for discretionary spending such as travel, dining out, and entertainment.

20% on savings and debt repayment: The remaining 20% can be saved, invested, or used to reduce any debts beyond the minimum payments.

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How often do you meditate?

RegularlySometimesRarelyNever

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` if (contentWrapperRow && contentWrapperCol) { contentWrapperCol.classList.add('cutoff') contentWrapperRow.insertAdjacentHTML('beforeend', cutoffBtnHtml); cutoffBtn = contentWrapperRow.querySelector('.cutoff__btn__btn'); cutoffBtn.addEventListener('click', () => { contentWrapperCol.classList.remove('cutoff') cutoffBtn.parentElement.remove() if (typeof amplitude != 'undefined') { amplitude.track('Blog : Continue Reading : Clicked', eventProperties); } }) } } // Paragraphs seen, continue reading button seen const paras = document.querySelectorAll('.blog-item-content p'); const pFirst = paras[0] const pMiddle = paras[Math.round(paras.length / 2)] const pLast = paras[paras.length - 2] const eventStops = { first: false, middle: false, last: false, cutoff: false } function throttle(fn, wait) { var time = Date.now(); return function() { if ((time + wait - Date.now()) < 0) { fn(); time = Date.now(); } } } function isInViewport(element, eventKey) { if (element) { var bounding = element.getBoundingClientRect(); if ( bounding.top >= 0 && bounding.left >= 0 && bounding.right <= (window.innerWidth || document.documentElement.clientWidth) && bounding.bottom <= (window.innerHeight || document.documentElement.clientHeight) && !eventStops[eventKey] ) { eventStops[eventKey] = true return true; } } } const sendEvents = order => { if (order === 'cutoff') { dataLayer.push({'event': 'continue_reading_seen'}) if (typeof amplitude != 'undefined') amplitude.track('Blog : Continue Reading : Seen', eventProperties); } else { dataLayer.push({'event': `${order}_paragraph`}) if (typeof amplitude != 'undefined') amplitude.track(`Blog : Article Scroll : ${capitalizeFirstLetter(order)} Paragraph`, eventProperties); } } const checkParaSendEvent = () => { if (isInViewport(pFirst, 'first')) sendEvents('first'); if (isInViewport(pMiddle, 'middle')) sendEvents('middle'); if (isInViewport(pLast, 'last')) sendEvents('last'); if (isInViewport(cutoffBtn, 'cutoff')) sendEvents('cutoff') } const capitalizeFirstLetter = (string) => { return string.charAt(0).toUpperCase() + string.slice(1); } window.addEventListener('scroll', throttle(checkParaSendEvent, 150)) // Topic Targeted App Audio Track CTAs const ctaToReplace = document.querySelectorAll('img[src*="try-calm-for-free.png"]')[0] const appAudioData = [ { title: 'sleep_quality', html: `

5 tools you need to sleep better tonight

  • Improve your sleep with these science-backed tips
  • From neuroscientist and sleep expert, Dr. Matthew Walker
  • Bite-sized audio lessons for long-term results

Sleep Better

Easy Tips for Better Sleep

Dr. Mathew Walker Neuroscientist and Sleep Expert
  • Don't Try, and Don't Worry! 4 min
  • Your Sleep Type 5 min
  • Sleep and Your Mood 4 min
  • Your Sleep Environment 4 min
  • Sleeping with Your Phone 4 min

Sleep Better

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Get grounded in three minutes

  • Calm your body and mind using your breath
  • From former monk and bestselling author, Jay Shetty
  • Short audio practice to help you find balance

Calm Your Mind

Jay Shetty Author, Coach, Former Monk

Calm Your Mind

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Ready to fall asleep with ease tonight?

  • Quiet your mind and body using this guided exercise
  • From mindfulness specialist Chibs Okereke
  • Soothing audio session to unwind into sleep

Get To Sleep

Chibs Okereke Mindfulness Instructor

Get To Sleep

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How to beat work stress & burnout like a boss

  • Relieve stress and anxiety quickly during the workday
  • From stress and burnout specialist, Chibs Okereke
  • Short exercises to help you find your calm

Take a Break

Quick Breaks

Chibs Okereke Mindfulness Instructor
  • Managing Overwhelm 5 min
  • 60 Second Reboot 1 min
  • Step Away From the Computer 4 min
  • Let's Unplug 4 min

Take a Break

`, urls: ['/blog/how-to-recover-from-burnout','/blog/beat-burnout','/blog/sunday-scaries'] }, { title: 'sleep_sounds', html: `

The music you need for better sleep

  • Get more restful sleep with delta wave music
  • Produced with Binaural Beats, scientifically shown to enhance sleep
  • 8 hours of music for deep sleep

Get Deep Sleep

Delta Waves for Deep Sleep

Curated by experts at Calm
  • Halting Thoughts (Delta 145 Hz - 147 Hz) 60 min
  • Slow Release (Delta Binaural) 60 min
  • Careful Mind (Delta 83 Hz - 84 Hz) 60 min
  • Calm Body (Delta Binaural) 59 min

Get Deep Sleep

`, urls: ['/blog/what-is-green-noise','/blog/sounds-to-help-you-sleep','/blog/best-music-to-fall-asleep-to'] }, { title: 'anxiety', html: `

The 11 anti-anxiety tools you need in your life

  • Relieve anxiety with these game-changing tools
  • From clinical psychologist & online educator, Dr. Julie Smith
  • Bite-sized audio sessions for long-term relief

