Extravagant spending can affect anyone, regardless of income level. From professional athletes like Travis Kelce splurging on nightclub extravaganzas to CEOs like Chris Nassetta purchasing luxury cars after emotional upheavals, wasteful expenditures are a common human tendency. According to a recent survey by Motley Fool Money, 85% of Americans admit to occasionally indulging in unnecessary expenses. Among the top habits identified are frequent dining out, impulse online purchases, buying convenience food and drinks, discarding leftovers or expired items, and paying for unused streaming services. Ramit Sethi, a self-made millionaire and author, emphasizes that food-related spending often represents the largest category where funds could be redirected into more meaningful areas. Experts suggest strategies to curb such spending patterns, including taking a pause before making impulsive buys, increasing the difficulty of spending, and automating financial decisions.

Taming Impulse Spending: Practical Approaches

Controlling impulsive spending requires a shift in mindset and behavior. Keith Barron, a personal finance expert, advises individuals to take a moment of reflection before finalizing a purchase. This involves resisting the immediate urge to checkout during online shopping and instead adding desired items to a wish list. By waiting a few days, many people discover they no longer desire the product, thus avoiding unnecessary expenditure.

Beyond simply delaying purchases, experts recommend implementing additional barriers to spending. Samantha Rosenberg, co-founder and COO of Belong, suggests introducing steps that make spending less convenient, such as visiting stores in person or enabling mobile banking notifications. These extra decision points—choosing the store, traveling there, evaluating the item in person, and standing in line to buy it—encourage critical thinking about purchases. The process slows down the consumer's pace and fosters a more deliberate approach to spending money, ultimately leading to wiser financial choices.

Automating Finances: A Path to Savings

Another effective strategy to minimize wasteful spending is through automation. Ramit Sethi advocates for directing money into retirement accounts or high-yield savings accounts via payroll deductions or regular bank transfers. By making financial contributions automatic, individuals reduce the likelihood of overspending on non-essential items. Automation ensures that money is allocated toward long-term goals before it can be spent impulsively.

This method not only simplifies financial management but also encourages disciplined saving habits. When finances are automated, individuals have a clearer understanding of their disposable income, which helps them make informed decisions about necessary versus unnecessary expenses. For couples, Sethi recommends using tools like his "Money for Couples" podcast to align financial goals and automate joint contributions. Such measures create a structured framework for managing finances, reducing the temptation to indulge in wasteful spending while fostering a culture of saving and investment.