LIFESTYLE & TRAVELCOLLEGE

Are Your Spending Habits Setting You Up for Trouble?

Are you Spending More on Things You Don’t Really Need?

Have you noticed your spending creeping up lately? That $7 latte, the late-night food delivery, an impulsive buy from Temu or Shein – it all adds up. You’re not alone. A recent report found that nearly one in three Gen Zers living paycheck to paycheck blame non-essential purchases for their financial stress.

What’s Going On?

Right now, a lot of us are spending more on non-essentials like eating out, streaming subscriptions, fashion trends, and even small splurges like Uber rides or new skincare products. It feels good in the moment, but if you’re not careful, it can mess with your financial future.

Throwback Tools, Forward Thinking

Believe it or not, there is a silver lining! Getting creative with how you manage money can help you get back on track. One example of this is using a strategy called cash stuffing. It’s a viral trend where you put cash into labeled envelopes for different spending categories. It’s old-school, but it works. Physically seeing your limits can stop you from swiping your card on impulse buys. If you’re worried about keeping envelopes or cash in a safe space, consider digitizing the concept with labeled subsavers.

Why This Matters

Here’s the catch: even with some budgeting hacks, if your non-essential spending outweighs your income or savings, you’re in risky territory. Think credit card debt. Think no emergency fund. Think being stuck in a paycheck-to-paycheck loop.

All of this is a warning that you, like many, may be at risk of delaying major goals like moving out, traveling, or building wealth just to keep up with today’s trends.

You might feel like you have time to figure it out later, but habits start now.

What You Can Do to Start Saving Today

Here’s how to get your spending under control without giving up everything fun:

• Track your expenses. Use an app or even just a note on your phone to see where your money is actually going.
• Try cash stuffing. Especially if swiping a card feels invisible to you.
• Budget for fun. Don’t cut all joy from your spending. Instead, give yourself a monthly fun fund and stick to it.
• Learn more. Follow creators or apps that actually teach legitimate financial literacy and not just get rich quick hacks.
• Unfollow temptation. If your social media is full of haul videos, it might be time for a content cleanse.

The Bottom Line

You’ve got big dreams. Don’t let short-term spending habits derail them. It’s important to enjoy life, but make sure your money habits today are setting you up for the kind of future you actually want. A reality check now could be the thing that helps you avoid financial regret later.

Sources:

https://ir.lendingclub.com/news/news-details/2023/29-of-Gen-Z-Consumers-Living-Paycheck-to-Paycheck-Cite-Nonessential-Spending-as-a-Cause-for-Financial-Distress/default.aspx#:~:text=A%20notable%2029%25%20of%20Gen,them%20the%20most%20affected%20demographic.

https://www.investopedia.com/gen-z-s-and-the-cash-stuffing-trend-11731846

https://fortune.com/2023/05/12/what-is-cash-stuffing-tiktok-personal-finance-trend-gen-z/

https://finance.yahoo.com/news/7-poor-habits-gen-z-200129623.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAHhfnuU2yHQVqAg2AZbNC9etSerPrt-rwVJ9tuEx7EYua7r9JTHE8xYlmwQqlr23VX2y1-t1TBBVQntLHrRva9pgFikjiDLxmok31vxIsiqxKz_OFXwqyGsdTBTK1FSG9oEduMg66CrgblmGB-l90Ef5cDcqZxZ_Q3Z_KYP5ax4w

https://www.aol.com/gen-zers-avoid-6-money-104228417.html