Overcome Anxiety

Overcome Stress and Anxiety

Dr. Julie Smith Clinical Psychologist and Educator
  • Calm Your Heart with Deeper Breaths 3 min
  • Challenge Your Negative Thoughts 4 min
  • Guided Breathing to Release Tension 10 min
  • Distance Yourself From Anxious Thoughts 5 min
  • Create Emotional Safety 4 min

Overcome Anxiety

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How to cultivate happier and healthier relationships

  • Strengthen your connections (even during conflict)
  • From the Head of Mindfulness at Calm
  • 12 audio sessions to create lasting change

Improve Your Relationships

Relationships with Others Series

Tamara Levitt Head of Mindfulness at Calm
  • Nurturing Relationships 10 min
  • Holding Space 10 min
  • Listening 10 min
  • Boundaries 10 min
  • Empathy 10 min

Improve Your Relationships

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financial wellnessmindful spending

Calm Editorial Team

Mindful spending: 10 ways to save money and lower stress — Calm Blog (2024)

FAQs

Mindful spending: 10 ways to save money and lower stress — Calm Blog? ›

The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals.

What is the 50 30 20 rule? ›

The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals.

How to think less about money? ›

How to stop worrying about money and start living
  1. Get grounded: Practice relaxing breathing exercises and meditation. ...
  2. Create financial goals: Set clear, achievable objectives. ...
  3. Make a budget: Track finances and control spending. ...
  4. Schedule money check-ins: Regularly review your financial situation.
Mar 12, 2024

What is mindful spending? ›

Mindful spending empowers you to take full control of your spending habits. You gain the freedom to spend money on things you know are worth it rather than looking back with regret.

How to budget $4000 a month? ›

making $4,000 a month using the 75 10 15 method. 75% goes towards your needs, so use $3,000 towards housing bills, transport, and groceries. 10% goes towards want. So $400 to spend on dining out, entertainment, and hobbies.

What is the 40 40 20 budget rule? ›

The 40/40/20 rule comes in during the saving phase of his wealth creation formula. Cardone says that from your gross income, 40% should be set aside for taxes, 40% should be saved, and you should live off of the remaining 20%.

What is money dysmorphia? ›

Money dysmorphia is when your perception of your financial situation doesn't represent reality. It's a distorted view of your finances. For example, you might believe you're not doing well financially even though your finances are in great shape.

How to stop worrying so much? ›

Try these strategies to help overcome excessive worrying in a way that works for you, and be patient with yourself.
  1. Schedule your worry time. ...
  2. Practice mindfulness. ...
  3. Try a body scan to release tension. ...
  4. Practice gratitude to counterbalance worry. ...
  5. Limit your exposure to stressors. ...
  6. Share your worries with someone you trust.
Oct 19, 2023

How to stop ruminating about money? ›

8 strategies to stop stressing about money
  1. Don't let money consume your thoughts.
  2. Get organized.
  3. Let go.
  4. Set up monthly auto payments.
  5. Talk to someone about your financial stress.
  6. Manage your health to build wealth.
  7. Focus on your financial goals.
  8. Live a little.

How do I fix my money mindset? ›

Six Steps to Creating a Positive Money Mindset
  1. Forgive Your Past Financial Mistakes. No one is perfect. ...
  2. Understand Your Thoughts and Emotions Surrounding Money. ...
  3. Realize That Comparing Yourself to Others is a Losing Game. ...
  4. Work on Forming Good Habits. ...
  5. Create a Budget That Brings You Joy. ...
  6. Remember to be Thankful.

How do I stop feeling bad for spending money? ›

We tend to allocate money mentally into different spending categories – whether it's good food, entertainment or a hobby. Identifying how each purchase will bring you satisfaction and joy might help you feel more at ease when you're spending money. Think about the memories that you'll make with each spend.

What are the 3 A's of mindfulness? ›

The 3 A's of mindfulness are awareness, acceptance, and attunement. Together, these principles can help you cultivate a deeper, more compassionate connection with yourself and your environment. Awareness involves noticing your thoughts, feelings, bodily sensations, and the world around you in the present moment.

What are the 4 types of spending? ›

The four types of consumer spending habits
  • Abundant spending.
  • Neutral spending.
  • Scarcity spending.
  • Avoidance spending.
Mar 21, 2024

How to be financially mindful? ›

10 mindful spending tips
  1. Track your spending habits. ...
  2. Pause before purchasing. ...
  3. Identify your triggers. ...
  4. Use cash instead of cards (when possible) ...
  5. Set aside money for personal enjoyment. ...
  6. Practice delayed gratification. ...
  7. Create a conscious spending plan. ...
  8. Understand your financial goals.
Feb 21, 2024

Is the 50 30 20 rule outdated? ›

But amid ongoing inflation, the 50/30/20 method no longer feels feasible for families who say they're struggling to make ends meet. Financial experts agree — and some say it may be time to adjust the percentages accordingly, to 60/30/10.

What is the disadvantage of the 50 30 20 rule? ›

Drawbacks of the 50/30/20 rule: Lacks detail. May not help individuals isolate specific areas of overspending. Doesn't fit everyone's needs, particularly those with aggressive savings or debt-repayment goals.

What is the 50 30 20 rule for 401k? ›

Key Takeaways

The 50/30/20 budget rule states that you should spend up to 50% of your after-tax income on needs and obligations that you must have or must do. The remaining half should be split between savings and debt repayment (20%) and everything else that you might want (30%).

What are the flaws of the 50 30 20 rule? ›

While the 50 30 20 rule can be a useful way to manage your finances, it may not be suitable for everyone. Here are some potential disadvantages of the 50 30 20 rule: Some people might need more than 50% of their income for needs: some individuals or families may have higher essential expenses.

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